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City Council Packet - 12/21/1993 CITY OF TIGARD OREGON 21 2:1g; I PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available, ask to be recognized by the Mayor at the beginning of that agenda item. Visitor's Agenda items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Administrator. Times noted are estimated: it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. iBusiness agenda items can be heard in My order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 639-4171, Ext. 309 (voice) or 684-2772 (fDD - Telecommunications Devices for the Deao. Upon request, the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments; and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers, it is important to allow as much lead time as possible. Please notify the City of your need by 5.00 p.m. on the Thursday preceding the meeting date at the same phone numbers as listed above. 639-4171, Ext. 309 (voice) or 684-2772 (TOD - Telecommunications Devices for the Deaq. SEE ATTACHED AGENDA COUNCIL AGENDA - DECEMBER 21, 1993 - PAGE 1 • TIGARD CITY COUNCIL MEETING TOWN HALL ROOM AGENDA 1. STUDY MEETING (6:30 p.m.) 1.1 Call to Order - City Council & Local Contract Review Board 1.2 Roll Call 1.3 Council Communications/Liaison Reports 1.4 Call to Council and Staff for Non-Agenda Items 2. DISCUSSION AND CONSIDERATION: CHAMBER OF COMMERCE OFFICE BUILDING • City Administrator 3. UPDATE - PLANNING COMMISSION DECISION - COSTCO WHOLESALE - SDR 93-0018/PDR 93-0010 • Community Development Director 4. TRANSPORTATION UPDATES: 4.1 1-5 & 217 Interchange - Funding Status 4.2 MSTIP 11 - Durham Road Project 5. WATER ISSUES CONSIDERATION • City Administrator 5.1 Review and Approve Intergovernmental Agreements for Delivery of Water Service a. Tigard Water District b. King City C. Durham 5.2 Review and Approve Ordinance Authorizing the Imposition of System Development Charges - Ordinance No. 93-%- 5.3 Review and Approve Ordinance Authorizing the Imposition of Water System Rules and Regulations - Ordinance No. 937-- 5.4 Review and Approve Resolution Setting Rates, Fees and Charges for Water and Water Related Services - Resolution No. 93-_ 6. REVIEW COUNCIL PRIORITIES • City Administrator COUNCIL AGENDA - DECEMBER 21, 1993 - PAGE 2 7. NON-AGENDA ITEMS 8. EXECUTIVE SESSION: The 'Tigard City Council will go into Executive Session under the provisions of ORS 192.660 (1) (d), (e), & (h) to discuss labor relations, real property transactions, current and pending litigation issues. 9. ADJOURNMENT co&1214.93 COUNCIL AGENDA - DECEMBER 21, 1993 - PAGE 3 Council Agenda Item TIGARD CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 • Meeting was called to order at 6:30 p.m. by Mayor Jerry Edwards. i 1. ROLL CALL Council Present: Mayor Jerry Edwards; Councilors Judy Fessler, Wendi Conover Hawley, Paul Hunt, and John Schwartz. Staff Present: Patrick Reilly, City Administrator; Ed Murphy, Community Development Director; Liz Newton, Community Involvement Coordinator; Tim Ramis, Legal Counsel; Catherine Wheatley, City Recorder, and City Engineer Wooley. 1. STUDY MEETING Council Communications: Councilor Fessler updated Council on the Metropolitan Area Communications Commission. She reported on strategic planning efforts noting the continued importance of keeping jurisdictions up to date with technology. There is an effort underway to communicate more with the public so they are aware of what MACC is doing. Councilor Fessler noted the Tualatin Valley Community Access will become non-profit and is in a period of transition. Mayor Edwards updated Council on Washington County Consolidated Communications Agency (WCCCA). Last week was the end of Mayor Edwards' term as Chair. The new Chair is Lee Ascher, and Forrest Soth, Beaverton Councilor, is now first Vice Chair. Councilor Hawley will take Mayor Edwards' position as representative to WCCCA. Some important issues are coming to the forefront, including the State's review of 911 revenue funds and control of the use of cellular phones. The new 800 megahertz radio system will be coming on line soon. The MDT systems are being worked on and should be on line in early Summer. It is likely that the cost for individual jurisdictions with regard to communications will increase; i.e., 30-35% for the City of Tigard. CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 1 Non-Agenda Items: City Administrator Reilly advised that under Agenda Item 5 (water issues), a series of actions had been proposed for Council consideration. All but Item 5.2 would be postponed until next week. City Administrator Reilly noted that Garry Bullard, Labor Negotiator, will brief Council during Executive Session about the upcoming negotiations with the Tigard Police Officer's Association. 2. DISCUSSION AND CONSIDERATION o CHAMBER OF COMMERCE OFFICE BUILDING City Administrator Reilly advised the City had been waiting to hear from the Chamber of Commerce as to what interest they would have in the building located on Main Street. City Administrator Reilly advised he would recommend placing the building on the market for sale. The Chamber of Commerce is looking at options to relocate and has asked for some assurances to remain in the building until July. It is anticipated the staff would be coming to Council in January for an official declaration of the building as surplus. Discussion followed. In response to Council questions, Mr. Jim Nicoli, Chamber of Commerce representative, relayed some of the options the Chamber has been reviewing. One of the problems with the Main Street location is lack of parking. Also, the Chamber has limited funds. Mayor Edwards noted Council would need to discuss the disposition of the building in an Executive Session to determine how to best proceed in the public's interest and review the options. He noted the process must be fair to all parties if it is decided the building should be disposed of. He advised he would have no problem with allowing the Chamber of Commerce to stay until July. City Administrator Reilly noted the issue before Council was to decide whether they wished to invest in the property or to proceed with disposal of the property. Councilor Hawley asked whether the City wanted to maintain a presence on Main Street. Mayor Edwards said he did not think a presence on Main Street was necessary. Councilor Hunt concurred, noting he did not think this would be a wise economic decision. Councilor Fessler suggested the building could be marketed in different ways. She also noted the City may want to retain it as a Community Policing or bike patrol outpost. She added that other non-profit organizations such as the YMCA might be able to use part of the building. CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 2 Councilor Schwartz recalled that when the new City Hall was located and built on the Hall Boulevard site, it was the thinking that the fire and water buildings would also be located in this vicinity thereby establishing a core area of government offices. He advised he would not want to have another City office on Main Street. After discussion, consensus of Council was that staff should prepare a report to Council on the sale of the building for a presentation in January. City Administrator Reilly noted options would be presented to Council, as well as information on the appraised value. 3. UPDATE - PLANNING COMMISSION DECISION - COSTCO WHOLESALE - SDR 93-0018/PDR 93-0010 City Administrator Reilly noted that Councilor Fessler asked for a review of the Planning Commission decision for the Costco development. Community Development Director Murphy reviewed the type of development. The following are key points of his summary: • 156,000 square foot store (building would be about 4 acres in size) • Construction will stay out of the wetlands area • 849 parking spaces • Several houses will be moved out • Almost all trees on the site will go • There will be a number of retaining walls • New trees will be planted • Access will be off of Dartmouth Street • Landscaping concerns by the Planning Commission resulted in the requirement of screening on the Highway 217 side • No objections were expressed at the Planning Commission level • The area is zoned commercial with a planned development overlay Councilor Fessler reported it was her understanding that this will be the largest of all the Costco stores. She asked whether a four-acre building was what the City wanted as the gateway onto Dartmouth Street (Triangle area)? She noted staff had thought that 515 parking spaces would be enough, but Costco added several hundred more, resulting in what appeared to be a great excess. Councilor Fessler suggested some creativity could be used with parking to eliminate the large amount of asphalt on the site. Community Development Director Murphy noted Costco did explore a couple of alternatives for the site. These alternatives did not save many trees. Mr. Murphy advised the Development Code sets the minimum number of parking spaces, but no maximum. According to Costco's experience, they determined the number of parking spaces needed. CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 3 Legal Counsel Ramis explained that if Council calls up this issue, they can call up on the record, or they can ask for additional testimony. If Council should call it up, they would be calling up to approve, modify, or deny the proposal. In order to modify or deny, Council must cite criteria. Council discussed parking and the Code. Mayor Edwards noted the Planning Commission reviewed the landscaping requirements; he also noted that the store will be located in a commercial area. A structured parking area would be more expensive and present liability and safety problems. He said he was not in favor of calling it up at this time. Councilor Schwartz noted he had not envisioned . fostco-type of development at this location. However, he was not persuaded that there was a reason to vote for a call up for a review of the Planning Commission decision. He noted a two-story parking structure would not be practical with the type of commercial activity where customers are pushing carts of groceries to their vehicles. Councilor Fessler noted there was too much of an increase in parking. In addition, the landscaping would take thirty or forty years to be an effective buffering. Councilor Hunt noted his agreement with Councilor Fessler that Council has the right to review this kind of situation. He noted, however, he disagreed with the conclusion that a two-story parking structure would be the solution. He noted it would be difficult for Costco customers to use such a structure. Councilor Fessler questioned whether there were any other areas of the decision that Councilor Hunt would be agreeable to call up. Councilor Hunt responded no. At the conclusion of discussion, there was no motion or action initiating a Council call-up of this issue. (See additional discussion on this issue - Item No. 7 of these minutes.) Legal Counsel Ramis advised Council does have the ability to call up this issue for review to make judgment on the development criteria and determine whether or not it had been fulfilled. In response to a question from Councilor Hawley, Community Development Director Murphy advised the Triangle master plan would be reviewed by the Planning Commission in January. 4. TRANSPORTATION UPDATES: A. MSTIP II. City Engineer Wooley noted the portion of Durham Road under the Oregon Department of Transportation's jurisdiction is scheduled for improvement. It is proposed that a three lane road be constructed, much the same as the portion of Durham Road that the City improved. This improvement would include bikepaths and sidewalks, and improvement at the lighted intersection at Boones Ferry. County funds will be used with a 1995 construction date; however, right-of-way acquisition has been difficult. In addition, the bridge widening and railroad crossing has also proven to be CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 4 difficult. Some adjustments have been made to the project. For example, the sidewalks will be narrower (six feet instead of eight feet), the bike lanes are wider, and the left turn lane is wider. There is no MSTIP funding available for undergrounding of utilities. Street closures will probably be needed for this construction. B. 1-5 and 216 Kruse Interchange. City Engineer Wooley reviewed the project plans to date. The State has had some cutbacks in funding and has altered the scope of the project. City Engineer presented the map of a proposed alternative. One major change would be that once on 72nd Avenue, you would not be able to access Kruse Way as you can at this time. The alternatives will be reviewed and discussed in the coming weeks. Council will review the alternatives and have discussions on how the proposals would work. The plan presented by the State has merit, but Council needs to study the impacts to 72nd Avenue. This issue will probably be back to City Council in early February. 5. EXECUTIVE SESSION: The Tigard City Council went into Executive Session at 8:09 p.m. under the provisions of ORS 192.660 (1) (d), (e), & (h) to discuss labor relations, real properly transactions, current and pending litigation issues. Council reconvened into regular session at 9:30 p.m. 6. WATER ISSUES CONSIDERATION (Item 5.2 on the Council agenda was considered at this time; 5.1, 5.3 and 5.4 were postponed to December 28, 1993.) City Administrator reviewed the Staff report for Agenda Item 5.2. ORDINANCE NO. 93-33 - AN ORDINANCE OF THE CITY OF TIGARD, OREGON, AUTHORIZING THE IMPOSITION OF SYSTEM DEVELOPMENT CHARGES, AND DECLARING AN EMERGENCY. Motion by Councilor Schwartz, seconded by Councilor Hunt, to adopt Ordinance No. 93-33. The motion was approved by a unanimous vote of Council present. (Mayor Edwards and Councilors Fessler, Hawley, Hunt and Schwartz voted "Aye.") 7. NON AGENDA ITEMS • Calendar notes: Dartmouth Ribbon Cutting Ceremony to be scheduled for either January 6 or 7. • Council consensus was to allow Metro to schedule a presentation to the City Council on the Real Estate Transfer Tax that Metro is pursuing. CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 5 • Legal Counsel Ramis reviewed quasi-judicial meeting procedures. At a recent public hearing Council was presented with new information during the hearing. Mr. Ramis advised that the hearing process is vulnerable to this occurrence. Sometimes an applicant may make some changes to the application in an attempt to remedy concerns presented during the Planning Commission hearing. The neighborhood may then be concerned that a different plan is being presented that what was before the Planning Commission. Items to consider to assure a better public hearing process: Give everyone time to prepare; continue hearing when necessary. Expand notice - give more detail to make it less difficult to understand. Council can limit the additions to the record. If a great deal of additional information is submitted, an option would be to remand to the Planning Commission. (If remanded to Planning Commission, renoticing must occur.) Mr. Ramis advised Council may place reasonable time limits on testimony. In addition, the Council should save their deliberation until the end (questions for clarification are acceptable). He advised that each witness does not have to know what an individual Council is thinking about the issue. With regard to notification, Mr. Ramis advised that notice is required to go only those persons in the notice area (specified in the Code). He said that if a person is at a hearing, then notice was received. • Second Review of Costco Wholesale (See Item No. 3). Mayor Edwards advised he had agreed to additional discussion on this item because of the concerns he shared with the removal of the trees on the site. Council discussion followed. The development proposed by Costco would make it necessary to eliminate most of the trees. City Administrator Reilly advised there are areas of the Code that are discretionary. In such areas, as in a planned development overlay, it is appropriate for Council to review if there are concerns that the policies of Council are not being fulfilled. Mayor Edwards stated he felt the direction with regard to tree protection were not being communicated and addressed given recent Council experience, discussion and concerns. CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 6 1 Council discussed other elements of the proposal: aesthetics, signage, landscaping, parking, and the building. Legal Counsel reiterated that the Council could confirm, reverse, or modify the conditions. Council can limit the issues; however, proper notification and a public hearing would be required. In an informal poll, the majority of Council (Mayor Edwards, Councilors Scwhartz and Hunt) did not support a call-up for review. Councilor Hawley indicated she would be willing to review the development. Councilor Kessler supported a call-up and would agree to limiting the points under review. 8. ADJOURNMENT: 10:15 p.m. Attest: Catherine Wheatley, City Recorder City of Tigard Date: c=1221.93 CITY COUNCIL MEETING MINUTES - DECEMBER 21, 1993 - PAGE 7 COMMUNITY NEWSPAPERS, INC. Legal G P.O. BOX 370 PHONE (503) 684.0360 Notice TT 77 3 8 BEAVERTON, OREGON 97075 Legal Notice Advertising *City of Tigard Y ❑ Tearsheet Notice 13125 SW Hall Blvd. •Tigard,Oregon 97223-8199 • ❑ Duplicate Affldayk_ o The following reacting hlghlighls am published for ypttr lot'orm„at>i;:Full agendas may be obtained from the City Recorder' I3125'S.W. Hall Boulevard, Tigard, Oregon 97223, br by calling 634-4171: CITY CO RV ~ 1 - >+mnrr~ AFFIDAVIT OF PUBLICATION PFCEMBER 21 199 Tt(3ARRD CITY HAIL--rua war r STATE OF OREGON, )as. COUNTY OF WASHINGTON, )ss. I, Kathy Snyder Council Mccdng:lbwn Hall Room (6.30 p.m,) being first duly sworn, depose and say that I am th8 Advertising Director, or his principal clerk, of the Tigard Times ChamberofCommerceBuilding-_Discussion &•Comideration a newspaper of general circ,Vikt is defined in ORS 193.016 and 193.020; published at 99 in the Water IssU63 aforesaid county and state; that the city Counei 1 Tttg - . Local Contract Review Board Meeting a printed copy of which is hereto annexed, was published in the entire issue of said newspaper for ONE successive and Executive Session: The Tigard City Council may go into Execu consecutive in the following issues: live Session under the provisions of ORS 192.660 (1) (d). (e). & (h) to discuss labor relations, real property transactions, current December 16,1093 and pending litigation &M" , M738 - Publish December 16. 1993. : + • . Subscribed and sworttor. me this mb r ( . OrfICIAL SEAL IPA ~~'neal!~~ ROBIN A. BURGESS QjlJj NOTARY PUBLIC - OREGON Notarybile for Oregon ~T~Ta COA1lAISS!ON N0, 024552 My Commission Expires: MY COMMISSION EXPIRES MAY 16.1997 AFFIDAVIT _ CITY OF TIGARD, OREGON AFFIDAVIT OF POSTING In the Matter of the Proposed yrCl "0 q STATE OF OREGON ) County of Washington ) ss. City of Tigard ) I, begin first duly sworn, on oath, depose an say: That I posted in the following public and conspicuous places, a copy of Ordinance Number (s) -T1 1 _ 3 3 \ which were adopted at the Council Meeting dated copy(s) of said ordinance(s) being hereto attached and by reference made a part hereof, ~ on the 0:1 day of Q ~ 19 d1 1. Tigard Civic Center, 13125 SW Hall Blvd., Tigard, Oregon 2. West One Bank, 12260 SW Main Street, Tigard, Oregon 3. Safeway Store, Tigard Plaza, SW Hall Blvd., Tigard, Oregon 4. Albertson's Store, Comer of Pacific Hwy. (State Hwy. 99) and SW Durham Road, Tigard, Oregon 19 Subscribed and sworn to before me this day of AAA OF~ICIALSZAL Notari u lic for Oregon t NOTARY PUBLIC-OREGON COMMISS!OIV N0.006513 My Commission Expires: W\s 4S MY COMMISSION EXPIRES MAY 5, 1995 5 1ogin\jo\affp0st ` ORDINANCE NO. Q3- 33 AN ORDINANCE OF THE CITY OF TIGARD, OREGON, AUTHORIZING THE IMPOSITION OF SYSTEM DEVELOPMENT CHARGES, AND DECLARING AN EMERGENCY. WHEREAS, the cities of Tigard, King City and Durham withdrew from the Tigard District effective July 1, 1993; and WHEREAS, Tigard, King City, Durham and the remnant Tigard Water District formed the Southeast Washington County Joint Water Agency (SEWCJWA) by intergovernmental agreement pursuant to ORS Chpt. 190; and WHEREAS, SEWCJWA imposed the system development charges adopted by the Tigard Water District pursuant to ORS 190.030; and WHEREAS, King City, Durham, Tigard and the Tigard Water District agree that it is in their best interest if they were to be an integrated part of a water supply network receiving water service from Tigard's city water department; and WHEREAS, the intergovernmental agreement creating SEWCJWA will terminate on December 31, 1993 and thereafter Tigard will provide water service to King City, Durham and the remnant Tigard Water District; and WHEREAS, Tigard, King City and Durham all wish to adopt system development charges consistent with those adopted by the Tigard Water District; and WHEREAS, this ordinance will also authorize the imposition of system development charges after adoption of an appropriate methodology for capital improvements other than water system improvements; now, therefore: THE CITY OF TIGARD ORDAINS AS FOLLOWS: Section 1. Chapter 3.24, Systems Development Charges, is added to the Tigard Municipal Code and is attached hereto as, Exhibit "A". Section 2. The City Council finds that the collection of system development charges is vital to making capital improvements which benefit the health and safety of the City's residents; therefore an emergency is declared and this ordinance shall take effect upon its passage. Section 3. The invalidity of a Section or subsection of this Chapter shall not affect the validity of the remaining Sections or subsections. Section 4. The City Council determines that any fees, rates or charges imposed by this ordinance are not a tax subject to the property tax limitations of Article XI, Section 11 (b) of the Oregon Constitution. By ! / /1 Q n i i'D')oU 5. vote of all Council members present after being read by number and title only, this o7/~ day of4,0-Cern&1L t 1993. Catherine Wheatley, City 90corder i ~ APPROVED: This ~l day of 1993. Gerald R. Edwards, Mayor App oved as to form: C3,t1y Attorney 2:~?Cem &L t~~r3 Date achXdptd\jmc\J-\sdctiV ord 17 EXHIBIT "A" Chapter 3.24 Systems Development Charges 3.24.010 Purpose. This Chapter is intended to provide authorization for system development charges for capital improvements pursuant to ORS 223.297 - 223.314 for the purpose of creating a source of funds to pay for the installation, construction, and extension of capital improvements. These charges shall be collected at the time of the development of properties which increase the use of capital improvements and generate a need for those facilities. The provisions of this Chapter are not applicable to the parks system development charge established by the Tigard Municipal Code Chapter 3.16 and the street system development charge established by the Tigard Municipal Code Chapter 3.20. 3.24.020 Scope. The system development charges imposed by this Chapter are separate from and in addition to any applicable tax, assessment, charge, or fee otherwise provided by law or imposed as a condition of development. 3.24.030 Definitions. Capital Improvements. Facilities or assets used for: (1) Water supply, treatment and distribution; (2) Sewage and wastewater collection, transmission, treatment and disposal; or (3) Drainage and flood control; Development. Conducting a building or mining operation, making a physical change in the use or appearance of a structure or land, or creating or terminating a right of access. Improvement fee. A fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to Section 3.24.040 of this Chapter. Land Area. The area of a parcel of land as measured by -projection of the parcel boundaries upon a horizontal plane with the exception of a portion of the parcel within a recorded right- of-way or easement subject to a servitude for a public street or scenic or preservation purpose. ORDINANCE NO. Page 1 Owner. The owner(s) of record title or the purchaser(s) under a recorded sales agreement, and other persons having an interest of record in the described real property. Parcel of land. A lot, parcel, block or other tract of. land that is occupied or may be occupied by a structure or structures or other use, and includes the yards and other open spaces required under the zoning, subdivision, or other development Chapters. Permittee. The person to whom a Building Permit, Development Permit, Permit to Connect to the sewer or water system or Right-of- Way Access Permit is issued. Qualified public improvement. A capital improvement that is: (1) Required as a condition of development approval; (2) Identified in the plan adopted pursuant to Section 3.24.070 of this Chapter; and either, (3) Not located on or contiguous to a parcel of land that is the subject of the development approval; or, (4) Located in whole or in part on or contiguous to property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related. Reimbursement fee. A fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to Section 3.24.040 of this Chapter. System development charge. A reimbursement fee, an improvement fee or a combination thereof assessed or collected at the.time of increased usage of a capital improvement, at the time of issuance of a development permit or building permit, or at the time of connection to the capital improvement. "System development charge" includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with water and sewer facilities. "System development charge" does not include fees assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision. 3.24.040 System Development Charge Imposed; Method For Establishment Created. (1) Unless otherwise exempted by the provisions of this Chapter or other local or state law, a systems-development charge is hereby imposed upon all development within the city, upon the ORDINANCE NO. Page 2 act of making a connection to the city water or sewer system within, the city, and upon all development outside the boundary of the city' that connects to or otherwise uses the sewer or water facilities of the city. (2) Systems development charges shall be established and may be revised by resolution of the city council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount. of the charge and, if the charge applies to a geographic area smaller than the entire city, the geographic area subject to the charge. 3.24.050 Methodology. (1) The methodology used to establish the reimbursement fee shall consider the cost of the then-existing facilities, prior contributions by then-existing system users, the value of unused capacity, rate-making principles employed to finance publicly owned capital improvements, and other relevant. factors identified by the council. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then-existing facilities. (2) The methodology used to establish the improvement fee shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and other relevant factors identified by the council. (3) The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution. 3.24.060 Authorized Expenditures. (1) Reimbursement fees shall be applied only to capital improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness. (2) (a) Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to demands created by current or projected development. (2) (b) A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the Systems Development Charge Funding Project Plan adopted by the city pursuant to Section 3.24.070 of this Chapter. (3) .Notwithstanding subsections (1) and (2) of this Section, system development charge revenues may be expended on the direct costs of complying with the provisions of this Chapter, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge funds. ORDINANCE NO. Page 3 3.24.070 Expenditure Restrictions. (1) System development charges shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements. (2) System development charges shall not be expended for costs of the operation or routine maintenance of capital improvements. 3.24.080 Project Plan. The council shall adopt by resolution the Systems Development Charge Funds Project Plan. This Plan: ' (1) Lists the capital improvements that may be funded with improvement fee revenues; and (2) Lists the estimated cost and time of construction of each improvement. In adopting this plan the city council may incorporate by reference all or a portion of any public facilities plan, master plan, capital improvements plan or similar plan that contains the information required by this Section. The city may modify this project plan at any time through the adoption of an appropriate resolution. There may be a separate plan for each system, or the plan may include improvements from more than one system. 3.24.090 Collection of Charge. (1) The systems development charge is payable upon issuance of: (a) A building permit; (b) A development permit for development not requiring the issuance of a building permit; (c) A permit to connect to the water system; (d) A permit to connect to the sewer system; or (e) A right-of-way access permit. The resolution which sets the amount of the charge shall designate the permit or permits to which the charge applies. (2) If development is commenced or connection is made to the water system, sewer system or storm sewer system without an appropriate permit,. the system development charge is immediately payable upon the earliest date that a permit was required. (3) The City Administrator or the designee shall collect the applicable system development charge from the permittee. (4) The City Administrator or the designee shall not issue such permit or allow connection until the charge has been paid in full, unless provision for installment payments has been made pursuant to Section 3.24.100 of this Chapter, or unless an exemption is granted pursuant to Section 3.24.110 of this Chapter. ORDINANCE NO. Page 4 3.24.100 Installment Payment. (1) When a system development charge is due and payable, the permittee may apply for payment in twenty (20) semi-annual installments, secured by a lien on the property upon which the development is to occur or to which the utility connection is to be made, to include interest on the unpaid balance, if that payment option is required to be made available to the permittee by ORS 223.207. (2) The City Administrator or designee shall provide application forms for installment payments, which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors. (3) A permittee requesting installment payments shall have the burden of demonstrating the permi.ttee's authority to assent to the imposition of a lien on the property and that the interest of the permittee is adequate to secure payment of the lien. (5) The City Administrator or designee shall docket the lien in the lien docket. From that time, the city shall have a lien upon the described parcel for the amount of the system development charge, together with interest on the unpaid balance at the rate established by the council. The lien shall be enforceable in the manner provided in ORS Chapter 223, and shall be superior to all other liens pursuant to ORS 223.230. 3.24.110 Exemptions. r a (1) Structures and uses established and existing on or before the effective date of the resolution which sets the amount of the system development charge are exempt from the charge, except water and sewer charges, to the extent of the structure or use existing on that date and to the extent of the parcel of land as it is constituted on that date. Structures and uses affected by this subsection shall pay the water or sewer charges pursuant to the terms of this Chapter upon the receipt of a permit to connect to the water or sewer system. (2) Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the Building code adopted pursuant to §14.04 of this Code, are exempt from all portions of the system development charge. (3) An alteration, addition, replacement or change in use that does not increase the parcel's or structure's use of a capital improvement are exempt from all portions of the system development charge. 3.24.120 Credits. (1) When development occurs that is subject to a system development charge, the system development charge for the existing ORDINANCE NO. Page 5 use, if applicable, shall be calculated and if it is less than the system development charge for the use that will result from the development, the difference between the system development charge for the existing use and the system development charge for the proposed use shall be the system development charge. If the change in the use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required, however, no refund or credit shall be given unless provided for by another subsection of this Section. (2) A credit shall be given to the permittee for the cost of a qualified public improvement upon acceptance by the city of the improvement. The credit provided for in this subsection shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements may be granted only for the cost of that portion of such improvement that exceeds the city's minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for---redit under this subsection. The request for credit shall be filed in writing no later than 60 days after acceptance of the improvement by the city. (3) When establishing a methodology for a system development charge, the city may provide for a credit against the improvement fee, the reimbursement fee, or both, for capital improvements constructed as part of the development which reduce the developments demand upon existing capital improvements and/or the need for future capital improvements, or a credit based upon any other rationale the council finds reasonable. (4) When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project. Credit shall not be transferable from one development to another. (5) Credits shall not be transferable from one type of system development charge to another. (6) Credits shall be used within 10 years from the date the credit is given. 3.24.130 Notice. The city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge. Written notice shall be mailed to persons on the list at least 45 days prior to _the first hearing to adopt or amend a system development charge, and the methodology supporting the adoption or amendment shall be available at least 30 days prior to the first hearing to adopt or amend. The failure of a person on the list to receive a notice ORDINANCE NO. Page 6 that was mailed shall not invalidate the action of the city. The city may periodically delete names from the list, but at least 30 days prior to removing a name from the list must notify the persons whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list. 3.24.140 Segregation and Use of Revenue. (1) All funds derived from a particular type of system development charge are to be segregated by accounting practices from all other funds by the city. That portion of the system development charge calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in this Chapter. (2) The City Administrator shall provide an annual accounting, based on the city4s fiscal year, of system development charges showing the total amount of system development charge revenues collected for each type of charge and the projects funded from each account. 3.24.150 Appeal Procedure. (1) A person aggrieved by a decision required or permitted to be made by the City Administrator under this Chapter or a person challenging the propriety of an expenditure of system development K charge revenues may appeal the decision or the expenditure to the city council by filing a written request with the City Administrator describing with particularity the decision of the City Administrator or the- expenditure from which the person appeals. (2) An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. Appeals of any other decision must be filed within thirty (30) days of the date of the decision. (3) The council shall determine whether the city Administrator's decision or the expenditure is in accordance with this Chapter and the provisions of ORS 223.297-.314 and may affirm, modify, or overrule the decisions. If the council determines that there has been an improper expenditure of system development charge revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year of the date of that determination to the credit of the account or fund from which it was spent. The decision of the council shall be reviewed only as provided in ORS 34.010 to 34.100 and not otherwise. (4) A legal action challenging the methodology adopted by the council pursuant to Sections 3.24.040 and 3.24.050 of this Chapter shall not be filed later than sixty (60) days after the adoption. A person shall contest the methodology used for calculating a ORDINANCE NO. Page 7 system development charge only as provided in ORS 34.010 to 34.100, and not otherwise. 3.24.160 prohibited Connection. No person may connect to the water or sewer systems of the city unless the appropriate system development charge has been paid. 3.24.170 Penalty. Violation of this Chapter is a class A infraction punishable by a fine not to exceed $500. 3.24.180 Construction. The rules of statutory construction contained in ORS Chapter 174 are adopted and by this reference made a part of this Chapter. ach\dprd\jmc\swa\sdcdgrd.em ORDINANCE NO. Page 8 Council Agenda Item No. MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor & Counce FROM: Cathy Wheatley, City RMrder DATE: December 16, 1993 SUBJECT: Costco Wholesale Discussion The Notice of Final order was mailed to you in your council mail last week. The deadline for filing an appeal is 3:30 p.m., December 22, 1993. If you need additional information, please do not hesitate to call me. cwc1216.93 CITY OF TIGARD Washington, County NOTICE OF FINAL ORDER - BY PLANNING COMMISSION 1. Concerning Case Number(s):SDR 93-0018/PDR 93-0010 2. Name of Owner: Costco Wholesale Name of Applicant: Same 3. Address 10809 120th Avenue NE City Kirkland State WA Zip 98033 4. Address of Property: Southeast corner of the intersection of SW Pacific Highway and Highway 217. Tax Map and Lot No(s).% 1Si 36CD, tax lots 2200, 2300, 2500, 2600, 2700, 2800, 2900, 3000, 3100, 3200, 3300, 3400, 3500, 3600 3700, 3800, 3900, 4.000, 4100, 2S1 IBA, tax lot 200 and 2S1 1BB tax lot 1201 5. Request: A request for Site Development Review/Planned Development _approval to allow construction of a 155,415 square foot commercial wholesale retail building APPLICABLE REVIEW CRITERIA: Community Develo ment Code Chapters 18.62.050, 18.80, 18.90, 18.100, 18.102, 18.106 18.108, 18.114, 18.120, and 18.164. Zone: C-G(PD) (General Commercial, Planned Development) The C-G zoning designation allows public agency and administrative services, public support facilities, professional and administrative services, financial, insurance, and real estate services, business support services, and eating and drinking establishments among other uses. 6. Action: Approval as requested X Approval with conditions Denial 7. Notice: Notice was published in the newspaper, posted at City Hall, and mailed to: X The applicant and owner(s) X Owners of record within the required distance X The affected Citizen Involvement Team Facilitator X Affected governmental agencies 8. Final Decision: THE DECISION SHALL BE FINAL ON December 22, 1993 UNLESS AN APPEAL IS FILED. The adopted findings of fact, decision, and statement of conditions can be obtained from the Planning Department, Tigard City Hall, 13125 SW Hall, P.O. Box 23397, Tigard, Oregon 97223. 9. Appeal: Any party to the decision may appeal this decision in accordance with 18.32.290(B) and Section 18.32.370 which provides that a written appeal may be filed within 10 days after notice is given and sent. The appeal may be submitted on City forms and must be accompanied by the appeal fee ($315.00) and transcript costs, (varies up to a maximum of $500.00). The deadline for filing of an appeal is 3:30 p.m. December 22, 1993 10. Questions: If you have any questions, please call the City of Tigard Planning Department, 639-4171. CITY OF TIGARD PLANNING COMMISSION FINAL ORDER NO. 93-17PC A FINAL ORDER INCLUDING FINDINGS AND CONCLUSIONS APPROVING AN APPLICATION FOR DEVELOPMENT OF A 155,415 SQUARE FOOT COMMERCIAL RETAIL BUILDING BY COSTCO. The Tigard Planning Commission has reviewed the applicant's plans and narrative materials, comments of reviewing agencies, the Planning Division's staff report, and recommendations for the application described below. The Commission held a public hearing to receive testimony on this application on December 6, 1993. The Commission has based its decision on the facts, findings, and conclusions noted below. A. FACTS 1. General Information Site Development Review SDR 93-0018 Planned Development PDR 93-0010 A development approval request for Site Development Review and Planned Development approval to allow the construction of a 155,415 square foot commercial retail building and related facilities. Applicant: Costco Wholesale 10809 120th Avenue, NE Kirkland, WA 98003 Agent: W and H Pacific 8405 SW Nimbus Avenue P. O. Box 80040 Portland, OR 97280 Owner: Costco Wholesale Location: The southwest corner of the SW Pacific Highway and Dartmouth Street intersection (WCTM 1S1 36 CD, tax lots 2200, 2300, 2400, 2500, 2600, 2700, 2800, 2900, 3000, 3100, 3200, 3300, 3400, 3500, 36000, 3700, 3800, 3900, 4000, 4100; 2S1 IBA, tax lot 200; and 2S11BB, tax lot 1201). Applicable Review Criteria: Community Development Code Chapters 18.62, 18.80, 18.90, 18.96, 18.100, 18.102, 18.106, 18.108, 18.114, 18.120, 18.150, and 18.164. 2. Backaround Information The Tigard Comprehensive Plan and zone designations for the northwestern portion of the site adjacent to SW 79th Avenue (Twin Oaks Lane subdivision) were changed from Low Density Residential, R- 3.5 to General Commercial, C-G in 1988. The remainder of the site has been zoned for General Commercial use since the Comprehensive Plan was adopted in 1983. This site is within the area known as the Tigard Triangle. The Triarcle has been the focus of a planning effort over the past two years. There is presently a draft Tigard Triangle Specific Plan that is undergoing public review. The use proposed for this site is PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 1 consistent with those that would be allowed by the Specific Plan. The Specific Plan also addresses site design, landscaping, transportation and access, open space and pedestrian trails. 3. Vicinity Information J The property is bordered by SW Pacific Highway, a veterinary clinic, and restaurant on the north and northwest. Commercial development is on the north side of SW Pacific Highway. Highway 217 abuts the western boundary of the property. SW Dartmouth Street, which is presently under construction, borders the property on the east. Undeveloped commercial property lies on the east side of the street. SW Pacific Highway is an arterial street that is under the jurisdiction of the Oregon Department of Transportation (ODOT). A frontage road is between the street and the subject property. There are no sidewalks on the SW Pacific Highway frontage. SW Dartmouth Street is designated as - a major collector. Improvements are to include five travel lanes, sidewalks, and bicycle lanes. In addition, a landscaping concept has been developed for the street in conjunction with the Tigard Triangle planning effort. Tri-Met bus route #12 provides service along SW Pacific Highway with stops at the northwest corner of the site and east of the SW 78th/Dartmouth intersection. 4. Site Information The site consists of 22 separate parcels that are proposed to be consolidated in advance of this development. Nineteen of the 22 parcels are part of Twin Oaks Lane subdivision located in the northwest portion of the site. These lots are served by SW 79th Avenue, a public street. The remainder of the property is divided into larger parcels in Palmer Acres subdivision. This portion of the property is undeveloped, including a 20-foot wide public road right-of-way which borders the east side of Twin Oaks Lane subdivision. Twin Oaks Lane subdivision has a large number of mature trees which are shown on the applicant's tree survey. Other trees are generally located near the perimeter of the site. The remainder of the northern part of the property is covered with grass. A wetland area associated with Red Rock Creek covers the majority of the southern half of the property. This wetland has been identified in the City's inventory (Exhibit A). 5. Proposal Description The applicant proposes to build a 155,415 square foot retail building near the southwest corner of the property. The remainder of the site will be used for parking, driveways, loading, and landscaping. The wetland area on the south end of the site will be re=ained. Two driveways on SW Dartmouth Street are shown. The northern driveway is proposed to be limited to right turn movements. The southern driveway will allow all turning movements, and it is anticipated by the applicant's traffic engineer that a traffic PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 2 signal will be needed in the near future. The only pedestrian access to the store is a sidewalk along the southern driveway. An extensive amount of site grading is proposed. The site presently drops down steadily from an elevation near SW Pacific Highway of approximately 220 feet to the wetland at 160 feet. The applicant proposes to cut into the northern half of the site and fill the southern half to provide a level area for the building and parking lot. This filling will require a retaining wall on the south side j of the parking and loading area that will reach a maximum height of 26 feet. No development is proposed in the wetland area. This grading will also necessitate retaining walls along thy: SW Pacific Highway frontage and portions of the western boundary of :he j project. The site plan identifies three maples and one birch tree that will be retained in the northwest corner of the site. All other trees, with the exception of the wetland area, will be removed. The applicant indicates that 12 trees may be suitable to remove and transplant. The site plan has 849 parking spaces of which 19 are for handicapped use. The majority of these spaces are located to the north and east of the building. The handicapped spaces are adjacent to the east side of the building. Truck loading spaces for 5 trucks are located on the south side of the building. Twenty-two bicycle parking spaces are shown at the southeast corner of the building, near the truck loading area. The main driveways on the site are proposed to run along the north and east side of the building. A driveway also loops around the west and south sides of the building. In addition to the one sidewalk between SW Dartmouth Street and the store, sidewalks are provided adjacent to the east, north, and west sides of the building. The sidewalk widths range from 5 to 14 feet. 6. Aaency and Neighborhood Organization Comments The Engineering Department has the following comments: The applicant proposes to construct a 155,415 square foot commercial wholesale retail building between S.W. Pacific Highway and S.W. Dartmouth Street. The northeast side of the site is along a frontace road to S.W. Pacific Highway, a state highway. The applicant has not proposed any access along this frontage and no comments have been received from the State Highway Division pertaining to this application. a. Streets: The frontage along S.W. Dartmouth Street has been improved with a curb. Any remaining improvements required to fully improve the frontage should be installed. S.W. Dartmouth Street has been constructed within a proposed right-of-way remaining to be publicly dedicated. The street should be open to traffic before occupancy of the proposed building is permitted. The applicant has applied to vacate the existing right-of-way of S.W. 79th Avenue and proposes to remove adjacent houses. To ensure that all easements are eliminated, the plat creating PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 3 the S.W. 79th Avenue right-of-way should be vacated as well. A traffic study has been submitted by the applicant. The study concludes that the pavement width already constructed on Dartmouth Street will be adequate in the long term and that the proposed driveways will function at an adequate level of service in the long term, except that a traffic signal may be needed on SW Dartmouth Street at the south driveway within five years. These conclusions are supported by work performed for the City by an independent traffic engineering consultant who is working on the Tigard Triangle Study. The applicant should share in the funding of the traffic signal in the future when the signal is needed. In reviewing traffic, we also looked at future access to adjoining parcels. The parcel to the north (currently Alexander's Restaurant) is located very close to the intersection of SW Dartmouth Street and Pacific Highway. In the future, when the parcel is redeveloped, direct access to this parcel should be restricted or eliminated to reduce conflicts with traffic at the major intersection and at the north driveway to Costco. The only alternative location for access will be through the Costco site. Therefore, the applicant should be required to provide for a shared access in the future. Currently, the site does not have legal access to SW Dartmouth Street. However, a lot line adjustment previously approved by the City would resolve this problem. Therefore, evidence should be provided that the lot line adjustment has been completed and properly recorded prior to issuance of building permit for this project. b. Sanitary Sewer: Sanitary Sewer service is provided by an existing public line from Pacific Highway, that passes through the site, then continues along Red Rock Creek. The portion of the line passing through the site is proposed to be relocated. A separate application is required to vacate this line's easement. c. Surface Water Run-off: Storm water run-off will be collected in a private drainage system and directed to a private on-site storm water quality structure that would discharge to a 25 foot wide undisturbed corridor of a delineated wetlands along the south side of the site. The Unified Sewerage Agency has established and the City has agreed to enforce (Resolution and Order No. 91-47) Surface Water Management Regulations requiring the construction of on-site water quality facilities or fees in-lieu of their construction. The on-site facility should be required since it appears to be feasible and has been proposed by the applicant. The delineated wetlands along southwest Red Rock Creek are sensitive lands as defined by USA Resolution and order No. 91-47 requiring a undisturbed corridor of a minimum width of 25 feet along the wetlands. The applicant has shown the required undisturbed corridor and has not proposed any encroachments within it. PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 4 The Building Inspection Division has the following comments: a. Prior to issuance of the building permit, demolition permits for all existing structures must be obtained. b. All existing underground utilities must be removed during site work operations. C. A geotechnical report shall be submitted to the Division with plans for the site work. The report shall include specific recommendations and specifications for the rockery walls which are consistent with the "Standard Rockery Construction Guidelines", published by the Association of Rockery Contractors or other approved standard. Tigard Police Department would like to see additional details regarding the exterior lighting proposed for the west side of the building. Portland General Electric and Northwest Natural Gas have no objections to the proposal. General Telephone indicates that the developer is responsible for providing and placing all conduit and trenches according to GTE specifications. The applicant should allow 45-60 days from GTE Engineering completion to GTE construction completion. No other comments have been received. B. MAJOR ISSUES This portion of the report outlines the major issues pertaining to the proposal. j This summary is followed by findings and conclusions in Exhibit B. 1. Consolidation of property The application first requires the combination of the 22 parcels into one property in order to build the Costco store and facilities. In addition, the street right-of-way for SW 79th Avenue and the undeveloped 20 foot wide right-of-way must be vacated prior to development. 2. Clearing and site grading The applicant proposes a significant amount of grading for the entire site. This is the primary reason that none of the significant trees on the site are proposed to be saved (except for 12 which may be transplanted). This grading will completely transform the site. The applicant indicates that the grading is necessary to provide a flat surface for the 3 1/2 acre building and a ger.-le grade for the parking lot. Though the Community Development Code standards may permit this type of site modification, the Planned Development provisions of the Community Development Code encourage the retention of existing trees and topography. Section 18.80.120 A. 3. a. (i) states: The streets, buildings, and other site elements shall be designed and located to preserve the existing trees, topography, and natural drainage to the greatest degree possible. PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 5 Subsection (v) states: Trees with a six inch caliper measured at four feet in height from ground level, shall be saved where possible. While the applicant considered altrnate building locations in the pre-application conferences, the applicant has not presented any information or findings to show how the proposed site plan conforms with these criteria. Alternate building locations and parking lot design alternatives were not part of the application submittal. The tree survey presented by the applicant does not appear to include all of the trees over six inches on the site. For example, Lot 1 of Twin Oaks Lane subdivision shows one tree of 30 inches in the rear yard when there is also a second tree of nearly equal size. 3. Access The Engineering Department comments indicate that the vehicular access to the site has been properly considered. Future joint access to the Alexander's Restaurant property should be provided. Pedestrian access to and within the site should be amended to provide improved circulation and safety. It is understood that the majority of customers will drive because of the size and volume of merchandise they tend to buy. However, accommodating employees and customers by foot, bicycle, or transit should not be ignored. This is especially important because of the proximity of the site to residential development on the north side of SW Pacific Highway and to the east. Section 18.80.120 A. 3, h. (ii) (c) states that for public transit, hard surface paths should be provided "connecting the development to the waiting area." The proposed site plan offers no connections to the two bus stops on Route #12. The development should provide improved linkages between the building and these stops. Except for the front entry area, pedestrian access around the building is provided by a 5-foot wide sidewalk that is between the building and parking spaces or driveway. The major access drives separate the parking lot from the store, requiring patrons to cross the busiest driveways without a crosswalk. No sidewalks are provided within the parking area. This situation creates congestion and is potentially unsafe. The site plan should be amended to encourage motorists to arrive, park, and leave without driving past the entrance and associated pedestrian traffic and to encourage the pedestrian use of crosswalks rather than "jaywalking" along the length of the main driveway. In order to improve pedestrian access and safety, the following amendments are recommended: - Provide sidewalks to the store from SW Pacific Highway. A link should be provided to the bus stop at the northwest corner of the site. - Provide a sidewalk heading east from the store entrance to SW Dartmouth Street. - Provide sidewalk widths that will have a minimum amount of usable width of 8 feet, where cars park up to the curb PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 6 adjacent to the building. - Provide raised crosswalks to delineate these pedestrian areas and to slow traffic. Reorient the parking aisles in the front (east) of the site so that they run north-south rather than east-west. The aisles should be designed to encourage motorists to avoid driving near the building entrance. In addition, a sidewalk and crosswalk should be provided which heads east across the lot towards SW Dartmouth Street. This sidewalk would serve as the main pedestrian walkway between the parking spaces in front the building entrance. 4. Parking Of the 849 parking spaces proposed, only 389 are required by the Code using the "general retail sales" category, which requires one space for every 400 square feet of building area. If approximately 1/3 of the building is calculated as "food and beverage sales", one might make a case for a parking requirement of about 515 spaces. Because of the nature of the business, it is recognized that exceeding the Code requirement will be necessary during peak business periods to accommodate the customers. However, exceeding the Code standards by 300 to 460 spaces may be somewhat unnecessary. Some adjustments to the site plan to provide increased amenities (such as trees and screening) at the expense of some parking is justified. The handicapped parking spaces are appropriately located. However, the 5-foot wide sidewalk serving them is inadequate, particularly considering that after cars pull in and overhang the sidewalk, the useful width is less than 4 feet. To allow for comfortable handicapped usage and two-way pedestrian (and shopping cart) traffic, a minimum usable width of 8 feet should be provided. The applicant proposes 22 bicycle parking spaces far from the building entrance. Twenty-six spaces are required based on the 389 vehicle parking standard. The plan should be amended to include 26 spaces as required by the Code and to distribute the bicycle parking throughout the site so that it is easy to see and use by customers and employees. At least half of the required spaces should be located near the building entrance, preferably under the building canopy. Employee bicycle parking can be provided indoors if an area is designated for this use. 5. Loading For this size facility, the Code requires that 8 loading spaces be provided. The plan show 5 spaces. The applicant contends that only 5 spaces are necessary. The reduction may be justified, however this devarture from City standards may only be considered with a variance application. Since the applicant did not request a variance, the site should be amended to have 8 loading spaces, or a separate variance application must be submitted for City approval. 6. Landscaping and screening Because of the site grading noted above, virtually all of the existing vegetation is proposed to be removed for the 155,415 square foot building, large parking lot, and some landscaped areas. The landscaping concept presented is consistent with the basic Code PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 7 standards for landscaped area and parking lot landscaping. A final landscaping plan should be submitted to confirm compliance with Code standards. In addition to these general standards, screening and buffering are important because of the extent of the grading, vegetation removal, and the scale of the project. A building and parking area of the size proposed can have a very imposing presence. Section 18.80.120 A. 4. requires that thought be given to screening of buildings, rooftop equipment, parking lots, and loading areas. In order to provide improved visual screening, the following changes are recommended: - The applicant should submit a revised landscape pl:.. to incorporate additional plant material to adequately scree.. the westside of the building in the twenty foot landscape buf=er. - omit some of the parking spaces in the northwest corner of the lot to preserve the significant trees (e.g., 20" maple and 30" London plane tree) in this corner and to possibly provide a pedestrian access to SW Pacific Highway in this location. - To compensate for the loss of a 20" maple and 30" London Pine tree in the northwest corner of the lots, the applicant should provide at least six 3" caliper trees in the same general v_cinity. - Provide street trees along the SW Pacific Highway frontage. - Provide landscaped islands with trees that have mature heights over 30 feet near the east, north, and west sides of the building. Also, a landscaped area for shrubs, etc. could be provided on the east and north building faces. These were considered by the Commission and were deleted because of applicant's statements relative to maintenance and affect on parking realignment. These features are intended to soften the mass of the building, help screen rooftop equipment, and help focus attention toward the entrance and wall signs. - submit a plan for the parking lot trees that will provide a canopy when they mature. The view corridors for signs should be identified by the applicant so that the trees selected provide the maximum amount of screening while allowing visual access to the wall signs after the trees mature. - Provide trees and other appropriate landscaping along the base of the retaining wall on the south side of the project. 7. Open space and trail corridors Because the southern portion of the property is primarily wetland, it must be left in its present state because of its environmental and wildlife value. The only development sought by the City for this area is a pedestrian pathway that links the SW Dartmouth Street with the residential areas and Phil Lewis Elementary School to the south. Detailed planning for this pathway has not been completed, but it is important to preserve the ability to provide this pedestrian route in the future. It is recommended that a temporary easement be applied to the southern portion of the property for a pedestrian pathway with the understanding that it will expire when a specific PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 8 easement alignment is selected and dedicated. In addition, the applicant should be requested to place a monetary contribution toward the construction of this pathway. This could be an escrow account that is returned to the applicant if the pathway is not constructed within a specified time, such as five years. C. RECOMMENDATIONS The Planning staff recommends approval of SDR 93-0018 and PDR 93-0010 subject to the following conditions. Unless otherwise noted, all conditions shall be satisfied prior to issuance of building permits. 1. All existing easements, except those required for facilities that are to remain, and rights of way within the site shall be vacated. 2. Lot line adjustment approved by MIS 93- 05 be completed and recorded. 3. Right-of-way shall be dedicated to the public along the frontage of the proposed S.W. Dartmouth Street right-of-way to increase the total of the dedicated and proposed right-of-way to 47 feet from the centerline. The description shall be tied to the centerline of the currently proposed right-of-wav of S.W. Dartmouth Street in accordance with the approved plans for L=D No. 42. 4. The applicant shall record documents that provide for the parcels to the north (WCTM 1S1 36CD 1800 & 1900) to be able to use the driveways of the subject parcel for ingress and egress to S.W. Dartmouth Street. 5. Standard street improvements, including concrete sidewalk, and driveway apron, shall be installed along the S.W. Dartmouth Street frontage. Improvements shall be designed and constructed to major collector street standards and shall conform to the alignment of existing adjacent improvements. a. A concrete sidewalk shall be installed to arterial street standards along the SW Pacific Highway frontage. 6. An agreement shall be executed, on forms provided by the City, which waives the property owner's right to oppose or remonstrate against a future local improvement district formed to install a traffic signal or otherwise ':.prove S.W. Dartmouth Street. 7. Two (2) sets of detailed public improvement plans and profile construction draw--ngs s.:all be submitted for preliminary review to the Engineering Department. Seven (7) sets of approved drawings and one (1) itemized construction cost estimate, all prepared by a Professional Engineer, shall be submitted for final review and approval (NOTE: these plans are in addition tc any drawings required by the Building Division and should only include sheets relevant to public improvements. 8. Building permits will not be issued and construction of proposed public improvements shall not commence until after the Engineering Department has reviewed and approved the public improvements plans and a street opening permit or construction compliance agreement has been executed. A 100 percent performance assurance or letter of commitment, a developer- engineer agreement, the payment of a permit fee and a sign installation/streetlight fee are required. 9. The proposed privately operated and maintained sanitary sewer and storm drainage system plan-profile details shall be provided as part of the public improvement plans. PLANNING COMMISS=ON FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 9 10. The applicant shall demonstrate that storm drainage run-off can be discharged into the existing drainageway without significantly impacting properties downstream. ? 11. Sanitary sewer and storm drainage details shall be provided as part of the public improvement plans. Calculations and a topographic map of the storm drainage basin and sanitary sewer service area shall be provided as a supplement to the public improvement plans. Calculations shall be based on full development of the serviceable area. The location and capacity of existing, proposed, and future lines shall be addressed. 12. The applicant shall provide connection of proposed building to the public sanitary sewerage system. A connection permit is required to connect to the existing public sanitary sewer system. 13. The applicant shall provide an on-site water quality facility as established under the guidelines of Unified Sewerage Agency Resolution and Order No. 91-47. submitted design calculations shall include an operation and maintenance plan. 14. The applicant shall provide, as a minimum, a 25 foot buffer which meets the requirements of Section 6.08.3, of USA Resolution and Order No. 91-47. 15. The applicant shall obtain a "Joint Permit" from the City of Tigard. This permit shall meet the requirements of NPDES and Tualatin Basin Erosion Control Program. 16. The grading plan shall comply with Chapter 70 of the State of Oregon Structural Scecialty Code. 17. An Occupancy Permit will not be issued until S.W. Dartmouth Street is open to traffic between S.W. 68th Avenue and S.W. Pacific Highway. 18. Demolition permits must be obtained from the Building Division prior to the removal of any structures on the site. 19. All existing underground utilities shall be removed during site work operations. 20. A geotechnical report shall be submitted to the Building Division with plans for the site work. The report shall include specific reco:renendations and specifications for the rockery walls which are consistent with the "Standard Rockery Construction Guidelines", published by the Association of Rockery Contractors or other approved standard. 21. The lighting plan for the west side of the building shall be reviewed and approved by the Police Department. 22. Revised site and landscaping plans, which contain the following elements shall be submitted for Planning Director approval: a. Sidewalk connections to the store from SW Pacific Highway. A link shall be provided to the bus stop at the northwest corner of the site. b. A sidewalk and crosswalk heading east from the store entrance to SW Dartmouth Street. C. Sidewalk widths that will have a minimum amount of usable width of 8 feet, whers cars park up to the curb adjacent to the building. d. Raised crosswalks to delineate pedestrian crossings, or as otherwise PLANNING COMMISS_ON FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 10 NUNN approved by the Planning Director. ( e. Twenty-six bicycle parking spaces shall be provided and distributed throughout the site so that they are easy to see and use by customers and employees. At least half of the required spaces shall be located near the building entrance, preferably under the building canopy. Employee bicycle parking can be provided indoors if an area is designated for this use. The bicycle rack design shall also be submitted for approval. f. Eight loading spaces shall be provided, or the applicant must obtain a variance approval for five spaces. g. The applicant shall submit a revised landscape plan to incorporate additional plant material to adequately screen the west side of the proposed building. View corridors for signs on the building can be taken into consideration. h. The applicant shall replace the 20" maple and 30" London pine tree located in the northwest corner of the site with six 3 caliper trees in the same general vicinity. i. Street trees shall be provided along the SW Pacific Highway. Street trees and landscaping shall be provided along the SW Dartmouth Street frontage. The SW Dartmouth Street landscape improvements shall be consistent with the "Landscape Development Standards for Dartmouth Street Extension", dated October 1, 1992. j. Landscaped islands shall be provided with trees that have mature heights over 30 feet near the east, north, and west sides of the building. These features will be designed to soften the mass of the building, and screen rooftop equipment. k. Parking lot trees will be provided to create a canopy when they mature. Said trees shall be documented by an arborist to be of a species and size to reach 35 percent coverage of the parking stalls within 20 years. The view corridors for signs may be identified by the applicant so that the trees selected provide the maximum amount of screening while allowing visual access to the wall signs after the trees mature. 1. Trees and other vegetation shall be provided along the base of the retaining wall on the south side of the project for screening. M. Plantings near driveway entrances shall meet visual clearance standards. n. In order to help compensate for the visual impact of the grading and tree removal, the Director may place minimum size requirements on replacement trees in specific locations to provided the desired level of screening. o. The 12 trees listed in Attachment "E" of the applicant's submittal shall be identified and incorporated into the revised site and landscaping plans. 23. A tree removal permit is required and may be issued for trees over six inches or more in diameter measured four feet above the ground only after approval of the revised site and landscaping plan. 24. A temporary easement shall be provided for the property south of the proposed southern retaining wall that allows for the construction of a PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 11 pedestrian pathway linking SW Dartmouth Street and the properties to the east and south. This easement may be terminated once a pathway route has been determined, and a specific easement created to allow for its construction. 25. The applicant shall establish an escrow account with funds dedicated for the construction of a pedestrian pathway from SW Dartmouth Street to the southern property boundary. The amount of deposit shall be based on present cost estimates for a 10-foot wide paved pathway. If the pathway is not constructed within five years, the account shall be refunded to the applicant. I 26. The billboard near Highway 217 shall be removed. j IN ADDITION THE APPLICANT SHOULD BE AWARE OF THE FOLLOWING SECTIONS OF THE COMMUNITY DEVELOPMENT CODE; THIS IS NOT AN EXCLUSIVE LIST. i 1. SECTION 18.120.060 BONDING AND ASSURANCES A. On all projects where public improvements are required the Director shall: 1. Require a bond in an amount not greater than 100 percent of other adequate assurances as a condition of approval of the site development plan in order to ensure the completed project is in conformity with the approved plan; and 2. Approve and release such bonds. B. The bond shall be release when the Director finds the completed project conforms to the approved site development plan and all conditions of approval are satisfied. 2. SECTION 18.164 STREET AND UTILITY IMPROVEMENT STANDARDS A. 18.164.180 Notice to City Required 1. Work shall not begin until the City has been notified in advance. 2. If work is discontinued for any reason, it shall not be resumed until the City is notified. It is further ordered that the applicant be notified of the entry of this order. PASSED: This -i~ day of December, 1993, by the Planning Commission of the City of Tigard. rv"ent a Wcommission igard Pla PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 12 EXHIBIT A 1 i 1 400 800 1200 0 FEET ti'cRJJpcJ .r~'Ar ; I ! 5 r• BEvELAho PHIL LEWIS ELEK.7-NI ARY Mw G0.94Z'~a SCHOOL N i EXHIBIT B FINDINGS AND CONCLUSIONS The applicants have presented a report entitled City of Tigard Site Review/Plan Development Application that addresses the applicable Community Development code provisions. This report also includes a traffic study prepared by Xittelson and Associates, and a wetlands analysis prepared by W&H Pacific. This report is referred to as the "applicant's statement" below. The relevant Community Development Code provisions are found in Chapters 18.62, 18.80, 18.90, 18.96, 18.100, 18.102, 18.106, 18.108, 18.114, 18.120, 18.150, and 18.164. The proposal, as modified by the staff recommendations, complies with these criteria as described below. 1. Chapter 18.62 General Commercial District Section 18.62.030 is satisfied because the proposed combination of food and beverage/general retail sales is permitted in the C-G zone. Other requirements of the zone are addressed in the applicant's statement (p. III-1). 2. Chapter 18.80 Planned Development The majority of the approval criteria in this chapter refer to other portions of the Code which are addressed elsewhere in this report. The criteria that require an amendment of the proposal relate to tree preservation and screening (Section 18.80.120 A. 3.). The nature of the development will require a substantial amount of tree removal. Once additional trees are preserved or planted as recommended in the staff report, these criteria will be-satisfied. 3. Chapter 18.90 Environmental Performance Standards The application complies with this chapter as described in the applicant's statement (p. III-16). 4. Chapter 18.96 Additional Yard Setback Requirements and Exceptions This chapter is satisfied because the development provides the required setback from SW Pacific Highway and Dartmouth Street. 5. Chapter 18.100 Landscaping and Screening The proposed landscaping meets the general Code requirements. Additional landscaping details to assure Code compliance, street trees along SW Pacific Highway, and screening (as described in the conditions of approval) must be provided to satisfy this chapter. 6. Chapter 18.102 Visual Clearance Areas Compliance with the provisions of this chapter must be confirmed during the review and approval of the final landscaping plan. The conceptual plan indicates that trees and other plantings will be located in vision clearance areas. The size and species of these plantings must be selected and placed in a manner the provides adequate visibility at the driveway entrances. 7. Chapter 18.106 Off-Street Parking and Loading Section 18.106.030 requires one parking space for every 400 square feet of general retail floor area. This yields a parking PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 13 requirement of 389 spaces. The site plan shows a total of 849 spaces. Section 18.106.020 P. requires one bicycle parking space for every 15 required vehicle parking spaces. A total of 26 bicycle parking spaces are required, and the applicant proposes providing 22. The dimensional standards outlined in Section 18.106.050 are satisfied. Subsection 18.106.050 J. states that access drives from the street to off-street parking and loading areas "provide maximum safety for pedestrian and vehicular traffic..." The proposed plan creates a number of congested and potentially dangerous areas that mix vehicular and pedestrian traffic. The recommended amendments in the conditions of approval will satisfy this criterion. The five loading spaces do not meet the code standard of eight spaces for a facility of this size (Section 18.106.080). The plan must be amended to include eight spaces or a separate variance application must be approved. 8. Chapter 18.108 Access Egress and Circulation The proposed access driveways meet the requirements of this chapter. Also, the driveway locations are consistent with the access plan for SW Dartmouth Street. 9. Chanter 18.114 Signs The proposed wall signs conform with the applicable standards in this chapter as noted in the applicant's statement (p. III-10). 10. Chante= 18.120 Site Development Review As in the Planned Development chapter, this chapter calls for the protection of existing trees (Section 18.120.180 A. 2. a.). The existing site plan does not address this issue. It is acknowledged -ha-- the majority of the trees on the site must be removed to develop the property as it is designated in the Comprehensive Plan. However, it does appear that greater attention can be paid to tree preservation as recommended in this report. As noted earlier, more attention needs to be given to screening to =educe the significant impact of the building and parking area. The amendments proposed for the site and landscaping plans will provide the necessary additional level of screening required by the Code (Sect'-on 18.120.080 A. 4.). Pro,:--ding improved linkages to transit are required by Section 18._20.080 A. 12. and the amendments recommended in this report will cornnl w_th this section. 11. Chanter 18.150 Tree Removal in order to satisfy the criteria in Section 18.150.030, the applicant must show how reasonable efforts are being made to preserve trees on the site. In addition, to help compensate for the visual impact of the trees removed, the applicant will be required plant trees of an appropriate number and size as part of the deve_onment. 12. Chanter 18.164 Street and Utility Improvement Standards As conditioned by the Engineering Department, the standards of this chapter will be satisfied. PLANNING COMMISSION FINAL ORDER - SDR 93-0018/PDR 93-0010 - COSTCO 14 mrRown 14 4 s N N N AFFt QPG~Q / ,tl } • DUVALL STREET SVI 1 Sw. 'CL J4 `4 1 ~ l gM. • 1 PARK _ PL. ' 1 .SAY 217 NEPrIP:p S.N. BE4EtAwp 1 • 1 t_ ESL L~W1S ~ }R""j~FR ( :~I ~r FACSIMILE TRANSMITTAL NOTICE DATE: December 13, 1993 TO: Councilor Fessler CO./DEPT.: FAX: FROM: Cathy Wheatley DEPT: Administration PHONE 639-4171 SUBJECT: Costco Final Order Here is the material you requested earlier today... • Minutes of the 12/6/93 Planning Commission meeting regarding Costco • Attachment "E" as referred to in the Final Order for the Costco property. Cathy Q Page 1 of 14- Our facsimile telephone number is (503) 684-7297 This number is to be used for business transmission only and is not available for advertising purposes. Should you have any difficulties with this transmission, please call (503) 639-4171 h:\login\cathy\faxtrens ~~l U TIGARD PLANNING COMMISSION Regular Meeting Minutes - December 6, 1993 1. CALL TO ORDER: President Fyre called the meeting to order at 7:30 PM. The meeting was held in the Tigard Civic Center - Town Hall - 13125 SW Hall Boulevard. 2. ROLL CALL: Present: President Fyre, Commissioners De Frang, Holland, Moore, Saxton, Wilson, Schweitz. .Absent: Commissioners Boone, Saporta. Staff: Community Dev. Director Ed Murphy, Senior Planner Dick Bewersdorff, Senior Planner, Carol Landsman, Planning Commission Secretary Lorraine Campbell. 3. APPROVE MINUTES • Commissioner Holland moved and Commissioner Schweitz seconded to approve minutes of November 15, 1993. Motion carried by majority of Commissioners present. Commissioners De Frang, Fyre, Saxton and Wilson abstained. • President Fyre introduced two new Commissioners, Ms. Carolyn De Frang and Nick Wilson. 4. PLANNING COMMISSION COMMUNICATIONS • There were no Planning Commission communications. Senior Planner, Dick Bewersdorff, suggested that the order of the agenda be reversed to allow for the shorter item to completed first. 5.2 ADOPT DKS ROADWAY MASTER PLAN FOR DARTMOUTH STREET • Senior Planner, Carol Landsman, gave background information on Dartmouth Street. Carol said that a consultant, Randy McCort of DKS Associates, was hired to develop a master plan for Dartmouth Street. Carol said the plan is in the conceptual stage and staff would like the Planning Commission's input before they present it to the citizens and property owners for review. • Consultant Randy McCort, DKS Associates, 921 SW Washington Street, Suite 612, Portland, Oregon 97205, referred to the plans handed out at tonight's meeting and discussed the ( 20-year plan for Dartmouth Street. He said they have built off of the Tigard Triangle analysis that has been conducted over the last several months. • Commissioner Holland asked if there was a proposed loop isle between Costco's proposed main driveway and another driveway. • Randy McCort responded that the intent of the loop isle was to provide a facility that would act as a relief valve in the case that that access control is provided. • Commissioner Holland asked if there was going to be a connection to SW 69th? • Randy McCort said that SW 69th would have limited access with the full access being provided at SW 70th. • Senior Planner, Carol Landsman, said if the Commissioners have comments they can share them with her at the next meeting and she will discuss them with the consultant. • President Fyre said he was having difficulty commenting when he doesn't know what the Triangle Plan is going to be when it is approved. 5.1 SITE DEVELOPMENT REVIEW SDR 93-0018/PLANNED DEVELOPMENT REVIEW PDR 93-0010 COSTCO LOCATION: Southeast corner of the intersection of SW Pacific Highway and Highway 217. (WCTM 1S1 36CD, tax lots 2200, 2300, 2500, 2600, 2700, 2800, 2900, 3000, 3100, 3200, 3300, 3400, 3500, 3600, 3700, 3800, 3900, 4000, 4100, 2S1 1BA, tax lot 200 and 2S1 1BB, tax lot 1201). A request for Site Development Review/Planned Development approval to allow construction of a 155,415 square foot commercial wholesale retail building. rDPLICABLE APPROVAL CRITERIA: Community Development Code Chapters 18.32, 18.62, 18.80, 18.90, 18.100, 18.102, 18.106, 18.108, 18.114, 18.116, 18.120, 18.150, and 18.164. ZONE: C-G(PD) (General Commercial, Planned Development) The C-G zoning designation allows public agency and administrative services, public support facilities, professional and administrative services, financial, insurance, and real estate services, business support services, and eating and drinking establishments among other uses. • Senior Planner, Dick Bewersdorff, reviewed the staff report and the pertinent background information on the request for Site Development Review and Planned Development Review. He discussed the major issues and addressed conditions of approval. Page 2 - Planning Commission Minutes - December 6, 1993 APPLICANT'S PRESENTATION • Mr. Jack Frank, Director of Development, Price Costco Inc., 14040 221st Avenue, NE, Woodinville, Washington 98072, gave background information on Price Costco and introduced associates Hal Keever, Project Manager; Rick Martin, Project Engineer and Mike Smith, Landscape Architect. Also available for further comment were Mitchell Smith of Mulvaney Lee Architects; Gary Katsion, Traffic Engineer, Kittelson & Associates; Jeffrey H. Keeney, counsel, Tonkon Torp. • President Fyre said he would like Mr. Keever to address staff's concerns as that is what the Commissioners will be deliberating on tonight. • Mr. Hal Keever, Project Manager W & H Pacific, 8405 SW Nimbus Avenue, Beaverton, Oregon, referred to the staff report and said there were some inconsistencies that he was concerned about. Mr. Keever went over the issues of his approval and disapproval with the staff report. • Mr. Gary Katsion, Kittelson & Associates, 610 SW Alder, Ste. 700, Portland, Oregon 97205, spoke about the traffic issues. • Commissioner De Frang asked if Costco would be installing speed bumps. • Hal Keever said that it would be a problem to put in speed bumps as some of the parking area would be where large carts are pushed and it would be too hard to maneuver the large carts over the speed bumps. PUBLIC HEARING • Mr. Gordon S. Martin, 12265 SW 72nd Avenue, Tigard, Oregon 97223, handed out a letter from his father Gordon R. Martin. Mr. Martin said that his family is in favor of the Costco development but would like to see the intersection at Dartmouth and 99W improved before Costco is built. APPLICANT'S REBUTTAL • Mr. Jack Frank addressed the Dartmouth-99W intersection issue said the traffic analysis was very thorough and in accordance with city and state guidelines. Jack Frank said that Price Costco, as a condition of approval, is willing to participate in half the cost of a future traffic signal at the southerly driveway on Dartmouth. Page 3 - Planning Commission Minutes - December 6, 1993 / • Mr. Hal Keever further discussed the redesign of the northeast l_ corner of the parking lot. • Commissioner Wilson said he was concerned about the severity of the 60' fall in grading. • Hal Keever discussed how they had tried to preserve the vegetation and that the remaining 12+ acres to the south will be untouched and left in its natural state. • Commissioner Wilson asked how Costco arrived at its number of 849 parking spaces. • Hal Keever responded that they are asking for more than the minimum spaces normally required as Costco shoppers are usually in the store for a longer time period. • Commissioner Wilson asked how the Tigard Costco relates in size to the Aloha or Tualatin stores. • Hal Keever said this will be the largest Costco in Oregon. • Director of Community Development, Mr. Ed Murphy, discussed Condition No. 6, traffic signals and the widening of Dartmouth Street. Discussion followed. • President Fyre wanted to clarify for the applicant that they waive any future right to participate in an LID that would take place. PUBLIC HEARING CLOSED • Comanissioner Moore wanted to go over staff recommendations on item 22. Discussion ensued on staff's recommendations. • Commissioner Saxton said that if the parking is oriented as shown in the applicant's drawing, the cars will have to slow down to turn into the aisles. • Commissioner Moore said he agrees with the applicant and that the shrubs are not needed. • Commissioner Schweitz said his concern with the carts is that a reasonable place is provided to leave them in order to reduce people running back to the building with them. He said the shorter the aisles, the easier it will be for the traffic. He was not in favor of the shrubs. Page 4 - Planning Commission Minutes - December 6, 1993 • Commissioner Holland was concerned about cars stacking up in order to get into the parking lot. He said he favored the city's plan. • Commissioner Wilson said he also favors the applicant's plan regarding the parking lot. • Commissioner De Frang says she sees problems with congestion and would like to see speed bumps installed so that traffic could be slowed down. • Commissioner Saxton says he does not favor the shrubs installed and is concerned about Condition 25. Discussion followed. • President Fyre said he liked the layout of the applicant's parking lot. He said he is in agreement with what has been said already and wants to see the billboard removed. • Commissioner Moore moved to approve Site Development Review SDR 93-0018/Planned Development Review PDR 93-0010 Costco with the following changes: 22. b. Delete. ® d. Sidewalk widths that will have a minimum amount of usable width of 8 feet, with cars parked adjacent to building. e. Raised crosswalks to delineate pedestrian crossings or as otherwise approved by the Planning Director. f. Delete. i. Delete. j. Revise and approve by staff. k. Revise and approve by staff. M. Strike sentence, "Also, a landscaped area for shrubs, etc. shall be provided on the east and north building faces." n. Add: "Said trees shall be documented by an arborist to be of a species and size to reach 35 percent of the parking stalls coverage within 20 years." Page 5 - Planning Commission Minutes - December 6, 1993 J Billboard shall be removed. Motion seconded by Commissioner Saxton. Motion carried unanimously Commissioners present. 7. OTHER BUSINESS 8. ADJOURNMENT - Meeting adjourned at 9:05 PM. Lorraine Campbell Planning Commission Secretary ATTEST: President Fyre lc/PC12-6.min C Page 6 - Planning Commission Minutes - December 6, 1993 f PACIFh~" 89% A 8405 S.W. Nimbus Avenue P.O. Box 80040 Portland, OR 97280 Tree Survey and Analysis Statement Costco Tigard W&H Pacific performed a survey and inventory of the existing trees larger than 6" caliper located within the proposed Costco Tigard site boundries. This effort was in response to the City of Tigard's Development Code Chapter 18.80. For each tree with a minimum 6" caliper, a field notation of tree species, approximate size and general location was made. The survey revealed a great diversity of species type and size throughout the residential side of the site. Once completed, each tree was evaluated for "significant tree" status, depending upon the tree species type, size and age, and relative health (resistance to disease and infestation). Of all the existing trees inventoried, three appeared to qualify as significant. Each exhibited significant size and stature for their particular species, and appeared to be in relatively good health. Two trees exhibiting such qualities include a 42" and 36" Oregon Oak, both located in the roadway loop planting area at the end of the roadway. A third significant tree is a 24" Tulip Tree in the front yard of one of the east roadway residences. Given the locations of the significant trees, the location of the proposed building, and the extent of the proposed rough grading necessary to accomodate the building and parking configuration, presevating the three significant trees appears to be impossible. (Please refer to the Grading Plan). However, Costco recognizes that numerous other existing trees within the site have an aesthetic value and would add considerably to the built landscape appearance if relocated from their present locations. Some trees are suitable for transplanting on the site after grading has taken place. There may be opportunities to move them from present non-compatible locations to areas where they could be prominantly displayed and allowed to thrive and fluorish. Following is a listing of existing trees that have some potential for being relocated; 6" Comus florida Flowering Dogwood 6" Prunus spp. Dwarf Flowering Cherry 8" Quercus gatryana Oregon Oak 8" Picea pungens 'Glauca' Colorado Blue Spruce 8" Psuedotsuga menziesii Douglas Fir 8" Psuedotsuga menziesii Douglas Fir 10" Picea pungens 'Glauca' Colorado Blue Spruce 10" Psuedotsuga menziesii Douglas Fir 12" Picea pungens 'Glauca' Colorado Blue Spruce 12" Pinus nigra Austrian Pine (503) 626-0455 Fax (503) 526-0775 Planning • Engineering • Surveying • Landscape Architecture • Environmental Services Costco - Tigard Tree Survey ( Pg.2 12" Psuedotsuga menziesii Douglas Fir 20" Prunus cerasifera Flowering Plum Ae 23i 231 m s HAROLD G. KEEPER OIMGO T 1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF TIGARD AND THE TIGARD WATER DISTRICT FOR DELIVERY OF WATER SERVICE TO TERRITORY WITHIN THE DISTRICT BOUNDARIES This Agreement is made and entered into by the City of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and the Tigard Water District, a domestic water supply district existing under ORS Ch. 264, (hereinafter "District"). Tigard and District are jointly referred to herein as "the Parties." Unless identified as "original," District refers to the remnant district. RECITALS: 1. The cities of.Tigard, King City and Durham .(collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 1 (12/13/93) 7. The Parties shall continue to prepare independent tax coordination plans. 8. Tigard and the District acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers contained in Tigard-s Charter, ORS 264.210 and ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. 3. Term. This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of the District for the duration of this Agreement unless a reasonable alternative domestic water supply is available to the District and the Agreement is terminated. 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 2 (12/13/93) At Large - One Member selected by a majority vote of the other Members B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve'two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties. They shall serve at the pleasure of the Tigard City Council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities: (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 3 (12/13/93) (3) to investigate and study means of effecting economies in operation and management. (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of theL water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) retained by District as a result of the division of assets after withdrawal INTERGOVERNMENTAL AGREEMENT { TIGARD/WATER DISTRICT - 4 (12/13/93) EWE from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. The District's ownership interest in the assets shall remain though the assets are being utilized by Tigard, unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. Tigard may appropriate from the water fund all moneys necessary to meet this obligation. Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of the District in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore,. that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by District in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects District, including its officers and commissioners, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to District and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to District, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name District as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of District without first giving written notice thereof to District at least ten (10) days in advance of such cancellation or modification. All such casualty insurance INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 5 (12/13/93) shall contain a provision making any losses payable to Tigard and District as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of the District. To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless District from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying District for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in District shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. Any higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of the District, Tigard will collect on behalf of the District additional charges imposed by the District on District customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 6 (12/13/93) EN Tigard in accordance with subsection 5.D. (3) Those assets (moneys) retained by the District as a result of the division of assets after withdrawal from the original District by Tigard, which are being utilized by Tigard pursuant to Section 5.A. and which are dedicated by the District to system capital improvement shall be utilized by Tigard solely for system capital improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge. D. Capital Improvements. (1) (a) Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. (b) The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the Cities and the District. The capital projects in the District's Capital Improvement Plan dated , will be included in the long-range capital improvement program, INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 7 (12/13/93) if approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish whether a capital improvement qualifies as (i) a water main, service installation, structure, facility, improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. The District shall receive an annual rebate equal to 1% of the previous year's water sale revenue within the District for District expenses. In addition, Tigard will appropriate and deliver $ from its initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995. G. Ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section S.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "system assets," the Cities and the District each shall have a proportionate interest in such "system asset" capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. The Cities' and the District's proportionate interest in such "system asset" capital improvement's depreciated value shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 8 (12/13/93) MIA_ A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District (2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting (1) Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and methodology. (2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 9 (12/13/93) m d than the water fund. I. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received or kept as a result of the Cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by the District nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by the District without the written consent of the City. J. No part of this Agreement shall be interpreted as a waiver of either Party's statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired or retained as a result of the Cities' withdrawal from the original District. B. Tigard may incur, without the consent of the District, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of the District in writing prior to incurring such debt. The District shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under section 6.A. or has been incurred and approved by the District in manner described in section 6.B., District shall either: 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. The District may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 10 (12/13/93) B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. Tigard is under no obligation to provide such water services to areas annexed to the District subsequent to this Agreement. C. District agrees that Tigard is empowered to use any right of condemnation possessed by the District that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. D. To the extent that such agreements or contracts are transferrable, the District agrees to take the necessary action to transfer its water supply agreements or contracts with the City of Portland and the City of Lake Oswego to Tigard in order to facilitate the provision of water services consistent with the terms of this Agreement. 8. Rules and Regulations. A. The Rules, Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to the District shall be governed thereby. 9. Extension of Service. A. Extension or modification of District's water distribution system shall be done only with prior written approval of District. Furthermore, Tigard will not make any extensions or service connections within King City's or Durham's Urban Growth Boundary without permission from the King City or Durham City Council. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 11 (12/13/93) B. For the unincorporated area within the District, it is the governing body of the District which, subject to the rules and regulations specified in Section 8, has the authority to allow connections to the water supply system. C. Residents located within the District shall not be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for the City. 10. Employee Benefits/Personnel. All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the City"s authority to alter benefits or salary except as such authority is otherwise limited by this Agreement or by the provisions of ORS 236.605 to 236.650. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 12 (12/13/93) NAM 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of the District and Tigard. 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: TIGARD WATER DISTRICT, OREGON Attest: By: tigard\ tigardWDAga(12/13/93) INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 13 (12/13/93) INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF TIGARD AND THE TIGARD WATER DISTRICT FOR DELIVERY OF WATER SERVICE TO TERRITORY WITHIN THE DISTRICT BOUNDARIES This Agreement is made and entered into by the City of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and the Tigard Water District, a domestic water supply district existing under ORS Ch. 264, (hereinafter "District"). Tigard and District are jointly referred to herein as "the Parties." Unless identified as "original," District refers to the remnant district. RECITALS' 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major. portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. f INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -1 (12/13/93) 7. The Parties shall continue to prepare independent tax coordination plans. 8. Tigard and the District acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers contained in Tigardfs Charter, ORS 264.210 and ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. 3. Term. ' This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of the District for the duration of this Agreement unless a reasonable alternative domestic water supply is available to the District and the Agreement is terminated. 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -2 (12/13/93) At Large - One Member selected by a majority vote of the Other Members B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties. They shall serve at the pleasure of the Tigard City Council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities: (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -3 (12/13/93) (3) to investigate and study means of effecting economies in operation and management. (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) retained by District as a result of the division of assets after withdrawal INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -4 (12/13/93) from the original District by the Cities shall be utilized by / Tigard in order to provide water services to properties, residences and businesses in the original District. The -Dis [District's] ownership interest in the assets shall remain though the assets are being utilized by Tigard, unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order.<To the extent that there ±9 a shared ese ef an asset, the ebligatlens ef -snared--I- equable-Manner. Distriet shall aditlens to the s=sets it lees -net ese.~,- [Tigard may appropriate from the water fund all moneys necessary to meet this obligation.] Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of the District in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by District in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects District, including its officers and commissioners, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to District and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to District, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name District as additional insured and shall contain a provision to the effect that such INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -5 (12/13/93) EWA_ insurance shall not be canceled or modified materially and adversely to the interest of District without first giving written notice thereof to District at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and District as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of the District. To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless District from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying District for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in District shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. Any higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of the District, Tigard will collect on behalf of the District additional charges imposed by the District on District customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -6 (12/13/93) of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. (3) Those assets (moneys) retained by the District as a result of the division of assets after withdrawal from the original District by Tigard, which are being utilized by Tigard pursuant to Section 5.A. and which are dedicated by the District to system capital improvement shall be utilized by Tigard solely for system capital improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. [The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge.] D. Capital Improvements. (1) [(a)] Capital projects shall be implemented in accord ~t with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. [(b)] The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. [A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the District a proposed Capital Improvement Plan no later than June 30, INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -7 (12/13/93) 1994 for consideration by the cities and the District.] The capital projects in the District's Capital Improvement Plan dated , will be included in the long--range capital improvement program, if approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish whether a capital improvement qualifies as (i) a water main, service installation, structure, facility, ° improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. The District shall receive an annual rebate equal to it of the previous year's water sale revenue within the District for District expenses. [In addition, Tigard will appropriate and deliver $ from its initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995.] G. Ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section S.D. to be "system assets," <4q-ga3d>- [the Cities] and the District each shall have a proportionate interest in such <eapltal: Iyapi-evement. Tigard may terminate stieh rights by payment -ef-a stim-equal to-the-H i t • - interest the Ekent. The ["system asset" capital improvement's depreciated value. The depreciated value] shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -8 (12/13/93) Sheuld of ~rre-crcre9-roc--the--919criet terminate % is piatel-- seL=yIeC'--tit If ' j -I-aeld-dee-rde a-exerels interest a Tlejard=s?- [The Cities'] and the District's proportionate interest in [such 11system assety$ capital improvement's depreciated value] shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = [(]A + B + C<- -3-> /3] A = Jurisdiction's Percentage of [Current] Consumption in original District B = Jurisdiction's Percentage of [Current] Real Market Value in original District C = Jurisdiction's Percentage of [Current] Meters in original District [(2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting] H3->[(1)] Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect INTERGOVERNMENTAL AGREEMENT f TIGARD/WATER DISTRICT -9 (12/13/93) charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and methodology. [(2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund.] 1. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received or kept as a result of the Cities, withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither. the benefits received by the District nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by the District without the written consent of the City. J. No part of this Agreement shall be interpreted as a waiver of. either Party's statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt; if any, acquired or retained as a result of the Cities' withdrawal from the original District. B. Tigard may incur, without the consent of the District, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of the District in writing prior to incurring such debt. The District shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by the District in manner described in Section 6.B., District shall either: INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -10 (12/13/93) NEW 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. The District may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system . upgrades, and billing functions. Tigard is under no obligation to provide such water services to areas annexed to the District subsequent to this Agreement. C. District agrees that Tigard is empowered to use any right of condemnation possessed by the District that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. D. To the extent that such agreements or contracts are transferrable, the District agrees to take the necessary action to transfer its water supply agreements or contracts with the City of Portland and the City of Lake Oswego to Tigard in order to facilitate the provision of water services consistent with the terms of this Agreement. 8. Rules and Regulations. A. The Rules Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -11 (12/13/93) regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to the District shall be governed thereby. 9. Extension of Service. A. Extension or modification of District's water distribution system shall be done only with prior written approval of District. Furthermore, Tigard will not make any extensions or service connections within King City's or Durham's Urban Growth Boundary without permission from the King City or Durham City Council. B. For the unincorporated area within the District, it is the governing body of the District which, subject to the rules and regulations specified in Section 8, has the authority to allow connections to the water supply system. C. Residents located within the District shall not be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for the City. 10. Employee Benefits/Personnel. All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the City's authority to alter benefits or salary except as such authority is otherwise limited by this Agreement or by the provisions of ORS 236.605 to 236.650. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -12 (12/13/93) pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously 'executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of the District and Tigard. 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON ` Attest: By: TIGARD WATER DISTRICT, OREGON Attest: By: figara\ -gapdIAW [ -ip(12/13/93)1 INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -13 (12/13/93) COMPARISON OF FOOTERS -FOOTER T- IN ERGOVERNMFNTAL AGREEMENT' TTGARD/WATER DISTRICT (tea" 112/13/93D INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT -14 (12/13/93) INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITIES OF TIGARD AND KING CITY FOR DELIVERY OF WATER SERVICE TO KING CITY This Agreement is made and entered into by the cities of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and King City, an Oregon municipal corporation, (hereinafter "King City"). Tigard and King City are jointly referred to herein as "the Parties." Unless identified as "original," "District" refers to the remnant Tigard Water District. RECITALS: 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. 7. The Parties shall continue to prepare independent tax INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 1 (12/14/93) coordination plans. 8. The Parties acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers of their respective municipal charters and pursuant to ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. 3. Term. This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of King City for the duration of this Agreement unless a reasonable alternative domestic water supply is available to King City and the Agreement is terminated . 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 2 (12/14/93) I B. Intergovernmental Water Board Terms. ANN (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties. They shall serve at the pleasure of the Tigard City Council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities: (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. (3) to investigate and study means of effecting economies in operation and management. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 3 (12/14/93) (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) received by King City as a result of the division of assets after withdrawal from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in King City. King City's ownership interest in the assets shall remain though the assets are being utilized by Tigard, INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 4 (12/14/93) WM- unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. Tigard may appropriate from the water fund all moneys necessary to meet this obligation. Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of King city in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject'to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by King City in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects King City, including its officers and employees, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to King city and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to King City, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name King City as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of King City without first giving written notice thereof to King City at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and King city as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of King City. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 5 (12/14/93) To the extent permitted by law, Tigard shall indemnify, C protect, hold harmless, save and keep harmless King City from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any - asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying King City for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in King City shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. t%ny higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, - rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of King City, Tigard will collect on behalf of King city additional charges imposed by King City on King City customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District.to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. (3) Those assets (moneys) transferred to King City as a result of the division of assets after withdrawal from the original District by King City, which are being utilized by Tigard pursuant to Section 5.A. and which are INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 6 (12/14/93) dedicated by King City to system capital improvement r shall be utilized by Tigard solely for system capital l improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge. D. Capital Improvements. (1) (a) Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. (b) The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the Cities and the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the cities and the District. The capital projects in the District's Capital Improvement Plan dated , will be included in the long-range capital improvement program, if approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 7 (12/14/93) King City, Durham or the District and shall distinguish ® whether a capital improvement qualifies as (i) a water ~i main, service installation, structure, facility, improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). E. Long-term water supply contracts shall be"Entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. The City of King City shall receive an annual rebate equal to 1% of the previous year's water sale revenue within the City of King City for potable water supply related expenses. G. ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "svstem assets," the Cities and the District each shall have a proportionate interest in such "system asset" capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. The Cities' and the District's proportionate interest in such "system asset" capital improvement's depreciated value shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 8 (12/14/93) Now IWA~ (2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting (1) Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and methodology. (2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund. I. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received as a result of the Cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by King City nor the obligations incurred under the terms of this Agreement are INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 9 (12/14/93) assignable or in any manner transferrable by King City without the written consent of Tigard. J. No part of this Agreement shall be interpreted as a waiver of either Party,'s statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired as a result of withdrawal from the original District. B. Tigard may incur, without the consent of King City, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of King city in writing prior to incurring such debt. King City shall be liable for its proportionate share of any debt.for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by King city in manner described in Section 6.B., King City shall either: 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. King City may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. C. King City agrees that Tigard is empowered to use any INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 10 (12/14/93) right of condemnation possessed by King City that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. 8. Rules and Regulations. A. The Rules Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after the Intergovernmental. Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to King City shall be governed thereby. 9. Extension of Service. A. Extension or modification of King City's water distribution system shall be done only with prior written approval of King City. Furthermore, Tigard will not make any extensions or service connections within King City's Urban Growth Boundary without permission from the King City City Council. B. No development in an unincorporated area of the service area will be required to annex to a city as a consequence of this Agreement. C. Residents of King City shall not be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for Tigard. 10. Employee Benefits/Personnel. All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the City's authority to alter benefits or salary except as such authority is otherwise limited by this INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 11 (12/14/93) 'K. ME ■I Agreement or by the provisions of ORS 236.605 to 236.650. ( 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon.. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party i- shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of King City and Tigard. 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 12 (12/14/93) Now \ CITY OF KING CITY, OREGON Attest: By: apa\king ey,►p(12/14/93) 3 f t 1 { t 1 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 13 (12/14/93) U n Q INTERGOVERN74ENTAL AGREEMENT BETWEEN THE CITIES OF TIGARD AND KING CITY FOR DELIVERY OF WATER SERVICE TO KING CITY This Agreement is made and entered into by the cities of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and King City, an Oregon municipal corporation, (hereinafter "King City"). Tigard and King City are jointly referred to herein as "the Parties." Unless identified as "original," "District" refers to the remnant Tigard Water District. RECITALS' 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and-other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. 7. The Parties shall continue to prepare independent tax INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 1 (12/14/93) coordination plans. 8. The Parties acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers of their respective municipal charters and pursuant to ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. 3. Term. This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of King City for the duration of this Agreement unless a reasonable alternative domestic water supply is available to King City and the Agreement is terminated . 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 2 (12/14/93) B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties. They shall serve at the pleasure of the Tigard City Council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities: (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. (3) to investigate and study means of effecting economies in operation and management. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 3 (12/14/93) (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) received by King City as a result of the division of assets after withdrawal from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in King City. King City's ownership interest in the assets shall remain though the assets are being utilized by Tigard, INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 4 (12/14/93) unless and until transferred to Tigard by agreement or operation of ( law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. <rRv-the extent that heye-is--a shaved use-ef an asset the ebligatlens of zhis- gveement a-e eea3-acrd eastts--ine ed-te meet these ebligat-tens will be shaved in an equileable-maser. King ~i-..- te-the-assets it Bees-net u,se [Tigard may appropriate from the water fund all moneys necessary to meet this obligation.] Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of King City in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by King City in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects King City, including its officers and employees, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to King City and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to King City, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name King City as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely- to the interest of King City without first giving written notice thereof to King City at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 5 (12/14/93) King City as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of King City. To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless King City from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying King City for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in King City shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. Any higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of King City, Tigard will collect on behalf of King City additional charges imposed by King City on King City customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 6 (12/14/93) (3) Those assets (moneys) transferred to King City as a result of the division of assets after withdrawal from the original District by King City, which are being utilized by Tigard pursuant to Section 5.A. and which are dedicated by King City to system capital improvement shall be utilized by Tigard solely for system capital improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. [The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge.] D. Capital Improvements. (1) [(a)] Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. [(b)] The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. [A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the Cities and the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the Cities and the District.] The capital projects in the Districtts Capital Improvement Plan dated will be included in the long-range capital improvement program, if approved by the governing bodies of one less than the number of jurisdictions holding an ownership INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 7 (12/14/93) now ( interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish whether a capital improvement qualifies as (i) a water main, service installation, structure, facility, improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. The City of King City shall receive an annual rebate equal to 1% of the previous year's water sale revenue within the City of King city for potable water supply related expenses. G. Ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "system assets," eTiqjard and King elty), [the Cities and the District] each shall have a proportionate interest in such terminate ..h.. rights by payment of sum P_qe l to King eityis-interest in the depree-rated value of the _ _i - , depreelatlen> ["system asset" capital improvement's depreciated value. The depreciated value] shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. e-i-ties er the Di-st-r-iet-terminate --its--- Ovate= - agreement with Tigard er If Tigard shetild deelde te [The Cities' and the District's] proportionate interest in <a-eapital- mprex~ t> [such "system asset" capital improvement's depreciated value] shall be determined based upon the following formula: INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 8 (12/14/93) Jurisdiction's Proportionate Interest = [(]A + B + C* A = Jurisdiction's Percentage of [Current] Consumption in original District B = Jurisdiction's Percentage of [Current] Real Market Value in original District C = Jurisdiction's Percentage of [Current] Meters in original District [(2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting] <->[(1)] Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 9 (12/14/93) ( methodology. [(2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund.] I. The Parties-to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received as a result of the cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by King City nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by King City without the written consent of Tigard. J. No part of this Agreement shall be interpreted as a waiver of either Party's statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired as a result of withdrawal from the original District. B. Tigard may incur, without the consent of King City, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of King city in writing prior to incurring such debt. King City shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by King City in manner described in Section 6.B., King City shall either: 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 10 (12/14/93) A. Tigard will provide water to properties and customers in f all jurisdictions equally. If circumstances require water l restrictions, each jurisdiction shall share equally. King City may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. C. King City agrees that Tigard is empowered to use any right of condemnation possessed by King City that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. 8. Rules and Regulations. A. The Rules Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to King City shall be governed thereby. 9. Extension of Service. A. Extension or modification of King City's water distribution system shall be done only with prior written approval of King City. Furthermore, Tigard will not make any extensions or service connections within King City's Urban Growth Boundary without permission from the King City City Council. B. No development in an unincorporated area of the service area will be required to annex to a city as a consequence of this Agreement. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 11 (12/14/93) C. Residents of King City shall not be responsible for any t expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for Tigard. 10. Employee Benefits/Personnel._ All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the City's authority to alter benefits or salary except as such authority is otherwise limited by this Agreement or by the provisions of ORS 236.605 to 236.650. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of King City and Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 12 (12/14/93) 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: CITY OF KING CITY, OREGON Attest: By: tiprd\ nAnVd19.p(12n4/93)] INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 13 (12/14/93) ,i COWPII'GN GF Fflo-MRS URG1~G cL~' 1 i 3•~ 3 1 ~ 9 3 ~ YL A g~EEM (12 / 1e} 1 TIGEo/.K~ IpG CIT 5, l c. INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITIES OF TIGARD AND DURHAM FOR DELIVERY OF WATER SERVICE TO DURHAM This Agreement is made and entered into by the cities of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and Durham, an Oregon municipal corporation, (hereinafter "Durham"). Tigard and Durham are jointly referred to herein as "the Parties.,, Unless identified as "original," "District" refers to the remnant Tigard Water District. RECITALS: 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major Aff portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain-all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. 7. The Parties shall continue to prepare independent tax INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 1 (12/14/93) i coordination plans. 8. The Parties acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers of their respective municipal charters and pursuant to ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. 1 The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington Coun*:y area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. i 3. Term. This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of Durham for the duration of this Agreement unless a reasonable alternative domestic water supply is available to Durham and the Agreement is terminated . 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of f ive members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 2 (12/14/93) B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties.. They shall serve at the pleasure of the Tigard City council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities : (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. (3) to investigate and study means of effecting economies in operation and management. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 3 (12/14/93) (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) received by Durham as a result of the division of assets after withdrawal from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in Durham. Durham's ownership interest in the assets shall remain though the assets are being utilized by Tigard, INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 4 (12/14/93) MMIND unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. Tigard may appropriate from the water fund all moneys necessary to meet this obligation. Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of Durham in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard-extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by Durham in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects Durham, including its officers and employees, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to Durham and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to Durham, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name Durham as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of Durham without first giving written notice thereof to Durham at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and Durham as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of Durham. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 5 (12/14/93) To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless Durham from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying Durham for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in Durham shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. Any higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of Durham, Tigard will collect on behalf of Durham additional charges imposed by Durham on Durham customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. (3) Those assets (moneys) transferred to Durham as a result of the division of assets after withdrawal from the original District by Durham, which are being utilized by Tigard pursuant to Section 5.A. and which are dedicated by Durham to system capital improvement shall be utilized INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 6 (12/14/93) by Tigard solely for system capital improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge. D. Capital Improvements. (1) (a) Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. (b) The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property ' in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the Cities and the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the Cities and the District. The capital projects in the District**s Capital Improvement Plan dated , will be included in the long-range capital improvement program, if approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 7 (12/14/93) a 01 whether a capital improvement qualifies as (i) a water p main, service installation, structure, facility, improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). i E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. Water users within the City of Durham shall receive a discount of one percent (1%) on their bills for water service in the place of a 1% rebate offered to other jurisdictions receiving water service from the City of TIgard. G. Ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "system assets," the Cities and the District each shall have a proportionate interest in such "system asset" capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. The Cities' and the District's proportionate interest in such "system asset" capital improvement's-depreciated value shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 A = Jurisdiction's Percentage of Current consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 8 (12/14/93) (2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting (1) Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and methodology. (2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund. I. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received as a result of the Cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by Durham nor the obligations incurred under the terms of this Agreement are assignable or in any INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 9 (12/14/93) manner transferrable by Durham without the written consent of Tigard. J. No part of this Agreement shall be interpreted as a waiver of either Party's statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired as a result of withdrawal from the original District. B. Tigard may incur, without the consent of Durham, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of Durham in writing prior to incurring such debt. Durham shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by Durham in manner. described in Section 6.B., Durham shall either: ? 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. Durham may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. C. Durham agrees that Tigard is empowered to use any right INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 10 (12/14/93) of condemnation possessed by Durham that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. 8. Rules and Regulations. A. The Rules Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after ' the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to Durham shall be governed thereby. 9. Extension of Service. U A. Extension or modification of Durham's water distribution system shall be done only with prior written approval of Durham. Furthermore, Tigard will not make any extensions or service connections within Durham's Urban Growth Boundary without permission from the Durham City Council. B. No existing development in an unincorporated area of the service area will be required to annex to a city as a consequence of this Agreement. C. Residents of Durham shall not be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for Tigard. 10. Employee Benefits/Personnel. All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the City's authority to alter benefits or salary except as such authority is otherwise limited by this INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 11 (12/14/93) Agreement or by the provisions of ORS 236.605 to 236.650. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of Durham and Tigard. 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 12 (12/14/93) CITY OF DURHAM, OREGON Attest: By:_ tigard\durham.iga(12/14/93) INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 13 (12/14/93) 1'zQO~(\e INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITIES OF TIGARD A14D DURHAM FOR DELIVERY OF WATER SERVICE TO DURHAM This Agreement is made and entered into by the cities of Tigard, an Oregon municipal corporation, (hereinafter "Tigard") and Durham, an Oregon municipal corporation, (hereinafter "Durham"). Tigard and Durham are jointly referred to herein as "the Parties." Unless identified as "original," "District" refers to the remnant Tigard Water District. RECITALS: 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993. 2. Pursuant to ORS 222.540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993, (original District) that are not necessary for the operation of the remainder of the water supply system of the District. 3. The area withdrawn by Tigard was a major portion of the original District. Because of this, Tigard is entitled to a major portion of the original District's infrastructure pursuant to ORS 222.540. King City and Durham are entitled to smaller portions of the original District's infrastructure. Furthermore pursuant to ORS 222.550, should the District dissolve, Tigard will be in a position to obtain all of the District's remaining assets which have not been distributed under ORS 222.540. 4. With the assets and infrastructure obtained by its withdrawal from the original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest 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. 7. The Parties shall continue to prepare independent tax INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 1 (12/14/93) coordination plans. 8. The Parties acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers of their respective municipal charters and pursuant to ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement 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. 2. Definitions. 3. Term. Jr This Agreement will be in full force and effect until December 31, 2018, unless sooner terminated by one or both of the Parties. Either party may terminate this Agreement by providing written notice to the other party a minimum of five years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of Durham for the duration of this Agreement unless a reasonable alternative domestic water supply is available to Durham and the Agreement is terminated . 4. Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB). The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 2 (12/14/93) B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995). There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water Board to assist the Board in its duties. They shall serve at the pleasure of the Tigard City Council and shall have no voting privileges. D. A quorum of the Board shall be three (3) members. All actions of the Board shall require at least three (3) votes; including abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities : (1) to make a continuing study of the rate structure of the water system. (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. (3) to investigate and study means of effecting economies in operation and management. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 3 (12/14/93) _ I (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water Board may grant variances from the water system rules and regulations enacted by the City of Tigard when it finds that: a) strict application of the rules and regulations create undue economic hardship for the applicant with no significant benefit to the water system; b) the variance requested has no material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. 5. Asset Ownership/Water Rates/Revenues. A. Assets (real, personal and intangible property) received by Durham as a result of the division of assets after withdrawal from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in Durham. Durham's ownership interest in the assets shall remain though the assets are being utilized by Tigard, INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 4 (12/14/93) 4. HER- unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. <42v- extent that there is a shared use ef an asset, the eb3A ef- this agreement -are-veelpreeal eend-eests--ine•rved to meet =use ebligatiens will pe- hared in an equitable mannesha-}l h71Je-n lap pens b i' - J- maintain, additlens -te -the -assezs- = ele; net tise.30 [Tigard may appropriate from the water fund all moneys necessary to meet this obligation.] Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of Durham in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the assets, these costs will be shared in an equitable manner. Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by Durham in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects Durham, including its officers and employees, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to Durham and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to Durham, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name Durham as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of Durham without first giving written notice thereof to Durham at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and Durham as their INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 5 (12/14/93) respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of Durham. To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless Durham from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying Durham for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in Durham shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences and businesses when the cost of providing such service is greater due to unusual circumstances, including, but not limited to additional cost to pump water up hill to reach customers. Any higher fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of Durham, Tigard will collect on behalf of Durham additional charges imposed by Durham on Durham customers. C. Assets/Revenues. (1) Assets and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Those assets (moneys) transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 6 (12/14/93) (3) Those assets (moneys) transferred to Durham as a result of the division of assets after withdrawal from the original District by Durham, which are being utilized by Tigard pursuant to Section 5.A. and which are dedicated by Durham to system capital improvement shall be utilized by Tigard solely for system capital improvement in accordance with subsection 5.D. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. [The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge.] D. Capital Improvements. (1) [(a)] Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. [(b)] The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. [A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in -the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the Cities and the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the Cities and the District.] The capital projects in the District's Capital Improvement Plan dated , will be included in the long-range capital improvement program, if approved by the governing bodies of one less than the number of jurisdictions holding an ownership INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 7 (12/14/93) interest in the water system. (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish whether a capital improvement qualifies as (i) a water main, service installation, structure, facility, improvement or other property necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "system assets"), or (ii) not necessary for the operation of the City of Tigard's water supply system (hereinafter referred to as "other assets"). E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. F. Water users within the City of Durham shall receive a discount of one percent (1%) on their bills for water service in the place of a 1% rebate offered to other jurisdictions receiving water service from the City of Tigard. G. Ownership Rights. (1) Capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "other assets" shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined under Section 5.D. to be "system assets," [the Cities and the District] each shall have a proportionate interest in such rights by-payment of a stim equal Blurhamls interest in C-the the a ri ilui east ef the r r ["system asset" capital improvement's depreciated value. The depreciated value] shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. . } its~,.ate,-seo ee-agreement -w eptlen to buy eut the sera ~-de a i-dee e3 eee interest of any -part [The Cities' and the District's] proportionate interest in [such "system asset" capital improvement's depreciated value] shall be determined based upon the following formula: INTERGOVERNMENTAL AGREEMENT i TIGARD/DURHAM - 8 (12/14/93) I III M1 Jurisdiction's Proportionate Interest = [(]A + B + C4 z A = Jurisdiction's Percentage of [Current] Consumption in original District B = Jurisdiction's Percentage of [Current] Real Market Value in original District C = Jurisdiction's Percentage of [Current] Meters in original District [(2) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of such system assets equal to its Jurisdiction's Proportionate Interest as determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum.equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (3) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. H. Accounting] >[(1)] Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 9 (12/14/93) methodology. i. [ (2 ) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund.] I. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received as a result of the Cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by Durham nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by Durham without the written consent of Tigard. J. No part of this Agreement shall be interpreted as a waiver of either Party's statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired as a result of withdrawal from the original District. B. Tigard may incur, without the consent of Durham, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of Durham in writing prior to incurring such debt. Durham shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by Durham in manner described in Section 6.B., Durham shall either: 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 10 (12/14/93) A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. Durham may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. C. Durham agrees that Tigard is empowered to use any right of condemnation possessed by Durham that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. 8. Rules and Regulations. A. The Rules Rates and Regulations for Water Service Handbook, (November, 1992), adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A." Rules and regulations will be modified, altered or repealed only after the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to Durham shall be governed thereby. 9. Extension of Service. A. Extension or modification of Durham's water distribution system shall be done only with prior written approval of Durham. Furthermore, Tigard will not make any extensions or service connections within Durham's Urban Growth Boundary without permission from the Durham City Council. B. No existing development in an unincorporated area of the service area will be required to annex to a city as a consequence of this Agreement. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 11 (12/14/93) C. Residents of Durham shall not be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water purveyor for Tigard. 10. Employee Benefits/Personnel. All employees of the Southeast Washington County Joint Water Agency shall become employees of the City. The City shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the Cityls authority to alter benefits or salary except as such authority is otherwise limited by this Agreement or by the provisions of ORS 236.605 to 236.650. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12. Attorneys Fees. In the event any suit, action or other proceeding is brought with regard to this Agreement, or to enforce any of the provisions hereof, the prevailing party in any such suit, action or other proceeding, or any appeal therefrom, shall be entitled to reasonable attorneys fees. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14. Ratification of this Agreement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of Durham and Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 12 (12/14/93) 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: CITY OF DURHAM, OREGON Attest: By: figard\-Awham [a(1L2/14/93)] INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 13 (12/14/93) COMPARISON OF FOOTERS -FOOTER 1- INTERGOVERNMENTAL AGREEMENT TIGARD/DVRHAM - # (4i3}:7/4a, 112/14/93D INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 14 (12/14/93) 5.3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF TIGARD, OREGON, AUTHORIZING THE IMPOSITION OF WATER SYSTEM RULES AND REGULATIONS, AND DECLARING AN EMERGENCY. WHEREAS, the cities of Tigard, King City and Durham withdrew from the Tigard District effective July 1, 1993; and WHEREAS, Tigard, King City, Durham and the Tigard Water District agree that it is in their best interest if they were to be an integrated part of a water supply network receiving water service from Tigard's city water department; and WHEREAS, in agreeing to receive water from Tigard, Durham, King City and Tigard Water District have conditioned that action on Tigard initially following the Tigard Water District Rules and Regulations dated November 1992; and WHEREAS, the City Council has decided to adopt, by ordinance, rules and regulations consistent with those adopted by the Tigard Water District; now, therefore: THE CITY OF TIGARD ORDAINS AS FOLLOWS: Section 1. Chapter 12.10, Water System Rules and Regulations, is added to the Tigard Municipal Code and attached hereto as, Exhibit "A". Section 2. The City Council finds that the adoption of water system rules and regulations is imperative to the safe operation of the City's water supply system; therefore, an emergency is declared and this ordinance shall take effect upon its passage. Section 3. The City Council determines that any fees, rates or charges imposed by this ordinance is not a tax subject to the property tax limitations of Article XI, Section 11 (b) of the Oregon Constitution. Ey vote of all Council members present after i } t being read by number and title only, this day of 1993. Catherine Wheatley, City Recorder APPROVED: This day of , 1993. Approved as to form: City Attorney Date ach\tiprd\j mc\jwa\water\wtertigcd.ord i EXHIBIT "All Chapter 12.10 WATER SYSTEM RULES AND REGULATIONS 12.10.010 Application for Service. No service will be supplied or water furnished to any premises except upon written application on printed forms of the City. 12.10.020 Use of Water. Water will be furnished for ordinary domestic, business and community purposes, and fire protection, only. No water will be furnished for the direct operation of steam boilers, machinery or golf courses, except on an interruptible basis, and the city will assume no responsibility therein. 12.10.030 Service Size. A standard service connection, with 5/8" x 3/4" meter, will be installed from the main to the street curb or property line. The amount of the meter installation charge shall accompany all applications. Larger meters may be required for some services. The size of meter shall be determined by the City management. The City shall prescribe the number of buildings to be served from one meter and such determination shall be final. No customer shall furnish water to any family, business, institution, or premises other than those occupied by that customer; provided, however, that the City Council may permit a customer to supply others through customer's service connection, in which event such customer will be charged an additional monthly minimum for each additional customer so supplied. Such permit may be revoked and separate service connections required at any time. 12.10.040 Separate Connection. A separate service connection will be required for each dwelling, apartment or motel, place of business, and institution. All outlying buildings and premises used as a part of such dwelling place or business or institution may be served from such connection, as well as all buildings on such premises operated under the one management. City shall prescribe the number of buildings to be served from one meter and such determination shall be final. No customer shall furnish water to any family, business, institution or premises other than those occupied by that customer; provided, however that the City Council may permit a customer to supply others through customers' service connection in which event such customer will be charged an additional monthly minimum for EMENk- each additional customer supplied. Such permit may be revoked and separate service connections required at any time. 12.10.050 Furnishing Water. The City shall not be obligated to furnish and install, at its expense, system facilities for all property within the City. The City shall, so far as reasonable and practicable and within its financial means, however, provide adequate source of supply, necessary primary feeder mains, storage facilities and other improvements necessary to make water service generally available to all areas within the City. Extensions to furnish water to areas not now served by the City will be made at the expense of those persons requesting service. Such extensions will be made by the City or by those expressly authorized by the City. All applications for line extensions to provide new service are subject to review by the City Council. Consideration will be given to the City's ability to serve and to eligibility for annexation to the City of the property to be served. The City may contract with other governmental entities for the provision of water. The terms of service will be defined by agreement and consistent with the terms of this Chapter. 12.10.060 Private Service Pipes. All pipes from the meter to the premises must be installed in { accordance with good engineering practice, and maintained in good order by the customer. Pipes must be laid 24 inches deep provided with a stop and waste valve for drainage, and all standpipes or fittings of any kind must be so located, anchored and installed as not to interfere with or endanger the meter. All pipes must be well protected from freezing. 12.10.070 Credit for Water Leaks. When a water leak occurs on the customer's side of the water meter resulting in an unusually high water bill, customers can apply for a credit to their water bill equal to 1/2 the cost of the leak (above the normal bill), up to a maximum of $150. Customers must apply for credit in writing, to the City, and forward proof of the leak being fixed in a timely manner. 12.10.080 Jurisdiction. All service connections, meters, mains and parts of the system throuah which water is served, except the pipes beyond the meter, are the property of the City, and under its exclusive control. No person other than the Public Works Director or authorized person l shall install any service, make any extension, turn the water on or off, or otherwise tamper or interfere with the water or the system. 12.10.090 Waste - Plumbing - Inspection. Water will not be furnished to premises where it is allowed to run or waste to prevent freezing, or through defective plumbing, or otherwise. Plumbing should be of high test and first class, and in conformance with the appropriate codes of the jurisdiction issuing the building permit, and where pressures may become high, on 5/8" x 3/4" and 1" meters, a pressure regulator may be installed at the meter by the City to control varying pressures. (On meters 1 1/2" and larger, customer is responsible for installing a pressure regulator.) The City will not be responsible for damage from varying pressures. The Public Works Director or authorized person may inspect pipes and plumbing at proper,times. 12.10.100 Physical Connections with other Water Supplies or systems. Neither cross connections nor physical connections of any kind shall be made to any other water supply, whether private or public, without the written consent and approval of the City Council, and the written approval of the Oregon State Board of Health. (Included in this category are all pipe lines, appurtenances and facilities of the City system and all pipes, appurtenances, pumps, tanks, storage reservoirs, facilities, equipment, appliances, etc., of other systems whether located within or on public or private property, or the premises of a water customer.) The City's Public Works Director or other authorized representative shall have the right, at all reasonable times, to enter upon private property to inspect the premises of customers for physical connections with other water supplies. However, before entering upon private property, the Public Works Director or other authorized representative shall obtain the consent of an occupant or a warrant of the municipal court authorizing entry for the purpose of inspection. Any such connection shall be removed by the customer within ten days after written notice to remove is given by the City. If not removed within the time specified, the city may remove or discontinue any connection which it may have for servicing the property. No search warrant shall be issued until an affidavit has been filed with the municipal court, showing probable cause for the inspection, by stating the purpose and extent of the proposed inspection, citing this Chapter as the basis for the inspection, whether it is an inspection ii,_-tituted by complaint, or other specific or general information concerning physical connections with water supply systems violations. No person shall interfere with or attempt to prevent the Public Works Director or other authorized representative from entering upon private premises and inspecting the property when an emergency exists or the Public Works Director or authorized representative exhibits a warrant authorizing entry. 12.10.110 Cross Connection Control Program._ The purpose of this section is to protect the water supply of the City from contamination or pollution from potential cross connections; and to assure that approved backf low devices are tested annually as follows: (a) The installation or maintenance of any cross connection which would endanger the water supply of the City is prohibited. Any such cross connection now existing or hereafter installed is hereby declared unlawful and shall be rectified as directed by the City or its authorized representative(s). (b) The control or elimination of cross connections shall be in accordance with the regulations of Oregon State Health Division. The policies, procedures, and criteria for determining appropriate levels of protection shall be in accordance with the Accepted Procedure and Practice in Cross Connection Control Manual, Amer. Water Works Association, Pacific Northwest Section, current edition (OR Admin. Rules, Ch. 333-61.070). (c) It shall be the objective of the City to protect the potable water system from contamination or pollution due to cross connections. Water service to any premises shall be contingent upon the customer providing cross connection control in a manner approved by the City. Backflow devices required to be installed shall be a model approved by the Oregon State Health Division. (d) Authorized employees of the City with proper identification shall have free access at reasonable hours of the day to those parts of a premise or within buildings to which water is supplied. Water service may be refused or terminated to any premise for failure to allow necessary inspections. (e) These requirements must be strictly observed as a matter of public health and to prevent any possible contamination of the water system. 12.10.120 Payment - Delinquency. All bills are due on the 12th day of the calendar month following billing. The amount due must be paid to an authorized agent of the City. Unpaid bills become delinquent after the 12th of the month. When a delinquent bill is not paid, or a rule is violated, the water will be shut off and service disconnected until payment is received in full, and compliance with all rules is made. Prior to termination of service, notice shall be given as provided by ORS 91.255(3), if applicable. 12.10.130 Water Rates. All rates, fees and charges shall be set by resolution of the Tigard City Council. 12.10.140 Discontinuance of Service. Discontinuance of service for 30 days or more will be made ,i upon written application, without charge, provided all bills are paid. l 12.10.150 Interrupted Service - Changes in Pressure. The water may be shut off at any time for repairs or other necessary work with or without notice. Conditions may cause a variation of the pressure. The City will not be responsible for any damage caused by interruption of service or varying pressure. When service is interrupted, hot water faucets should be kept closed to prevent backflow of hot water or steam. 12.10.160 Service Connection Maintenance. The City will maintain all standard service connections in good repair without expense to the customers. Each customer is required to use reasonable care and diligence to protect the water meter and meter box from loss or damage by freezing, hot water, traffic hazards, and other causes, in default of which, such customer shall pay to the City the full amount of the resulting damage. 12.10.170 Main Extensions. (a) Designed and Installed by the City. All extensions of mains and laterals of the City, and installed by the City, shall be paid for by the 5 applicant, at cost plus 10% for overhead and supervision, and 8% for engineering. The estimated cost thereof, together with such 18%, shall be deposited with the City when application for such main extensions is made. (b) Designed by Others, Installed by the City. When design or supervision of installation of improvements is performed by licensed engineers, subject to approval by the City, and installed by the City, a fee shall be paid of 10% for administration, inspections, water loss, sampling, etc., and 2% for engineering review. The estimated cost thereof, together with such 12%, shall be deposited with the City when application for such main extensions is made. (c) Designed and Installed by Others. When design or supervision of installation of improvements is performed by licensed engineers, and installation is performed and paid for by others, subject to approval by the City, a fee of 12% of construction costs shall be imposed for development charges. Size of such extensions, type of pipe, location, gate valves, fixtures, fire hydrants and other fittings shall be under City specifications and subject to City approval, and such mains shall be laid from the end of the existing main to the far end of the property to be served. No lines or laterals shall be laid until the estimated cost thereof, as hereinabove set forth, shall have been deposited with the City. All such extensions of mains and laterals, and installation of fire hydrants shall be the sole property of the City, without right of immediate refund on the part of the person or persons paying for such extension or on the part of any person or persons whomsoever. No extension of main will be permitted, accepted or served by the City unless such line be at least a 6-inch diameter pipe. Short extensions, such as cul-de-sacs, can be of small diameter upon approval of the City. When a person is required to pay the cost of extending a water main adjacent to property other than that person's own so that water service for domestic use is provided for such other property without further extension of the water main, the City shall require the owner of the other property, prior to providing water service to that property, to refund to the person required to pay the cost of extending the water main, a pro rate portion of the cost of extension. The right to require such refund shall not continue for more than 10 years after the date of installation of the extension of the water main. The amount to be refunded shall be determined by the City and such determination shall be final. Each construction contractor shall be approved by the City's Public Works Director prior to installing pipe lines, pumps, etc. Those installations made by private contractors will be thoroughly inspected and approved by the City to ensure compliance with plans and specifications. Back-filling of trenches prior to City approval is unauthorized. If water main extension is necessary to serve an existing single family dwelling and the main size required by the City is larger than a 6" installation across the front of their property, plus the cost of the meter. The developer or owner requesting the construction project shall be liable for any added cost due to design difficulties. Applicant(s) will agree to be bound by and comply with the City's main extension policy and rules and regulations and any subsequent revisions or amendments to same which may be made from time to time. 12.10.180 Limitation on the Use of Water. Limitation on the use of water as to hours, purpose, or manner may be prescribed from time to time by resolution of the City council. 12.10.190 Temporary or Transient service. Temporary or transient service for construction work will be rendered upon deposit in advance of connection charge and one month's estimated water bill, and payment on the first of each month of all accrued charges. Upon discontinuance of service, refund will be made for all connection materials usable by the City at their depreciated value, less the cost of removal and all charges due. No temporary service shall be installed for any residence or building where permanent service connection may later be installed. 12.10.200 Construction Water. Rates, fees and charges for water used via a permanent meter installation for construction purposes shall be set by resolution of the City Council. The charges shall be billed at completion of construction, but shall not exceed a period of 6 months, unless authorized by the City. 12.10.210 Meter Out-of-Order - Test. All If a meter shall fail to measure accurately, the bill shall be the average for the same periods in prior years. Tests will be made periodically without charge to the customer. A customer may demand a test upon payment of a charge for such test. The rates, fees and charges for this test shall be set by resolution of the City Council. 12.10.220 Fire Hydrants. Fire hydrants will be installed by the City upon receipt of payment in advance of the estimated cost of the hydrant, fittings, and installation, plus 10% for overhead. 12.10.230 Fire Hydrant - Temporary Use. Any person who desires to use a fire hydrant for temporary water supply must obtain permission of the City. The charge for temporary use shall be set by resolution of the City Council. Customer is responsible for repair and/or replacement of damaged meter. 12.10.240 Illegal Use of Fire Hydrant or Meter. The penalty for connection to a fire hydrant or meter without proper authority is a $100 fine. 12.10.250 Amendments - Special Rules - Contracts. The City may at any time amend, change or modify any rule, rate or charge, or make any special rule, rate or contract, and all water service is subject to such power. 12.10.260 Grievances. Any grievance as to service or complaints shall be made to the Public Works Director, who shall attempt to resolve the problem. Any unresolved grievances as to service or complaints shall be reported and will be considered by the Intergovernmental Water Board at the Board's next meeting. 12.10.270 The Public Works Director and Authorized Representatives. The Public Works Director or an authorized representative are not authorized to make any changes in these rules, rates, or regulations. ach\tignd\jmc\jwa\wtertigrd.exa RESOLUTION NO. ? i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TIGARD, OREGON, SETTING RATES, FEES AND CHARGES FOR WATER AND WATER RELATED SERVICES. WHEREAS, Chapter 12.10 of the Tigard Municipal Code provides that fees and charges for water and water related services be established by resolution of the City Council; and WHEREAS, the City Council finds that the following fees and charges are. reasonable and necessary as a means for funding water and related water services management within the City; now, therefore: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TIGARD: Section 1. The following fees and charges are hereby established for all water customers within the City: (a) Meter Installation Charges; Copper Service, including P-R Valve if required; Connection Fee; Size of Meter Charge Schedule: System Development Installation Total Meter Size Charge Fees Charges 5/81lx3/4" $845 + $325 = $1170 1" 1690 + 435 = 2125 1 1/2" 4225 + 715 = 4940 2" 6760 + 945 = 7705 3" 13,520 + cost plus 10% 4" 21,125 + cost plus 10% 6" 42,250 + cost plus 10% 8" 67,600 + cost plus 10% 10" 97,175 + cost plus 10% (I) Bull Mountain Meter Rates 5/81lx3/4" $1000 + $325 = $1325 1" 2000 + 435 = 2435 1 1/2" 5000 + 715 = 5715 2" 8000 + 945 = 8945 3" 16,000 + cost plus 10% 4" 25,000 + cost plus 10% 6" 50,000 + cost plus 10% 8" 80,000 + cost plus 10% 10" 115,000 + cost plus 10% (II) Fire Service Connection: Fee $1,250 per Fire Service Tap + 12% Fee based on Construction Costs. (b) Water Rates: Monthly Minimum* Out of District Meter Size (400 cubic feet) (additional) 5/81lx3/4" $ 7.15 $ 2.75 1" 11.55 4.40 1 1/2" 18.15 6.60 21' 36.85 11.00 3" 67.65 16.50 4" 113.85 20.90 6" 158.95 30.80 8" 221.10 41.80 (I) Rate over 400 cubic feet: $1.32 per 100 cubic feet. (II) Fire Rates (Sprinklers) will be based on the size of the service going into the building or vault: $15 a mo. - 6" & smaller $20 a mo. - 8" & larger (III) Booster Pumps: For areas served by District owned and operated booster pumps, either to storage or direct to the system, an additional minimum of $1.50 per month per meter (regardless of meter size) shall be made. This charge is not applicable to the booster pumps located at SW 72nd and Hunziker Road and SW Bonita Road near I-5. (IV) * Note: Billing is bi-monthly so amounts above should be multiplied by 2 to compute bill for each period. (V) Charge for turning water off and on when water service is discontinued for non-payment of bill: $5.00 for the first two times; $10.00 thereafter. Section 2. Fire Hydrant - Temporary Use. Any customer who has obtained permission from the City to use a fire hydrant for temporary water supply will be charged $25.00 for hook-up service plus the effective customer rate pursuant to Section (1)(b) of this resolution, plus $25.00/month for continued use. ach\tigard\jmc"\wtertgrd.res MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor and City Council FROM: Patrick J. Reilly, City Administrator DATE: December 16, 1993 SUBJECT: Council Statement of Priorities 1993-94 The purpose of this memorandum is to provide you with a progress report on this year's priorities. This matter has been scheduled for discussion on the December 21, 1993 agenda. BOLD AND CAPITAL LETTERS SIGNIFY CHANGES FROM NOVEMBER REPORT. • CONTINUE TO PURSUE ONE WATER PURVEYOR FOR THE CITY OF TIGARD Considerable progress has been made. As of January 1, 1994, the City of Tigard will be in the water business, having withdrawn from the Tigard Water District and the Southeast Washington County Joint Water Agency. No timeframe has been established for withdrawal from the Tualatin Valley Water District. • DEVELOP A LONG-TERM FINANCIAL PLAN, INCLUDING A CAPITAL IMPROVEMENT PLAN COMPONENT We are in the early stages of preparing revenue estimates and assembling information for preparation of the financial plan. THIS ENDEAVOR WILL COINCIDE WITH COUNCIL DEVELOPMENT OF A 5- YEAR ACTION PLAN. • CONTINUE TO IMPLEMENT A PROACTIVE ANNEXATION STRATEGY TOWARDS THE WALNUT ISLAND The double annexation approach has been attempted without success, as of this writing. Council will be reviewing strategy SUBSEQUENT TO FIRST OF THE YEAR. • FULLY IMPLEMENT CITIZEN INVOLVEMENT TEAMS The first THREE months of CITs have been completed. This new concept of public participation has been met with a most positive reaction. Attendance has been good. Meeting participation has been excellent. WE ANTICIPATE SETTING UP A MEETING IN JANUARY WITH FACILITATORS AND COUNCIL TO REVIEW PROGRESS. • CLARIFY BOARD AND COMMITTEE ROLES, SUBSEQUENT TO THE ENACTMENT OF CIT'S To date, there has been no review of the roles of the Planning Commission, Library Board or 99W Task Force. • CONDUCT A TRANSPORTATION STUDY FOCUSED ON LOCAL-SXSTEM IMPROVEMENTS Background information is being compiled. Target for study to commence is late winter. Council discussion expected in January. • DEVELOP A PROGRAM FOR PROSPECTIVE COMMUNITY LEADERS. EXPLAINING WHAT IT TAKES TO BE A CITY COUNCILOR No work to date. • REVIEW DEVELOPMENT CODE TO INCREASE PROTECTION OF EXISTING NEIGHBORHOODS WHICH ABUT NEW COMMERCIAL DEVELOPMENT No work to date. • ASSESS STATUS AND COMPLETE INVENTORY OF GOAL 5 RESOURCES CITY COUNCIL APPROVED A PLANNING COMMISSION RECOMMENDED COMPREHENSIVE PLAN AMENDMENT WHICH SETS FORTH A PROCESS TO COMPLETE OUR WETLANDS INVENTORY, WHICH SATISFIES OUR PERIODIC REVIEW REQUIRM4ENT. WE HAVE RECEIVED A DSL GRANT TO CONDUCT A WETLANDS INVENTORY AND EVALUATION. THE FOREST AREA STUDY IS UNDERWAY, WITH TARGETED COMPLETED BY SPRING. • POSITION TIGARD AS A PLANNED ECONOMIC ACTIVITY CENTER Monitoring of the 2040 plan continues. The forthcoming Triangle Plan has focused on mixed uses, including high density residential, which will be a criteria of such centers. The city's downtown area has been selected for a design image project associated with 2040 AND SEVERAL RELATED MEETINGS HAVE BEEN HELD. • REVIEW CITY CHARTER AND CONDUCT CHARTER AMENDMENT ELECTION THE COUNCIL HAS AUTHORIZED PLACEMENT OF THE CHARTER AKENDMENT ON THE MAY BALLOT. AMENDMENT IS TARGETED TO GIVE COUNCIL MORE FLEXIBILITY IF VACANCY OCCURS AND REMOVES RESTRICTION THAT APPOINTED INDIVIDUAL CANNOT RUN FOR OFFICE. • INVENTORY PEDESTRIAN/BIKEWAY NEEDS ON A CITY-WIDE BASIS No work to date. PRESENTATION TO CIT'S IS EXPECTED IN FEBRUARY OR MARCH. f h:\1ogin\pat\STATUSRP.12