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City Council Packet - 12/28/1993Revised - 12/23/93 PUBUC 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. A,~ CITY OF TIGARD OREGON Times noted are m t • it is reco: ?mended that persons interested in testifying be present by 7.15 p.m. to sign in on the testimony sign-in sheet Business agenda items can b heard in order after 730 v-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 6842772 (TDD - 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 6842772 (fDD - Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA COUNCIL AGENDA - DECEMBER 28, 1993 - PAGE 1 Revised 12/23/93 TIGARD CITY COUNCIL ` BUSINESS MEETING AGENDA DECEMBER 28, 1993 AGENDA 1. BUSINESS MEETING (6:30 P.M.)) 1.1 Can to Order - City Council & Local Contract Review Board 1.2 Roll Call 1.3 Pledge of Allegiance 1.4 Council Communications/Liaison Reports 1.5 Call to Council and Staff for Non-Agenda Items 2. VISITOR'S AGENDA (Two Minutes or Less, Please) 3. CONSENT AGENDA: These items are considered to be routine and may be enacted in one motion without separate discussion. Anyone may request that an item be removed by motion for discussion and separate action. Motion to: 3.1 Approve Cooperative Assistance Agreement - County-Wide Emergency Response Plan 4. WATER ISSUES CONSIDERATION (Set over from the 12/21/93 Council Meeting) • City Administrator 4.1 Review and Approve Intergovernmental Agreements for Delivery of Water Service a. Tigard Water District - Resolution No. 934A b. King City - Resolution No. 93105 C. Durham - Resolution No. 93-kCs 4.2 Review and Approve Ordinance Authorizing the Imposition of Water System Rules and Regulations - Ordinance No. 93-3. 4.3 Review and Approve Resolution Setting Rates, Fees and Charges for Water and Water Related Services - Resolution No. 93-1 COUNCIL AGENDA - DECEMBER 28, 1993 - PAGE 2 Revised 112/23/93 5. PUBLIC HEARING -1993 SUPPLEMENTAL BUDGET FOR WATER ACTIVITIES • Open Public Hearing • Declarations or Challenges • Staff Report - Finance Director • Public Testimony Proponents Opponents • Council Questions and Comments • Close Public Hearing • Council Consideration: Resolution No. 9,94V 6. NON AGENDA ITEMS 7. 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. 8. ADJOURNMENT aoal228.39 4 COUNCIL AGENDA - DECEMBER 28, 1993 - PAGE 3 i Council Agenda Item TIGARD CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 • Meeting was called to order at 6:30 p.m. by Mayor Jerry Edwards. 1. ROLL CALL Council Present: Mayor Jerry. Edwards; Councilors Judy Fessler, Wendi Hawley, Paul Hunt, and John Schwartz. Staff Present: Patrick Reilly, City Administrator; Finance Director Wayne Lowry; Tim Ramis, Legal Counsel; and Catherine Wheatley, City Recorder. BUSINESS MEETING 2. VISITOR'S AGENDA: No visitors. 3. CONSENT AGENDA: 3.1 Approve Cooperative Assistance Agreement - County-Wide Emergency Response Plan Motion by Councilor Schwartz, seconded by Councilor Fessler, to approve the Consent Agenda. Motion was approved by unanimous vote of Council present. (Mayor Edwards and Councilors Fessler, Hawley, Hunt, and Schwartz voted "aye.") 4. WATER ISSUES CONSIDERATION (Set over from the 12/21/93 Council Meeting) City Administrator Reilly summarized the process to date, advising that several items, including the Intergovernmental Agreements, were before the Council for consideration. Councilor Schwartz noted all issues had been resolved with the cities of King City and Durham taking the lead at the last meeting to address two remaining outstanding issues. He noted the Tigard Water District Board would receive an operating budget for one year (maximum amount of $40,000). The Water District budget would be submitted to the other agencies for review. CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 - PAGE 1 King City asked that: 'The term of the agreement 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 ten years prior to the effective date of termination." (The agreement had previously stated five years; the parties agreed that ten years would be acceptable). It was not agreed that Tigard Water District would have veto authority over long term water source plans or capital improvement projects. 4.1 There was brief discussion on naming the City member on the intergovernmental Water Board created under Section 3 of the intergovernmental Agreements. Councilor Hawley nominated Councilor Schwartz to serve as the City's member. Councilor Hunt advised he would also like to place his name forward for consideration as a member to the Intergovernmental Water Board. Councilor Hawley suggested Councilor Schwartz be named the primary member, and that Councilor Hunt be named as alternate. Motion by Councilor Fessler, seconded by Councilor Hawley, to designate Councilor Schwartz as member to the Intergovernmental Water Board and that Councilor Hunt serve as alternate. Motion was approved by a majority of Council present (4-1) (Mayor Edwards, Councilors Hawley, Fessler, and Schwartz voted "yes"; Councilor Hunt abstained from voting). 4.1(a) RESOLUTION 93-64 - A RESOLUTION OF THE CITY COUNCIL, CITY OF TIGARD, OREGON, APPROVING THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF TIGARD AND THE TIGARD WATER DISTRICT, AUTHORIZIMG THE MAYOR TO SIGN THE AGREEMENT, AND APPOINTING THE CITY'S MEMBER AND ALTERNATE TO THE INTERGOVERNMENTAL WATER BOARD CREATED UNDER SECTION 3 OF THE AGREEMENT. Motion by Councilor Schwartz, seconded by Councilor Hawley, to approve Resolution No. 93-64. Motion was approved by unanimous vote of Council present. (Mayor Edwards and Councilors Fessler, Hawley, Hunt and Schwartz voted "aye") CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 - PAGE 2 4.1(b) RESOLUTION 513-65 - A RESOLUTION OF THE CITY COUNCIL, CITY OF -TIGARD, OREGON, APPROVING THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF TIGARD AND THE CITY OF KING CITY, AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT, AND APPOINTING THE CITY'S MEMBER AND ALTERNATE TO THE INTERGOVERNMENTAL WATER BOARD CREATED UNDER SECTION 3 OF THE AGREEMENT. Motion by Councilor Hawley, seconded by Councilor Fessler, to approve the Resolution as amended, noting that on Page 2 of the Intergovernmental Agreement, Section 2, Term, that either party could terminate the agreement by providing written notice to the other party a minimum of ten years prior to the effective date of termination. Motion was approved by unanimous vote of Council present. (Mayor Edwards and Councilors Fessler, Hawley, Hunt and Schwartz voted "aye 4.1(c) RESOLUTION 93-66 - A RESOLUTION OF THE CITY COUNCIL, CITY OF TIGARD, OREGON, APPROVING THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF TIGARD AND THE CITY OF DURHAM, AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT, AND APPOINTING THE CITY'S MEMBER AND ALTERNATE TO THE INTERGOVERNMENTAL WATER BOARD CREATED UNDER SECTION 3 OF THE AGREEMENT. Motion by Councilor Fessler, seconded by Councilor Hawley, to approve Resolution 93-66. Motion was approved by unanimous vote of Council present. (Mayor Edwards and Councilors Fessler, Hawley, Hunt and Schwartz voted "aye 4.2 Council reviewed the Ordinance Authorizing the Imposition of Water System Rules and Regulations: ORDINANCE NO. 93-34 - AN ORDINANCE OF THE CITY OF TIGARD, OREGON, AUTHORIZING THE IMPOSITION OF WATER SYSTEM RULES AND REGULATIONS, AND DECLARING AN EMERGENCY. CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 - PAGE 3 Motion by Councilor Schwartz, seconded by Councilor Fessler, to adopt Ordinance No. 93-34. Motion was approved by unanimous vote of Council present (Mayor Edwards, Councilors Fessler, Hawley, Hunt, and Schwartz voted "aye"). 4.3 Council reviewed the Resolution Setting Rates, Fees and Charges for Water and Water Related Services. RESOLUTION NO. 93-67 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TIGARD, OREGON, SETTING RATES, FEES AND CHARGES FOR WATER AND WATER RELATED SERVICES. Motion was approved by unanimous vote of Council present. (Mayor Edwards, Councilors Fessler, Hawley, Hunt, and Schwartz voted "aye"). 5. PUBLIC HEARING -1993 SUPPLEMENTAL BUDGET FOR WATER ACTIVITIES. a. Mayor Edwards opened the Public Hearing. b. There were no declarations or challenges. C. Finance Director Lowry was present to answer questions and review the staff report. He provided clarification, subsequent to a question by Councilor Hawley that the carry-forward balances represented the budget figures obtained from the Joint Water Agency and Water District operations. d. There was no Public Testimony. e. Council Comments: Councilor Hawley noted she was very pleased with the successful conclusion of this effort. She advised Council was to be commended for taking a leadership role on this issue. Councilor Hunt acknowledged City Administrator Reilly with worts of praise for his success in persuading all parties to work together. f. Public Hearing was closed. g. RESOLUTION NO. 93-68 - A RESOLUTION CREATING THE WATER GENERAL FUND, THE WATER CAPITAL PROJECTS RESERVE FUND, THE WATER SDC FUND AND THE WATER DEBT SERVICE FUND, AND APPROVING A SUPPLEMENTAL BUDGET FOR 1993\94. h. Motion by Councilor Schwartz, seconded by Councilor Hunt, to approve Resolution No. 93-68. CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 - PAGE 4 Motion was approved by unanimous vote of Council present. (Mayor Edwards, Councilors Fessler, Hawley, Hunt, and Schwartz voted "aye".) i. City Administrator Reilly thanked members of staff and noted Legal Counsel, Jim Coleman, deserved a great deal of credit for his efforts in making the agreements understandable and for helping bring this effort to a successful conclusion. Mr. Reilly also thanked Mayor Manning from Durham and Mayor Jenkins from King City and Tigard Water District Board Chair Haunsperger for their continuing cooperation and participation in the numerous meetings. City Administrator Reilly invited City Council to a reception welcoming the Water employees to the City of Tigard. This reception will be Monday, January 3, 1994 at 8:00 a.m. in Town Hall. 6. CALENDAR ITEMS: City Administrator Reilly noted there would be a ribbon cutting for the Dartmouth Street opening at 4:00 p.m. on January 6, 1994. There will be a ribbon cutting for the Home Depot Grand Depot on January 6, 1994 at 10:00 a.m. 7. EXECUTIVE SESSION: The Tigard City Council went into Executive Session at 6:51 p.m. under the provisions of ORS 192.660 (1) (d), (e), & (h) to discuss labor relations, real property transactions, current and pending litigation issues. 8. ADJOURNMENT: 7:05 P.M. Attest: "I „ Catherine Wheatley, City Recor r aGr, City of Tigard C0UACZt Prt2514,t Date l/l5lglLl c=1228.93 CITY COUNCIL MEETING MINUTES - DECEMBER 28, 1993 - PAGE 5 E c ~ I v COMMUNITY NEWSPAPERS, INC. Legal - , P.O. BOX 370 PHONE (503) 684.0360 NotieeTT 7741 IOU 2 9 1993 BEAVERTON. OREGON 97075 1 r (:0'y OF TIGARD Legal Notice Advertising *City of Tigard • ❑ Tearsheat Notice 13125 SW Hall Blvd. •Tigard,Oregon 97223=8199 ° ❑ Duplicate Affidavit • The following meeting highlights are published for your information: Full d from the City Recorder, 13125 S:W. Hall . agendas may. be obtaine Boulevard, Tigard, Oregon 97223, or by calling 639-4171'.,.. - EETING CITY CO IL BUSINESS 28, 1993 DEC AFFIDAVIT OF PUBLICATION TIGARD CITY HALL-TOWN HALL 13125 SW HALL BOULEVARD, TIGARD, OREGON STATE OF OREGON, ) as . COUNTY OF WASHINGTON, ~ I K?+h _ BUSINESSMEETIAIG6.3Gp..m.: ~ I am the Advertising ` being first depose and say that = 1., public Hearings= a Director, or his principal clerk, of the Ti Brd -T,aI at-in T a newspaper of general circPtion a defined in ORS 193.010 ar a . 1993/94SuppkMentalBudget-Creating FourWaterFunds.-. g in the and 193.020; published a? aforesaid county and state; that the ' Locational Contract Review Board Meeting. ri+V r n,+ncil Rus 14tg a printed copy of which is hereto annexed, was published in the Executive Session: The Tigard City Council mayy go into Executive 660 (1) (d), (e), & (h) to dis- ions of ORS 192 i entire issue of said newspaper for ONE successive and . s Session under the prov cuss labor relations, real property transactions, current and pending consecutive in the following issues: litigation issues. December 2 3 ,19 9 3 '1T'7741- Publish December 23.1993.. - Subscribed and sworn t be ore me this23rd day of Decemb OF=!CIAL SEAL 1 ROBIN A. BURGESS / . NOTARY PUBLIC - OREGON N e Public for Oregon CON-.M SSiON NO. 024552 pAY COAtMIS:ION E+(P!RES MAY 16.1997 My Commission Expires: AFFIDAVIT - CITY OF TIGARD, OREGON AFFIDAVIT OF POSTING In the Matter of the Proposed O- &,,&e. 9 3 - 3 STATE OF OREGON ) County of Washington ) ss. City of Tigard ) begin first duly sworn, on oath, depose a d say: That I po d in the f Ilowing public and conspicuous places, a copy of Ordinance Number (s) which were adopted at the Council Meeting dated -s copy(s) of said ordinance(s) being hereto attached and by reference made a part hereof, on the day of 19 r V It 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 Subscribed and sworn to before me this 5 day of 19 yC m. o=F CIALSEAL Notary lic for Oregon R1. JOANN HAYES NOTARY PUDLIC-OREGON GOMMISSIONNO.OG6513 My Commission Expires: Mft 5 t qS MY COMMIS310N EXPOES MAY 5. 1995 loain\io\affoost ORDINANCE NO. q3--3q 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. r- BY ill aR'IMO S vote of all Council members present after being read by number and title only, this a S Q" day of DPtzrnb4~~ 1993. C~.th E1 t ivy f ll~ by Catherine Wheatley, City ecorder APPROVED : This a ~h day of/ / C2t r,.IOe1t~ , 1993. I Gerald ~R; dwards, mayor Approved as to form: y Attorney iD /aS rG3 Date ach\tigard\jmc\jwa\water\wtertigrd.ord EXHIBIT "A" Chapter 12.10 WATER SYSTEM RULES AND REGULATIONS 12.10.010 A lication 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 f o some en services. The size of meter shall be determined by the City City shall prescribe the number of buildings to be served from one meter and such determination shall be final. No customer furnish water to any family, business, institution, wever , that other than those occupied by that customer; provided others through the City council may permit a customer to supply 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 perm supply others through customers' service connection in which event r such customer will be charged an additional monthly minimum for 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 through 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 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 i:a an inspection instituted 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 prorarty when an emergency exists or the Public Works Director or authorized representative exhibits a warrant authorizing entry. 12.10.110 Cross Connection Control Proctram. 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 backflow 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 - Delinctuenc 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 bs made upon written application, without charge, provided all bills are paid. 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 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. 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. 12.10.280 Power to Grant Variances. (a) Except when prohibited by subsection b 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. (b) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. ach\dgazd\j-\j -\wcercigr&cxa AGENDA ITEM NO. 2 - VISITOR'S AGENDA DATE: December 23 1993 (Limited to 2 minutes or less, please) Please sign on the appropriate sheet for listed agenda items. The Council wishes to hear from you on other issues not on the agenda, but asks that you first try to resolve your concerns through staff. Please contact the City Administrator prior to the start of the meeting. Thank you. Depsnding on the number of person wishing to testify, the Chair of the Council may limit the amount of time each person has to speak. We ask you to limit your oral comments to 3 - 5 minutes. The Chair may further limit time if necessary. Written comments are always appreciated by the Council to supplement oral testimony. AGENDA ITEM NO. 5 PATE:.. December 28, 1993 PUBLIC HEARING - 1993 SUPPLEMENTAL BUDGET FOR WATER ACTIVITIES PLEASE SIGN IN TO TESTIFY ON THE ATTACHED SHEETS C 4 AGENDA ITEM NO. 5 PLEASE PRINT PLEASE PRINT in h:\Iogln\jo\tesft COUNCIL AGENDA ITEM 3.1 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY AGENDA OF: 12-28-93 DATE SUBMITTED: 12-16-93 ISSUE/AGENDA TITLE: Cooperative PREVIOUS ACTION: None Assistance Agreement 4ZZLII PREPARED BY: Ron Goodpaster nRPT HEAD OK CITY ADMIN OK REQUESTED BY: STAFF RECOMMENDATION Approval of agreement. INFORMATION SUMMARY Over the past year, the Police Department has attended planning meetings with the other agencies in Washington County to draft this county-wide emergency/disaster response plan. We have provided input into the process and have reviewed the final agreement. We have also had the City Attorney review the agreement for approval. The agreement establishes command systems and structures and addresses mutual aid, coordination of resource requeets, planning, personnel, and equipment issues when an emergency/disaster has been declared. Emergency Coordinator for Washington County is seeking Council's approval of this agreement. Once approval has been given, he will bring around the original agreement for signature. PROPOSED ALTERNATIVES None. FISCAL NOTES Agreement would mutually benefit all agencies. We are not equipped to handle an emergency/disaster and the outside resources would be critical to us. Fiscal impact would depend on incident. i Approval of an agreement regarding the City of Tigard's participation in a county-wide emergency response plan for the response to and management of emergency conditions and disasters. i Lo u n c; pa cl,,:~-f- Cu~oJ - 0C (Ji na( 4-o COOPERATIVE ASSISTANCE AGREEMENT This agreement is between the undersigned, hereinafter referred to as parties: Cac~ WITNESSETH• Whereas, parties to this agreement are responsible for the response to and management of emergency conditions and disasters; and "Ilk Whereas, each of the parties owns and maintains equipment, and employs personnel who are trained to provide various emergency response services; and Whereas, in the event of a major storm, earthquake, or other major emergency or disaster, any or all of the parties may need assistance; and Whereas, the parties may have necessary equipment and personnel to provide each other with supplemental support in the event of such an emergency; and whereas, the proximity of the parties enables them to provide mutual assistance to each other; and Whereas, a mechanism for requesting and allocating scarce resources during the life safety response period of emergencies is needed; and Whereas, ORS Chapter 190 provides for intergovernmental agreements and the apportionment among the parties of the responsibility for providing funds to pay for expenses incurred in the performance of the agreed upon functions or activities; Now therefore, the parties agree as follows: 1. DEFINITIONS Area Command (AC) - Comprised of one representative each from Fire, Law Enforcement and Public Works, AC coordinates resource requests from Zones, as well as to and from outside the County. Area Multi-Agency Coordination (MAC) - Comprised of representatives from each response agency in the County, this group sets policy and procedure for Area Command. Normally not active during incidents. Emergency Operations Center (EOC) - A facility from which response and recovery'efforts are coordinated. The County's EOC is located in the basement of the Jail. August 26, 1993 r Cooperative Assistance Agreement August 26, 1993 Incident Command System (ICS) - The combination of facilities, equipment, personnel, procedures, and communications operating within a common organizational structure with responsibility for the management of assigned resources to effectively accomplish stated objectives pertaining to an incident. Incident Commander (IC) - The person in charge of managing an incident. Resource - Equipment and/or personnel appropriate to the management of an emergency, excluding Tualatin Valley Fire and Rescue's State Sponsored Regional Hazardous Materials Team. Zone Command - Comprised of one representative each from Fire, Law Enforcement and Public Works, this group coordinates resource requests within a geographical Zone, as well as to and from the Zone. Zone Multi-Agency Coordination (MAC) - Comprised of one representative from each response agency within the Zone, this group sets policy and procedure for Zone Command prior to incidents. Normally not active during incidents. 2. ACTIVATION If a Zone Command is established this agreement is activated, and, as needed, supersedes other local emergency automatic or mutual aid agreements. 3. MUTUAL AID If confronted with an emergency situation (as defined in ORS 401) requiring equipment or personnel not available to the requesting party (requestor), the requestor may request assistance from any or all of the other parties. Upon receipt of such request, the party receiving the request (Responder) shall immediately take the following action: A. Determine whether it has the type of equipment and appropriately trained personnel available to respond to the request. B. Determine what available equipment and personnel should be dispatched. 2 Cooperative Assistance Agreement August 26, 1993 C. Dispatch available equipment and personnel to the designated location. D. In the event the needed equipment or personnel is not available, immediately advise the requestor of such fact. 4. COORDINATION OF RESOURCE REQUESTS The parties agree, in order to better manage resources, that Washington County shall be divided into three resource allocation zones to be managed by Zone Commands as follows: WEST ZONE: Those portions of Washington County receiving fire protection from Tri-City RFPD, Forest Grove RFPD, the City of Forest Grove, Gastcn RFPD, the City of Cornelius, Cornelius RFPD, and the adjacent unincorporated areas of Washington. County which lie west of the eastern boundaries of Tri-City RFPD and Forest Grove RFPD. CENTRAL ZONE: Those portions of Washington County receiving fire protection from the City of Hillsboro and Washington County RFPD #2, including that portion of Washington County which lies north of the north boundary of Washington County RFPD#2 and east of the east boundary of Tri-City RFPD. SOUTHEAST ZONE: Those portions of Washington County receiving fire protection from Tualatin Valley Fire and Rescue and the Beaverton Fire Department. When an emergency or emergencies which may require resources not immediately available within the jurisdiction exist, the Incident Commander(s) may request activation of the Zone Command. These Zone Commands, consisting of fire, law enforcement and public works representatives, will receive resource requests from incident commanders and attempt to obtain these resources, either from unaffected jurisdictions within the Zone or from the County. If requests for resources exceed available resources, Zone Command will allocate available resources based upon life-safety needs. If two or more Zone Commands are activated, the County will activate an Area Command, consisting of the fire, law enforcement, and public works coordinators within the County's Operations Group, which will coordinate resource requests from Zones, as well as to and from outside the County. Cooperative Assistance Agreement August 26, 1993 (See Attachment A) If only a single Zone Command is active, Area Command can be available to allocate resources. 5. INCIDENT COMMAND When personnel and/or equipment are furnished pursuant to this agreement, the person in charge of incident control in the jurisdiction where such incident occurs shall have supervision over the personnel and equipment furnished. Provided, however, when such officers shall not have arrived at the scene of the incident, the commanding officer of the party rendering aid shall be in command of the incident until the arrival of an officer of the party requesting aid, and during such time shall exercise all lawful authority of such jurisdiction. Units shall be released as soon as is practicable. Nothing in this agreement shall be construed to prevent the commanding officer of the personnel and equipment of the party rendering assistance from refusing, in the exercise of his/her best judgment and discretion, to commit personnel or equipment to a position in which danger of loss of life or equipment exists. The commanding officer of the party furnishing aid on duty at the scene of the incident shall be the sole judge of the extent and imminence of such danger. If the Incident Commander specifically requests a supervisor of the responder to assume command, that Incident Commander shall not, by relinquishing command, relieve the requestor of responsibility for the operation. 6. DOCUMENTATION Documentation of personnel hours worked and equipment/ materials used will be maintained by the responder and provided to the requestor on request. 7. RELEASE OF EQUIPMENT AND PERSONNEL All equipment and personnel used under this agreement shall be returned to the responder upon release by the requestor or demand by the responder. 4 Cooperative Assistance Agreement August 26, 1993 8. COMPENSATION All aid provided under this agreement within the first 12 hours from time of dispatch shall be provided at no charge to the requestor. After the first 12 hours charges may be levied. A list of labor and equipment rates from the responder will be given to the requestor at least four hours prior to the charges being levied to indicate that such charges will be in effect. Compensation may include: A. Compensation for workers at the responder's current pay structure including call back and overtime. B. Compensation for equipment at the responder's established rate. C. Materials shall be replaced in kind or paid for at current replacement costs. 9. WORKERS' COMPENSATION AND EMPLOYER LIABILITY Each party shall remain fully responsible as employer for all taxes, assessments, fees, premiums, wages, withholdings, and other direct and indirect compensation, benefits, and related obligations with respect to its own employees. Likewise, each party shall insure, self-insure, or both its own employees as required by Oregon Revised Statutes. 10. LIABILITY WAIVER AND RELEASE The participating jurisdictions, in furtherance of this Agreement, shall be providing equipment and personnel in some times hazardous situations. The parties recognize there are some inherent risks to equipment and personnel in performance of their responsibilities. Each jurisdiction shall be responsible for damage/loss to its own property and injury to its personnel while under loan to another jurisdiction under this Agreement except for such injury, damage and loss that is the direct consequence of the negligent conduct of the jurisdiction having supervision and control over personnel and equipment loaned to it under this Agreement. The jurisdiction that has supervision and control over personnel or equipment or both loaned to it under this Agreement shall hold the loaning - and other jurisdictions harmless from and indemnify them against any and all claims by persons not parties to this Agreement for personal - and bodily injury, death and property damage alleged to have resulted from the Borrowing jurisdiction's use of that personnel and equipment. Nothing in this Agreement is intended nor shall it be construed as imposing any liability on a jurisdiction for claims in excess of the Oregon Tort Claims Act. 5 Cooperative Assistance Agreement August 26, 1993 11. DISPUTE RESOLUTION The participating jurisdictions recognize and agree that this Agreement is a cooperative effort to provide a program for timely and appropriate response to major emergencies and/or disasters. It is further agreed that any dispute among the parties should be resolved in a cooperative fashion-and at the lowest level possible. In the event of any dispute, that cannot be resolved on an informal basis, the participating jurisdictions to the dispute shall use the following process: A. Any participating jurisdiction who believes they are aggrieved shall present their complaint in writing. The complaint shall be prepared by the complaining party's emergency command officer and presented to his or her counterpart with the party to whom the complaint is directed. The command officers shall meet and attempt to resolve the dispute. B. If the grieving party does not receive a response within 10 days of submission of the complaint or if the complaint remains unresolved after any meeting between the command officers, the grieving party's senior administrative official (e.g., Sheriff, Police Chief, Fire Chief) may pursue the complaint by presenting it in writing to his or her counterpart with the party to whom the complaint is made. The senior administrative officials shall meet and attempt to resolve the dispute. C. If the grieving party does not receive a response within 10 days of submission of the complaint or if the complaint remains unresolved after any meeting between the senior administrative officials, the grieving party may pursue the complaint by presenting it to its chief elected official (e.g., Chairman of the Board) who may meet with his or her counterpart with the party to whom the complaint is made. If a participating jurisdiction does not have an emergency command officer, any dispute shall be initiated at step 2. above. Any dispute that remains unresolved after utilizing the above process may be pursued by litigation. However, no party to this Agreement shall initiate any litigation arising from this Agreement or any performance by a party as a result of this Agreement, without first processing the dispute as described above. Any litigation that may be initiated shall be filed in the Washington County Circuit Court. Cooperative Assistance Agreement August 26, 1993 12. INSURANCE Each party to this Agreement shall purchase and maintain such insurance as will protect it from claims of third parties arising from its performance under this Agreement and in an amount not less that the Oregon Tort Claims Act. In lieu of acquiring insurance, any party may provide self-insurance as provided by law. 13. PRE-INCIDENT PLANNING The parties shall develop pre-incident plans for the type and locations of problem areas where emergency assistance may be needed, the types of equipment and personnel to be dispatched, and the training to be conducted to ensure efficient operations. Such plans shall take into consideration the proper protection by the responder of its own geographical area. The Zone MACS and the Area MAC will develop policy and procedures for implementing the resource management system enabled by this agreement. 14. REVIEW Y This agreement shall be reviewed at least every five years by the Area MAC. 15. TERMINATION Any party may terminate its participation in this agreement as follows: Written notice of intent to terminate this agreement must be given to all parties at least 30 days prior to termination date. This notice shall automatically terminate the agreement with the jurisdiction requesting the termination on the date set out unless rescinded prior thereto in writing. Such termination shall not affect the agreement among the remaining signatories. 16. NON-EXCLUSIVE This agreement is not intended to be exclusive among the parties. Any of the parties may enter into separate mutual aid agreements with any other party. No such separate agreement shall terminate any responsibility under this agreement unless it is terminated as provided in Section 15 of this agreement. f 7 Cooperative Assistance Agreement August 26, 1993 In Witness whereof, the parties hereto have caused this agreement to be executed by duly authorized representatives as of the date of their signatures. WASHINGTON COUNTY, OREGON CITY OF BANKS, OREGON BONNIE HAYS, CHAIR (DATE) BOARD OF COUNTY COMMISSIONERS REVIEWED: BY: JOHN M. JUNKIN, COUNSEL WASHINGTON COUNTY, OREGON CITY OF BEAVERTON, OREGON ROB DRAKE, (DATE) MAYOR REVIEWED: BY: PAMELA BEERY, ATTORNEY CITY OF BEAVERTON, OREGON HOWARD STEINBACH, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF BANKS, OREGON CITY OF CORNELIUS, OREGON NEAL KNIGHT, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF CORNELIUS, OREGON 8 Cooperative Assistance Agreement ( August 26, 1993 CITY OF KING CITY, OREGON LINDA JENKINS, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF KING CITY, OREGON CITY OF SHERWOOD, OREGON WALTER HITCHCOCK, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF SHERWOOD, OREGON 1 CITY OF NORTH PLAINS, OREGON ROBERT KINDEL JR, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF NORTH PLAINS, OREGON CI ~OF. `T-IGARD, OREG GERALD R. EDWAR S, ( TE) MAYOR REVIEWED: BY : I !i . ll I- I- ATTORNEY CITY OF TIG D, OREGON 10 j" Cooperative Assistance Agreement August 26, 1993 CITY OF DURHAM, OREGON PEGGY MANNING, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF DURHAM, OREGON CITY OF GASTON, OREGON LARRY EPLING, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF GASTON, OREGON CITY OF FOREST GROVE, OREGON RICHARD KIDD, (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF FOREST GROVE, OREGON CITY OF HILLSBORO, OREGON GORDON FABER, (DATE) MAYOR REVIEWED: BY: CITY OF HILLSBORO, ATTORNEY OREGON 9 Cooperative Assistance Agreement August 26, 1993 CITY OF TUALATIN, OREGON STEVEN L. STOLZE (DATE) MAYOR REVIEWED: BY: ATTORNEY CITY OF TUALATIN, OREGON WASHINGTON COUNTY FIRE DISTRICT #2 MIKE KROPP, PRESIDENT (DATE) BOARD OF DIRECTORS DICK DUYCK, CHIEF (DATE) WASHINGTON CO. FIRE DIST. #2 TUALATIN VALLEY FIRE & RESCUE SOPHIA PLATT, CHAIR (DATE) BOARD OF DIRECTORS JACK SNOOK, CHIEF (DATE) TUALATIN VALLEY FIRE & RESCUE TRI-CITY RURAL FIRE PROTECTION DISTRICT HENRY SCHMIDLIN, BOARD CHAIRMAN (DATE) JOHN SCHLEGEL, TRI-CITY RFPD CHIEF (DATE) ii i Cooperative Assistance Agreement August 26, 1993 CORNELIUS RURAL FIRE PROTECTION DISTRICT MELVIN FINEGAN, BOARD CHAIR CORNELIUS RFPD CHRIS ASANOVIC (DATE) CHIEF GASTON RURAL FIRE PROTECTION DISTRICT JOHN BEGERT GASTON RFPD BOARD CHAIR RON HOODENPYL, CHIEF (DATE) FOREST GROVE RURAL FIRE PROTECTION DISTRICT ROBERT EPLER,BOARD CHAIR FOREST GROVE RFPD ROBERT DAVIS, (DATE) CHIEF 12 Attachment A l WASHINGTON COUNTY EARTHQUAKE TASK FORCE RESOURCE ALLOCATION MODEL (MULTI-ZONE INCIDENT) COUNTY AREA AREA EXECUTIVE COMMAND MAC GROUP AUTHORITY GROUP COUNTY OFFICE OF EMERGENCY MANAGEMENT (Staff Support, Plans, Logistics, PIO, etc.) SOUTHEAST ZONE COMMAND - Beaverton - Tigard - Durham - Tualatin - Sherwood - King City - Washington Co. - TVF&R CENTRAL ZONE COMMAND - Hillsboro - North Plains - Wash. Co. RFPD #2 - Washington Co. WEST ZONE COMMAND - Cornelius - Forest Grove - Gaston - Banks - Tri-City RFPD - Washington Co Central Zone MAC West Zone MAC Southeast Zone MAC COUNTY EXECUTIVE GROUP: Board of County Commissioners, County Administrator, County Counsel, Director of Emergency Management AREA COMMAND: Comprised of one representative each from Fire, Law Enforcement and Public Works, AC coordinates resource requests from Zones, as well as to and from outside the County. AREA MULTI-AGENCY COORDINATION COMMAND: Comprised of representatives from each response agency in the County, this group sets policy and procedure for Area Command. Normally not active during incidents. ZONE COMMAND: Comprised of one representative each from Fire, Law Enforcement and Public Works, this group coordinates resource requests within a geographical zone, as well as to and from the Zone. ZONE MULTI-AGENCY COORDINATION COMMAND: Comprised of one representative from each response agency within the Zone, this group sets policy and procedure for Zone Command prior to incidents. Normally not active during incidents. 13 4 t a- 42 INTERGOVERNMENTAL AGREEMENT \ ~~?ILM 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 (12/23/93 - FINAL) 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. 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 ten 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. 3. 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/WATER DISTRICT - 2 (12/23/93 - FINAL) 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. Vaca.ncisz may i`e filled 4Ln file 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<-t. excluding] 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/WATER DISTRICT - 3 (12/23/93 - FINAL) (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. 4. Division of Original District Assets. A. Pursuant to ORS 222.540(4), the District agrees that the division of assets after withdrawal from the original District by the Cities shall be consistent with the following concepts: (1) Assets include real, personal and intangible property. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 4 (12/23/93 - FINAL) "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. (2) Assets will be divided into two groups: a. System Assets: Assets necessary for the operation of Tigard's water supply system throughout the original District, not including those "other assets" of Tigard. Personal and intangible property are system assets. Water mains, service installations, structures, facilities, improvements or other property necessary for operation of the City of Tigard's water supply system throughout the original District are system assets. b. Other Assets: Assets not necessary for the operation of the City of Tigard's water supply system throughout the original District. Other assets shall become the property of the jurisdiction in which the asset is located. Water mains, service installations, structures, facilities, improvements or other property not necessary for the operation of the City of Tigard's water supply system throughout the original District are other assets. B. All system assets and other assets shall be pledged by the Cities and the District to Tigard. All system assets and other assets shall be managed by Tigard and shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. C. Should one of the Cities or the District terminate its water service agreement with Tigard, the Cities' and the District's proportionate interest in a system asset shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District The Cities' and the District's proportionate interest in a system asset capital improvement shall be based upon the capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 5 (12/23/93 - FINAL) method of depreciation. D. Upon termination of this Agreement, other assets shall become the property of the jurisdiction in which the asset is located. 5. Asset Ownership/Water Rates/Revenues. A. Tigard's Utilization of Assets. (1) The Parties agree that all system assets in which the Parties have an undetermined proportionate interest and all other assets received 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 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. (2) 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. (3) 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. (4) 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 1 INTERGOVER14MENTAL AGREEMENT TIGARD/WATER DISTRICT - 6 (12/23/93 - FINAL) 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 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. (5) 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 INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 7 (12/23/93 - FINAL) in both Tigard and the remainder of the original District, except i~ 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. Moneys/Revenues. (1) Moneys and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) 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) Moneys deposited in a reserve fund for revenue bonds of the water system are not a system asset and are not subject to the system asset distribution formula in Section 4 of this Agreement. (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, ,f 3 INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 8 (12/23/93 - FINAL) 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 District's Capital Improvement Plan dated [June, 1993], will guide Tigard's spending on capital projects until a capital improvement program is adopted pursuant to subsection (b). (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 a system asset or other asset. (3) Capital improvements made subsequent to entering into this Agreement that are determined 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 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 formula in Section 4.D. of this Agreement. (4) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of all 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. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 9 (12/23/93 - FINAL) (5) 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. 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. A governing body may not unreasonably withhold consent to a contract if the contract 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 long-term water supply contract 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 contract has been unreasonably withheld. F. The District shall receive an annual rebate equal to 1% of the previous year's water sale revenue within the District for it District expenses. In addition, Tigard[, at the District's request,] will appropriate and deliver frem its> [an amount not to exceed $40,000 from Tigard's] initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995. [Tigard will reimburse the District from water system revenues the cost of the District's Division of Assets study undertaken to fulfill the District's obligations pursuant to ORS 222.540.] G. 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. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 10 (12/23/93 - FINAL) (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. H. 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. I. 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. Tigard is authorized to perform the function and activity of incurring water revenue bond indebtedness for the water system by authorizing the issuance of water revenue bonds pursuant to ORS 288.805 to 288.945, as amended, for the financing of water system capital improvements. Such debt may be secured by a pledge of water system revenues, appropriate rate covenants, and mortgaging of water system assets. [Tigard may not mortgage] water system assets „ ..~^a-tet-- [without f irst receiving the written consent of the Cities' and District's governing bodies.] D. 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 - 11 (12/23/93 - FINAL) 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 4-- rms 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. E. The District may use office building for meetings of of the Board's correspondence. other governmental entities for agrees to compensate Tigard a building. the former Tigard Water District the District Board and for receipt To the extent that Tigard charges use of the building, the District reasonable amount for use of the F. Tigard agrees to assist the District in preparation of budgets, organization and noticing of meetings and other administrative duties at the request of the District. The District agrees to compensate Tigard a reasonable amount for such assistance. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 12 (12/23/93 - FINAL) 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 reT- lations. 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 GroTith Boundary it 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. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 13 (12/23/93 - FINAL) 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 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 INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 14 (12/23/93 - FINAL) Attest: By: tipra-a jUprdevDjp(]2/23/93 - f,,Qj INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 15 (12/23/93 - FINAL) r d \Li/r12 INTERGOVERNMENTAL AGREEMENT V `tea 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, Kina Citv and Durham (colle-.t.ively 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 4 TIGARD/DURHAM - 1 (12/23/93 - FINAL) 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 A- ='I-- in "l ann i nn anc-l 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. 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 . 3. 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 B. Intergovernmental Water Board Terms. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 2 (12/23/93 - FINAL) (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 he re-annoi rated to succeedin^7 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 z 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<-t- -ud-i-ng>[, excluding] 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. (4) to review and make recommendations to the Budget Committee and Council on all budget requests for r INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 3 (12/23/93 - FINAL) operation and maintenance. i (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 anel juricdiutl ans 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. 4. Division of Original District Assets. A. Pursuant to ORS 222.540(4), the District agrees that the division of assets after withdrawal from the original District by the cities shall be consistent with the following concepts: (1) Assets include real, personal and intangible property. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 4 (12/23/93 - FINAL) (2) Assets will be divided into two groups: a. System Assets: Assets necessary for the operation of Tigard's water supply system throughout the original District, not including those "other assets" of Tigard. Personal and intangible property are system assets. Water mains, service installations, structures, facilities, improvements or other property necessary for operation of the City of Tigard's water supply system throughout the original District are system assets. b. Other Assets: Assets not necessary for the operation of the City of Tigard's water supply system throughout the original District. Other assets shall t-he n-~-vpcy-4-.. of 44%e jurisii cti nn in which the asset is located. Water mains, service installations, structures, facilities, improvements or other property not necessary for the operation of the City of Tigard's water supply system throughout the original District are other assets. B. All system assets and other assets shall be pledged by the Cities and the District to Tigard. All system assets and other assets shall be managed by Tigard and shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. C. Should one of the Cities or the District terminate its water service agreement with Tigard, the Cities' and the District's proportionate interest in a system asset shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District The Cities' and the District's proportionate interest in a system asset capital improvement shall be based upon the capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. D. Upon termination of this Agreement, other assets shall INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 5 (12/23/93 - FINAL) become the property of the jurisdiction in which the asset is located. 5. Asset Ownershi Water Rates Revenues. A. Tigard's Utilization of Assets. (1) The Parties agree that all system assets in which the Parties have an undetermined proportionate interest and all other assets received 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 Ou a--ship 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. (2) 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. (3) 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. (4) 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) INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 6 (12/23/93 - FINAL) 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 may be waived in writing by the governing body of Durham. (5) 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. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 7 (12/23/93 - FINAL) C. Moneys/Revenues. (1) Moneys and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) 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) Moneys deposited in a reserve fund for revenue bonds of ti-,; .,yst am are no a. a system asset cin' are riot L. L. =I- zu subject to the system asset distribution formula in Section 4 of this Agreement. (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 opigjarel* [they] should collect the system development charges imposed by the District until such time as [the Cities impose their] 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 INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 8 (12/23/93 - FINAL) 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 District's Capital Improvement Plan dated June, 1993, will guide Tigard's spending on capital projects until a capital improvement program is adopted pursuant to subsection (b). (2) The capital improvement program shall establish the location of a capital improvement whethpir w; t;,; r m; mA-W-A V. City r%..r.L•.... L .i... 1 ii+.+ay ...~.,1 , Duzlsam or ..he Dis ~.t ic., and shall dis t - -Jul h whether a capital improvement qualifies as a system asset or other asset. (3) Capital improvements made subsequent to entering into this Agreement that are determined 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 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 formula in Section 4.D. of this Agreement. (4) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of all 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. (5) 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 INTERGOVERNMENTAL AGREEMENT ) TIGILRDJDURI M - 9 %f 12,23/ Q3 - - WTM i and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. 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. A governing body may not unreasonably withhold consent to a contract if the contract is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of :-king tn'ether to provide all of the residents and property in the original 'District with a clear., economi cal water sunnly. if a proposed long-term water supply contract 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 contract has been unreasonably withheld. 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. [Tigard, at the District's request, will appropriate and deliver an amount not to exceed $40,000 from Tigard's initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995. Tigard will reimburse the District from water system revenues the cost of the District's Division of Assets study undertaken to fulfill the District's obligations pursuant to ORS 222.540.] G. 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- INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 10 (12/23/93 - FINAL) water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund. H. 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. I. No part of this Agreement shall be interpreted as a waiver of either Partv's statutory rigbtts 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. Tigard is authorized to perform the function and activity of incurring water revenue bond indebtedness for the water system by authorizing the issuance of water revenue bonds pursuant to ORS 288.805 to 288.945, as amended, for the financing of water system capital improvements. Such debt may be secured by a pledge of water system revenues, appropriate rate covenants, and mortgaging of water system assets. [Tigard may not mortgage] water system assets <shall require the eensent ef-= he elt}es---' the --Beet [without first receiving the written consent of the Cities' and District's governing bodies.] D. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by Durham in the 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 INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 11 (12/23/93 - FINAL) 1. 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 se vices requireClfog 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. 'If 4 8. Rules and Regulations. 8 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. INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 12 (12/23/93 - FINAL) 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. 30. ElC101oyee D8iacriits /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 INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 13 (12/23/93 - FINAL) may be simultaneously executed in several counterparts, each of t which shall be an original and all of which shall one and the same instrument. constitute but 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of Durham and Tigard. 16. Rffectjy Date. This Agreement shall be effective January 1, 1994. Attest: CITY OF TIGARD, OREGON By: F Attest: Hgatd~J~m.iga¢ ~f{'` 112/23/93 - Ema91 CITY OF DURHAM, OREGON By: INTERGOVERNMENTAL AGREEMENT TIGARD/DURHAM - 14 (12/23/93 - FINAL) Q-i0, ~/~n~ INTERGOVERNMENTAL AGREEMENT ' -P, . Gf - k-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 (12/23/93 - FINAL) 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 rnl ca ii n planning -.Af :+pcrcitiiay a u~ia8ts Vic: water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest duality grater 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. 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 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 . 3. 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 B. Intergovernmental Water Board Terms. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 2 (12/23/93 - FINAL) (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*1- excluding] 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. (4) to review and make recommendations to the Budget Committee and Council on all budget requests for INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 3 (12/23/93 - FINAL) 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. 4. Division of Original District Assets. A. Pursuant to ORS 222.540(4), the District agrees that the division of assets after withdrawal from the original District by the Cities shall be consistent with the following concepts: (1) Assets include real, personal and intangible property. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 4 (12/23/93 - FINAL) (2) Assets will be divided into two groups: a. System Assets: Assets necessary for the operation of Tigard's water supply system throughout the original District, not including those "other assets" of Tigard. Personal and intangible property are system assets. Water mains, service installations, structures, facilities, improvements or other property necessary for operation of the City of Tigard's water supply system throughout the original District are system assets. b. Other Assets: Assets not necessary for the operation of the City of Tigard's water supply system t beC,eymim 4-lie, hroughout the original District. Other assets shall r---r=~ ~Y oL Laic j uYisdiction in which the asset is located. Water mains, service installations, structures, facilities, improvements or other property not necessary for the operation of the City of Tigard's water supply system throughout the original District are other assets. B. All system assets and other assets shall be pledged by the Cities and the District to Tigard. All system assets and other assets shall be managed by Tigard and shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. C. Should one of the Cities or the District terminate its water service agreement with Tigard, the Cities' and the District's proportionate interest in a system asset shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A + B + C)/3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market value in original District C = Jurisdiction's Percentage of Current Meters in original District The Cities' and the District's proportionate interest in a system asset capital improvement shall be based upon the capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. D. Upon termination of this Agreement, other assets shall INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 5 (12/23/93 - FINAL) become the property of the jurisdiction in which the asset is located. 5. Asset ownership/Water Rates/Revenues. A. Tigard's Utilization of Assets. (1) The Parties agree that all system assets in which the Parties have an undetermined proportionate interest and all other assets received 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, 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. (2) 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. (3) Tigard shall keep the assets free of all levies, liens NZ. 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. (4) 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) T INTER'SOVERNMENTAL AGREEMENT TIGARD/KING CITY - 6 (12/23/93 - FINAL) 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 uic?t any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of King City. (5) 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 f 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 :I INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 7 (12/23/93 - FINAL) customers. C. Moneys/Revenues. (1) Moneys and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) 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) Moneys deposited in a reserve fund for revenue bonds of the water system are not a system asset and are not subject to the system asset distribution formula in Section 4 of this Agreement. (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 <T!qJard> [they] should collect the system development charges imposed by the District until such time as [the Cities impose their] 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 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 8 (12/23/93 - FINAL) 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 District's Capital Improvement Plan dated June, 1993, will guide Tigard's spending on capital projects until a capital improvement program is adopted pursuant to subsection (b). Al (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 a system asset or other asset. (3) Capital improvements made subsequent to entering into this Agreement that are determined 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 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 formula in Section 4.D. of this Agreement. (4) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of all 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. (5) The Parties acknowledge that the water system currently serving the original District is an integrated system. INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 9 (12/23/93 - FINAL) 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. 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. A governing body may not unreasonably withhold consent to a contract if the contract 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 long-term water supply contract 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 contract has been unreasonably withheld. 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. [Tigard, at the District's request, will appropriate and deliver an Aft' amount not to exceed $40,000 from Tigard's initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995. Tigard will reimburse the District from water system revenues the cost of the District's Division of Assets study undertaken to fulfill the District's obligations pursuant to ORS 222.540.] G. 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 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 10 (12/23/93 - FINAL) possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be f ended from resources other than the water fund. H. 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. I. 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. Tigard is authorized to perform the function and activity of incurring water revenue bond indebtedness for the water system by authorizing the issuance of water revenue bonds pursuant to ORS 288.805 to 288.945, as amended, for the financing of water system capital improvements. Such debt may be secured by a pledge of water system revenues, appropriate rate covenants, and mortgaging of water system assets. <Any mortgaging [Tigard may not mortgage] water system assets Eshall require the eensen-t-e€-the elties and the Dlst lei [without first receiving the written consent of the Cities' and District's governing bodies.] D. 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 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 11 (12/23/93 - FINAL) 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 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 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 12 (12/23/93 - FINAL) f- distrir-...ion system shall be done only with prior written approval l of Kind 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 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 INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 13 (12/23/93 - FINAL) 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: s Attest: tigara\4kaaPyiga(~2/4/93}+ [dngci1y-pK12123/93 -final)] CITY OF KING CITY, OREGON By: INTERGOVERNMENTAL AGREEMENT TIGARD/KING CITY - 14 (12/23/93 - FINAL) AGENDA ITEM # For Agenda of December 28, 1993 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE PREPARED BY: Wayne DEPT HEAD OK's CITY ADMIN OK ISSUE BEFORE THE COUNCIL Shall the City Council approve a supplemental budget for the inclusion of Water activities in 1993/94. s STAFF RECOMMENDATION Staff recommends approval of the supplemental budget. INFORMATION SUMMARY Local budget law allows the governing body to adopt a supplemental budget for the creation of a new fund and to increase appropriations by more than 10% for any fund. Because the City will be assuming the operation of the Water system on January 1, 1994, it is necessary to budget for resources and expenditures for those activities for the remainder of the fiscal year. The attached supplemental budget resolution creates the appropriate Water funds to account for water activities and establishes revenues and appropriations for water activities for the balance of 1993/94. A notice and budget summary was published in the Oregonian on December 13, 1993 and a second notice was published on December 17, 1993. If 10 or more interested taxpayers request it in writing, the supplemental budget must be referred to the budget committee. If no such requests are made, the council may approve the supplemental budget. OTHER ALTERNATIVES CONSIDERED * Approve supplemental budget as submitted. * Amend then approve. FISCAL NOTES This Supplemental budget as submitted creates four Water funds with total resources of $5,158,500 and appropriations of $5,158,500.