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04/11/2007 - Packet Completeness Review ' for Boards, Commissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee 40n'l // � i3OU7 Date of Meeting To the best of my knowledge this is the complete meeting packet. I was not the meeting organizer nor did I attend the meeting; I am simply the employee preparing the paper record for archiving.This record came from Greer Gaston's office in the Public Works Building. Kristie Peerman Print Name Signature -31ZD ��; Date Intergovernmental Water Board Meeting Serving Tigard, King City, Durham and the Unincorporated Area AGENDA Wednesday, April 11, 2007 Tigard Public Library 5:30 p.m. 2nd Floor Conference Room 13500 SW Hall Blvd. Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to take roll call. 2. Approval of Minutes —February 14, 2007 Motion from the Board to approve the minutes. 3. Public Comments Call for any comments from the public. 4. Update on Water Supply Options - Dennis Koellermeier(5 minutes) 5. Consider a Resolution Regarding the Tualatin Basin Water Supply Project (Hagg Lake Dam Raise) Title Transfer- Dennis Koellermeier(10 minutes) Motion from the Board to approve the resolution. 6. Consider a Resolution to Recommend that a Portion of the Canterbury Property be Declared as Surplus - Dennis Koellermeier(10 minutes) 7. Building/Asset Discussion Continued from February 14, 2007 Responses to Questions from Attorney Ramis - Dennis Koellermeier(20 minutes) 8. Informational Items - Dennis Koellermeier 9. Non-Agenda Items Call for non-agenda items from Board. 10. Next Meeting - May 10, 2007, 5:30 p.m. Tigard Public Library, 2"d Floor Conference Room, 13500 SW Hall Blvd., Tigard, Oregon 11. Adjournment Motion for adjournment. A light dinner will be provided. Executive Session: The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. Sign-in Sheet Intergovernmental Water Board Meeting Date: I - / / -Dl Name Do you wish If yes, please give your address please print to speak to the Board? John Q. Public Yes 13125 SW Hall Blvd. Tigard OR 97223 0 0 fzl u c) sw � 3 � I Intergovernmental Water Board (IWB) Meeting Minutes April 11 , 2007 Tigard Water Building 8777 SW Burnham Street Tigard, Oregon Members Present: Gretchen Buehner Representing the City of Tigard (arrived 5:32 p.m.) Patrick Carroll Representing the City of Durham George Rhine Representing the Tigard Water District Bill Scheiderich Member at Large Dick Winn Representing the City of King City Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Water Quality/Supply Supervisor John Goodrich IWB Recorder Greer Gaston Note:Agenda items are recorded in the minutes in the order they were considered. This order varies from the agenda, thus the discrepancy in numbering. 1. Call to Order, Roll Call and Introductions Commissioner Scheiderich called the meeting to order at 5:29 p.m. 3. Public Comments Julie Russell, 12662 SW Terraview, expressed concerns about declaring the Canterbury property surplus and transferring ownership of the water building. She questioned whether the Tigard Water District (TWD) had decided or voted on the matter. She also expressed concern over the lack of public involvement associated with these transactions. Note from Subsequent IWB Meeting: With regard to the disposition of the Canterbury property, Commissioner Rhine clarified the Tigard Water District had not taken a vote, but had engaged in a lengthy discussion of the issue. The IWB approved the addition of this notation to these minutes at its May 9, 2007, meeting. Intergovernmental Water Board Minutes April 11,2007 1 Commissioner Rhine responded, with regard to the water building, the TWD had agreed to pursue the "tenants in common" proposal and to use this as a model for other property issues. Ken Henschel, 14530 SW 144th Avenue, expressed confusion over the IWB considering a resolution on the Canterbury property when the TWD had not voted on the matter. The Commissioners and audience members discussed procedural issues, and what action the TWD had taken or might take regarding declaring a portion of the Canterbury property surplus. Mr. Koellermeier clarified disposition of the property was an IWB action and whether the TWD Board had voted was immaterial. Commissioner Buehner explained when the IWB was created by intergovernmental agreement (IGA) in the early 1990's, each of the IWB members were to be assigned a share of the former TWD assets. This assignment of assets never occurred. The IWB's actions related to the disposition of property are in accordance with the IGA and are akin to housekeeping measures. With the exception of entering into a long-term water contract, IWB Commissioners can vote on an issue, whether or not that issue had been discussed with the entity they represent. Mr. Henschel questioned implementing housekeeping measures thirteen years after the original IGA and requested a more public process. 2. Approval of Minutes — February 14, 2007 Commissioner Buehner motioned to approve the February 14, 2007, minutes; Commissioner Carroll seconded the motion. The motion was approved by unanimous vote. 5. Consider a Resolution Regarding the Tualatin Basin Water Supply Project (Hagg Lake Dam Raise) Title Transfer Mr. Koellermeier explained this was a resolution of support to advocate for the title transfer of property related to the Tualatin Basin Water Supply Project. The proposal is to transfer the property from the federal government to a local agency. Local ownership is expected to expedite the project and reduce costs by eliminating federal bureaucracy. A title transfer would not commit the IWB to any action. Mr. Koellermeier and Tigard City Manager Prosser, along with other delegates, will be going to Washington, D.C. to lobby for the title transfer. Intergovernmental Water Board Minutes April 11,2007 2 IWB RESOLUTION NO. 07-01 -A RESOLUTION OF THE INTERGOVERNMENTAL WATER BOARD TO INVESTIGATE POTENTIAL TRANSFER OF TITLE OF ALL LANDS, FACILITIES AND OTHER ASSETS OF THE UNITED STATES BUREAU OF RECLAMATION TUALATIN PROJECT TO LOCAL OWNERSHIP Commissioner Carroll motioned to adopt the resolution regarding the Tualatin Basin Water Supply Project (Hagg Lake Dam Raise) Title Transfer; Commissioner Buehner seconded the motion. IWB Resolution No. 07-01 was approved by unanimous vote. 6. Consider a Resolution to Recommend that a Portion of the Canterbury Property be Declared as Surplus Mr. Koellermeier noted a revised version of the resolution had been prepared based on edits from Commissioner Scheiderich. The revised resolution and a map, labeled Exhibit 1, were distributed to the IWB and audience members. Commissioner Carroll remarked the resolution reflected exactly what the IWB had discussed. The IWB talked about the section of proposed surplus property leased by the John Tigard House. Via the appraisal process, the value of this leased property would be established. The appraised value would reflect the fact this area is not useable as long as the John Tigard House is situated there. The IWB discussed the easement in the southeast corner of the proposed surplus property. This easement could be used for a future aquifer storage and recovery (ASR) site and needs to be located as far away from the existing Canterbury ASR well as possible. The IWB discussed placing another easement across the property to link the easement in the southeast corner to the Canterbury water facility. Because this easement might lower the property value and an alternative connection could be accomplished by way of Murdock Street and an alley running along the west side of the property, the consensus of the Board was not to pursue a second easement. IWB RESOLUTION NO. 07-02 - A RESOLUTION OF THE INTERGOVERNMENTAL WATER BOARD (IWB) RECOMMENDING TO THE TIGARD CITY COUNCIL THAT A PORTION OF THE CANTERBURY PROPERTY BE DECLARED SURPLUS AND ADDRESSING OTHER ISSUES RELATED TO THE DISPOSITION OF THE PROPERTY Intergovernmental Water Board Minutes April 11,2007 3 Commissioner Carroll motioned to adopt the resolution recommending to the Tigard City Council that a portion of the Canterbury property be declared surplus and addressing other issues related to the disposition of the property; Commissioner Winn seconded the motion. Commissioner Scheiderich called for public comment and discussion. Julie Russell, 12662 SW Terraview, requested the record be left open until the next meeting to allow for public comment. She added the current public record does not show the TWD has authorized the sale of the property. She suggested three appraised values be obtained on the property. Commissioner Scheiderich advised the IWB's resolution was a recommendation to the Tigard City Council and the disposition of surplus Canterbury property had been under consideration for a long time. He suggested concerns about the TWD proceedings be directed to that Board. With regard to the following statement in the resolution: WHEREAS, the Tigard Water District (TWD), owner of record for the Canterbury property, has authorized the sale of the property, at not less than the appraised value, to the City of Tigard for the purpose of constructing a park; and Ken Henschel, 14530 SW 144t" Avenue, questioned whether the TWD had authorized the sale of the property and whether the property would be sold to the City of Tigard. Commissioner Rhine responded the minutes detailing the TWD's discussion of the sale of the property had not been approved yet. It was noted a "whereas clause" was not legally binding, this part of the resolution generally relays background information. Items detailed in the section numbers of the resolution show what the Board resolves to do and contain the actual substance of the document. Commissioner Scheiderich pointed out that although the City of Tigard has the first right to buy the property at the appraised value, the property could be sold to another party if this sale did not work out. Commissioner Carroll added the 1993 IGA, which established the IWB, deeded this property to the members of the IWB, but the paperwork was never completed. The IGA remains a legally binding contract and the TWD has no authority to stop the sale of the property as each IWB member owns a share of this asset. Regarding Section 6 of the resolution: Any proceeds from the sale of the Property shall be credited to the Water Capital Improvement Project Fund. Intergovernmental Water Board Minutes April 11,2007 4 Mr. Henschel asked why proceeds from the sale of the property would not be divided among IWB members. The Commissioners responded the IWB had decided to place any proceeds from the sale of water assets into the Water Capital Improvement Fund. This fund is managed by Tigard for the benefit of all of the members and will offset the cost of future water system improvements. IWB Resolution No. 07-02 was approved by unanimous vote. 7. Building/Asset Discussion Continued from February 14, 2007 Responses to Questions from Attorney Ramis Attorney Tim Ramis sent a memo to the IWB requesting clarification on the following points related to the disposition of the water building: 1. Is immediate purchase the preferred alternative by the City of Tigard, or is some form of joint ownership preferred until the time comes to dispose of the property? The Board confirmed the following points: ■ The water building should be transferred into the names of each of the entities (Durham, King City, Tigard and the Tigard Water District) based upon their respective joint ownership interest as tenants in common. ■ Mr. Koellermeier reported he has provided Mr. Ramis with an allocation formula. ■ The water building is being deeded, but not sold. 2. In the event that a form of joint ownership is preferred, will the decision to dispose of the property: (1) Rest in the control of a majority of the ownership (based on ownership percentage); (2) Require agreement of all owners; or (3) Be based on some other form of control such as a majority of the entities with an interest? Commissioner Buehner asserted one entity should not be able to block the wishes of the other members. The Board concurred and decided three of the four entities, with the member at large abstaining, would need to reach agreement on the disposition of the property. Mr. Koellermeier said Mr. Ramis should now have all the information he needs and the Board should have a document to review at their next meeting. Intergovernmental Water Board Minutes April 11,2007 5 4. Update on Water Supply Options Mr. Koellermeier provided the following updates: Hagg Lake Dam Raise (Tualatin Basin Water Supply Project) ■ Draft Environmental Impact Study is due in June, followed by a 90-day comment period. ■ Then partners will decide on which option to pursue and who will participate in the project. Lake Oswego Expansion & Water Partnership ■ A joint meeting between the IWB, and Lake Oswego and Tigard City Councils might be scheduled in the near future. The Lake Oswego Council is focusing on water conservation efforts. Willamette River Treatment & Transmission Improvement Project ■ WaterWatch filed an appeal regarding water right permits. This creates a contested case hearing situation, which should be a 90-day process. ■ The Water Resources and Fish and Wildlife Departments are expected to side with the Willamette River Water Coalition (WRWC) since the Coalition is following their recommendations. ■ With the enactment of a new law, the State appears to be granting in- stream rights for fish while circumventing established water rights. ■ The Willamette River has enough flow to accommodate fish, with very little impact on WRWC water rights. Recent indications are the Tualatin Valley Water District (TVWD) may be leaning toward the Joint Water Commission's (JWC's) Hagg Lake Dam Raise project as opposed to the Willamette River Improvement Project. Tigard and the TVWD have equal positions with regard to water access within the JWC partnership, but the TVWD already has the infrastructure to transport the water; Tigard does not. Mr. Goodrich reported the following: ■ Water customers are currently using about 4.4 million gallons per day (mgd). This is comparable to last year's consumption. ■ 206 million gallons (mg) of water are stored in the City's aquifer storage and recovery (ASR) wells. With some operational adjustments, the plan is to inject another 50 mg within the next month. By purchasing and storing additional non-contract water, there is a potential cost savings of $61,000. ■ A test well will be drilled at the ASR 3 site in the next month. The viability of the well will be determined in the next six months. 8. Informational Items In response to an inquiry, Mr. Koellermeier reported construction of the new reservoir will begin in late July or early August. The earth-work needs to be done by fall and should take about a month. Intergovernmental Water Board Minutes April 11,2007 6 Executive Session — Real Property Transactions Commissioner Carroll motioned for the Board to go into executive session; Commissioner Buehner seconded the motion. The motion was approved by unanimous vote. At 6:30 p.m., the Board went into executive session to discuss real property transactions under ORS 192.660(2)(e). The Board came out of executive session at 6:36 p.m. 9. Non-Agenda Items: None 10.Next Meeting — Wednesday, May 9, 2007, 5:30 p.m. Tigard Public Library, 2nd Floor Conference Room, 13500 SW Hall Blvd., Tigard, Oregon 11.Adjournment At 6:36 p.m. Commissioner Carroll motioned to adjourn the meeting; Commissioner Rhine seconded the motion. The motion was approved by unanimous vote. 4�4 Greer A. Gaston, IWB Recorder Date:--- Intergovernmental Water Board Minutes April 11,2007 7 Intergovernmental Water Board (IWB) Meeting Minutes February 14, 2007 Tigard Public Library 2nd Floor Conference Room 13500 SW Hall Blvd. Tigard, OR 97223 Members Present: Gretchen Buehner, Patrick Carroll, George Rhine, Bill Scheiderich (left the meeting at 6:31 p.m.), and Dick Winn Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Water Quality & Supply Supervisor John Goodrich IWB Recorder Greer Gaston Financial Operations Manager Roger Dawes 1. Call to Order, Roll Call and Introductions Commissioner Scheiderich called the meeting to order at 5:32 p.m. 2. Public Comments: None 3. Receive and File Minutes from the November 14, 2006, Joint Meeting with Lake Oswego and Tigard City Councils Commissioner Carroll motioned to receive and file the November 14, 2006, minutes; Commissioner Rhine seconded the motion. The motion was approved by unanimous vote. 4. Approval of Minutes —January 10, 2007 Commissioner Buehner motioned to approve the January 10, 2007, minutes; Commissioner Carroll seconded the motion. The motion was approved by unanimous vote. 5. Royal Mobile Villa Credit for Leak Request Mr. Dawes provided information on the leak. Staff calculated the credit at $3,980.08. The IWB is required to approve credits exceeding $500. Commissioner Carroll motioned to approve the adjustment as submitted; Commissioner Winn seconded the motion. The motion was approved by unanimous vote. 6. Water Building/Asset Discussion - Continued from the January 10, 2007 Meeting Mr. Koellermeier reported the City of Tigard's (COT's) interest in acquiring the water building had not changed. He distributed two flowcharts depicting options for Tigard's ownership of the water building and the surplus property at the Canterbury site. Intergovernmental Water Board Minutes February 14,2007 1 Commissioner Scheiderich said there were two issues before the IWB: ■ What is the preferred disposition of the water building? ■ If disposing of the building, what should be done with the proceeds? Possible suggestions included a cash payout to IWB members, a rate rebate, or deposit the funds in a capital improvement reserve. The Commissioners res onded as follows: Commissioner Carroll The Durham City Council voted unanimously to retain City of Durham ownership of the water building and enter into an equitable, long-term lease agreement with the COT. Money generated from rent should be placed in the water capital fund. Commissioner Winn Commissioner Winn would honor the 1993 City of King City Intergovernmental Agreement that established the IWB and transfer ownership to the City of Tigard. Commissioner Rhine The TWD had not discussed the disposition of the water Tigard Water District building, but the surplus Canterbury property had been (TWD) discussed. The sentiment was proceeds resulting from the sale of a water asset need to be reinvested in water capital improvement projects. Commissioner Buehner The Tigard City Council is ready to act with regard to City of Tigard ownership and is also supportive of putting funds into a long-term capital fund. The COT wants an equitable solution. The Board briefly discussed the improvements the COT is planning for the water building. Commissioner Scheiderich proposed the following options for the Board's consideration: ■ Lease Allowing for Improvement Credit The COT and the IWB could draft a lease in which the City would get depreciated credit for the water building improvements should the IWB partnership dissolve and the lease be terminated prematurely. ■ Title Transfer to IWB Members Commissioner Scheiderich recognized the City of Tigard did not want to invest $600,000 in a building it does not own. He proposed the City become the property's owner of record. The TWD would retain a proportionate share in the building, while deeding the remaining shares to the Cities of Tigard, King City, and Durham. The City of Tigard, as the largest shareholder, would have majority ownership in the building. This arrangement is known as a tenancy in common and could be terminated by any of the tenants (IWB members) removing themselves from the tenancy. This would force a sale of that member's shares in the building. Typically, the other tenants would buy out these shares. The method to allocate shares would need to be formulated. Commissioner Scheiderich gave the example of the COT putting $600,000 of improvements into the building, but also owning a 60 percent share in the deed record. The City would be improving its own building and this would not be a concern for the other members. Commissioner Rhine said this arrangement was similar to other joint ownership arrangements the IWB had entered into. Commissioner Winn commented this option was reasonable. Intergovernmental Water Board Minutes February 14,2007 2 Commissioner Scheiderich said such an arrangement would protect the ownership interests of each IWB member. Commissioner Buehner advised if the building were to be sold, all the members would have to agree to the sale. Commissioner Scheiderich added a separate right of first refusal agreement could be created. In the event one tenant should decide to back out of the tenancy, this agreement would give the remaining tenants first option to buy the departing tenant's shares. Commissioner Carroll countered if the larger shareholders decided to sell the building, it would be difficult for the other members to raise enough money to buy the available shares. Commissioner Buehner advised the general rule of joint ownership is none of the partners can sell unless all the partners are in agreement. The smallest partner could prevent a sale, despite the preference of all the other members. A side agreement could be created stating any tenant who wants out of the tenancy could either require a sale of the property or have their interest bought out. If the COT chose this route, the other IWB members might not be able to come up with the money to buy the City's shares. This scenario would probably necessitate the sale of the building. Commissioner Carroll said he could support an agreement in which the water building could not be transferred out of the water district without the approval of all four IWB members. Commissioner Buehner responded this was the general rule. Commissioner Carroll said he would want these terms included in an agreement. Commissioner Scheiderich requested a legal opinion: If the TWD were to deed the water building title to the IWB members, based on some type of proportional share formula, could any of the owners in common (IWB members) prevent sale of the asset outright? Could any one of the tenants in common force a sale? Commissioner Carroll expressed support for a right of first refusal agreement. He emphasized the important thing would be to create a document guaranteeing the water building stays under the control of the water district representatives until all the members find a compelling reason to liquidate the asset. Mr. Koellermeier noted even after improvements, the water building will only house about half of the Public Works Department staff. At some point in the future, it is likely the department will need to move to a larger facility and the water building would no longer be used for water purposes. Commissioner Buehner said a side agreement could be created to transfer ownership to the new facility based on the same ratios established for the water building. Commissioner Carroll said if there came a time when the water building is no longer of any value, he would support selling the property with the proceeds going to the water fund. Rather than have ownership in the new facility, he proposed the water-related functions could be assessed an equitable fee based on their proportional use of the new building. Commissioner Winn added he wasn't concerned about the disposition of the water building as long as it doesn't affect the operation of the water system. The Board discussed the Public Works Department future facility. Intergovernmental Water Board Minutes February 14,2007 3 Commissioner Rhine remarked if the water building had no public service value and was also not needed for the operation of the water system, then the building would be surplus and should be sold. Other IWB members agreed. Commissioner Carroll added the proceeds should go to the water system. Mr. Koellermeier agreed, provided the water fund had paid for the initial improvements. Commissioner Rhine said it was reasonable for improvements to be credited or backed out of the sale. Commissioner Carroll asserted not all improvements should qualify for a credit. He continued by saying a major capital expense, like replacement of the HVAC system, should qualify, while more minor improvements, like erecting walls for offices, should not. Commissioner Scheiderich suggested two options should the COT vacate the water building before the improvements were fully depreciated: ■ The City could be given a higher share of the proceeds from the sale of the building. • The City could accept the loss. Commissioner Winn remarked the building was also appreciating in value. Commissioner Buehner cautioned if the IWB created a tenancy in common, it needed to be aware one member of the IWB would have the power to halt whatever the other members wished to do. She suggested when the time comes to move to a new facility, all the members should agree to be reasonable and prudent and to sign off on the disposition of the water building. The IWB agreed to move forward with an agreement. Mr. Koellermeier commented this arrangement worked for the COT because money wouldn't have to be moved from one fund to another. Commissioner Scheiderich requested Mr. Koellermeier return with some options on how shares in the water building might be calculated. Commissioner Carroll asked how the $600,000 in improvements will affect the agreement. Commissioner Buehner noted there would need to be a specific allocation of what goes into the HVAC system versus more traditional tenant improvements. Mr. Koellermeier said the cost of the HVAC system is approximately $350,000. Mr. Koellermeier explained between 58 and 60 percent of the water building complex is being used for water system operations. Commissioner Scheiderich proposed 60 percent of the improvements should then be charged to the water fund. As tenants in common, each of the IWB members would share in the water building's appreciation. Commissioner Carroll asked how the remaining 40 percent of non-water functions would be charged to the COT. Commissioner Scheiderich countered that since the City owns more than a 40 percent share in the building, this was a moot point as far as the IWB is concerned. Commissioner Carroll asserted any non-water related functions should have to compensate the water board for the use of the building. Commissioner Winn commented this compensation should go to the water capital improvement fund. The other Commissioners concurred. Mr. Koellermeier said he would draw up the points the IWB had discussed. Intergovernmental Water Board Minutes February 14,2007 4 With regard to the water building, Commissioner Carroll commented the IWB's arrangement with the COT could be a "paper exercise" where no actual money changed hands. Commissioner Buehner noted fair rental value needed to be determined. Commissioner Carroll added that 40 percent of the water building improvements should be considered lease tenant improvements because this portion of the building would be allocated for non-water functions. He continued by saying these users should pay a monthly rent based on square footage. The IWB agreed operational costs of the building would be allocated based on the use of the building. Mr. Koellermeier clarified operational costs of the building are water department costs, but they have a rent revenue. Commissioner Buehner requested Attorney Clark Balfour be hired to work on the IWB's behalf. Mr. Koellermeier outlined the process for the COT to acquire the surplus property at Canterbury as follows: ■ Determine the boundary of the surplus property ■ Declare the property as surplus ■ IWB approves the sale of the surplus property ■ The COT buys the surplus property for park purposes ■ Proceeds from the sale are credited to the water capital fund The TWD Board of Commissioners has agreed to sell the property for the appraised value. Commissioner Rhine commented the conditions of the sale of surplus property were spelled out in the 1993 agreement that created the IWB. Mr. Koellermeier advised the TWD had leased one corner of the Canterbury property to the John Tigard House. With regard to the sale of the surplus property, he proposed two options: ■ Exclude the property leased by the John Tigard House from the surplus property. In this case, the TWD would continue to own and lease this section of the property. ■ Include the John Tigard House in the surplus park property with the understanding the COT will continue the lease. In this case, Mr. Koellermeier asserted the City should not have to pay for that section of the property. The IWB expressed a preference for the latter option. Commissioner Scheiderich noted this arrangement should be subject to a lease strictly for the purpose of preserving the John Tigard House. He suggested a conservation easement. Commissioner Rhine said the COT Parks Division could administer the property. The IWB discussed a property appraisal. In order to buy the property, Mr. Koellermeier advised the COT's purchasing rules would necessitate an appraisal. He advised that although the City wanted to purchase the property for a park, the Tigard City Council would have to approve the purchase before the sale was finalized. Commissioner Scheiderich requested the partition be designed in such a way that the property would be attractive to other buyers besides Tigard. Intergovernmental Water Board Minutes February 14,2007 5 Commissioner Scheiderich requested Mr. Koellermeier provide some options regarding the apportionment of the proceeds regarding the water building. Revenue generated might be considered in the formula. 7. Election of a Chair and Vice-Chair Commissioner Carroll motioned to reelect Commissioner Scheiderich to the position of Chairman; Commissioner Rhine seconded the motion. Commissioner Buehner asked Commissioner Carroll if he would continue to serve as Vice Chairman, Commissioner Carroll said yes. Commissioner Rhine seconded the motion. The motions were approved by unanimous vote. Note: Commissioner Scheiderich left the meeting at 6:31p.m. 8. Informational Items Mr. Koellermeier introduced Mr. Goodrich who provided information on proposed updates to the cross connection program. In order to bring the program into compliance with state regulations, Mr. Goodrich said the Tigard City Council will consider revisions to its municipal code regarding cross connections. The proposed updates are comparable with other local jurisdictions, including the Tualatin Valley Water District. The IWB discussed backflow, different types of backflow prevention devices, and the process for informing the public about the regulations. Commissioner Buehner advocated educating water customers about backflow. 9. Non-Agenda Items: None 10. Next Meeting— Wednesday, March 14, 2007, 5:30 p.m. Tigard Public Library, 2nd Floor Conference Room, 13500 SW Hall Blvd., Tigard, Oregon 11. Adjournment At 6:51 p.m. Commissioner Rhine motioned to adjourn the meeting; Commissioner Buehner seconded the motion. The motion was approved by unanimous vote. Greer A. Gaston, IWB Recorder Date: .�� Intergovernmental Water Board Minutes February 14,2007 6 Agenda Item No.: IWB Meeting Date: Westside Officials Breakfast April 4, 2007 7:30-10:00 a.m. Background& Purpose of Meeting Clean Water Services Chair Tom Brian welcomed the attendees and explained the purpose of the meeting. The meeting would provide elected officials and key staff in Washington County with an update on the Tualatin Basin Water Supply Project, an overview of title transfer and request that each partner's elected body approve a resolution agreeing to study title transfer. Tualatin Basin Water Supply Project Update Project Manager Tom VanderPlaat described the current water supply options and timeline for the Tualatin Basin Water Supply Project. This summer, the US Bureau of Reclamation will publish the Tualatin Basin Water Supply Project Draft Planning Report/Environmental Impact Statement(PR/EIS)that examines two alternatives: Hagg Lake Alternative: A proposed 40-foot raise of Scoggins Dam on Hagg Lake in Western Washington County Multiple Source Option Alternative: This includes up to a 25-foot raise of Scoggins Dam and the expansion of Willamette River Drinking Water Treatment Plant in Wilsonville. The next steps after the release of the Draft PR/EIS include completion of a Final EIS in Spring 2008 followed by Congressional Authorization in 2009 and construction completed by 2015. Current cost estimates for the project are$300 million. Hagg Lake/Scoggins Dam Title Transfer Study Tom VanderPlaat provided an overview of the title transfer process. In 2005, the US Bureau of Reclamation Commissioner John Keyes encouraged the Partners to examine title transfer of the existing Scoggins Dam/Hagg Lake facilities as a way to reduce costs and provide more flexibility in planning for the Water Supply Project. The Water Supply Project partners formed a study group to examine the feasibility of title transfer and recommended further study. Last month, the Water Supply Project Policy Steering Committee(PSC)of local appointed and elected officials unanimously took action to direct project staff to study title transfer and asked other existing Tualatin Project contractors--Tualatin Valley Irrigation District, Lake Oswego Corporation and Washington County—to join the PSC. Mr. VanderPlaat described the steps for title transfer and outlined a schedule which includes an environmental review process and Congressional Authorization by November 2008. One of the key policy issues will be the development of a governance structure to take title to the facility if the partners choose to move in that direction. The first step will be to examine functions,roles, capabilities and capacities of local ownership. Q & A Are there potential revenue sources with local ownership? That will be considered in the study. What type of expertise and staff would be needed for a local entity to operate the facilities? This will also be part of the study. Have we done a risk assessment related to title transfer? USBR does a risk and hazard analysis and there will be a"facility conditions assessment" as part of the study. Next Steps Chair Brian asked if Councils, Commissions and Boards who would be involved in a title transfer would be willing to adopt a resolution in the next month supporting a study of title transfer. A sample resolution was handed out(attached). The Project will be taking a dele-gation of officials and community members to Washington DC May 9-11 to meet with our Congressional Delegation, congressional committee staff, Reclamation, and OMB to support the Project and Title Transfer efforts. The trip would include one elected official and one senior staff member from each of the organizations that would be actively involved in title transfer. Jeanna Cernazanu with Clean Water Services will be contacting staff and elected officials by e-mail to request names, travel plans (if staying longer than the 11`h) and frequent flier numbers for those who plan to attend. Due to the short timeline,responses will be needed by this Friday. INTERGOVERNMENTAL WATER BOARD RESOLUTION NO. 07- of A RESOLUTION OF THE INTERGOVERNMENTAL WATER BOARD TO INVESTIGATE POTENTIAL TRANSFER OF TITLE OF ALL LANDS, FACILITIES AND OTHER ASSETS OF THE UNITED STATES BUREAU OF RECLAMATION TUALAT N PROJECT TO LOCAL OWNERSHIP WHEREAS, the Tualatin Basin Water Supply Project partners including Clean Water Services, the Tualatin Valley Water District and the Cities of Hillsboro, Beaverton, Tigard, Tualatin, and Forest Grove are seeking future water supplies to meet 2050 forecasted demands in cooperation with Tualatin Valley Irrigation District,Washington County and Lake Oswego Corporation; and WHEREAS, Bureau of Reclamation Commissioner John Keys III (retired) suggested the possibility of title transfer to local officials in 2005; and WHEREAS,title transfer would offer several benefits including significant time and cost savings for Hagg Lake expansion (Scoggins Dam raise) which is being proposed for future water supply in the Basin; and WHEREAS, reclamation has developed a framework for title transfers as a policy direction for more efficient and effective management of facilities through local ownership; and WHEREAS,the Water Supply Project Policy Steering Committee,made up of elected and appointed officials from each of the partners in the project, unanimously supported the pursuit of title transfer. NOW,TI EREFORE, BE IT RESOLVED by the Intergovernmental Water Board as follows: SECTION 1: The Intergovernmental Water Board hereby directs and authorizes the investigation of a potential transfer of title of all the lands, facilities, and other assets of the United States Bureau of Reclamation Tualatin Project to local ownership. SECTION 2: Signing this resolution will not bind the Intergovernmental Water Board or any of the other signatories to completing the transaction. SECTION 3: This resolution is effective immediately upon passage. PASSED: This day of 2007. Intergovernmental Water Board RESOLUTION NO.07- v/ Page 1 of 2 Bill Scheiderich,Presi rent Intergovernmental Water Board ATTEST: Greer Gaston, IWB Recorder Intergovernmental Water Board RESOLUTION NO.07- 0/ Page 2 of 2 Revised 4/11/07 INTERGOVERNMENTAL WATER BOARD RESOLUTION NO. 07- O 2— A RESOLUTION OF THE INTERGOVERNMENTAL WATER BOARD (IWB) RECOMMENDING TO THE TIGARD CITY COUNCIL THAT A PORTION OF THE CANTERBURY PROPERTY BE DECLARED SURPLUS AND ADDRESSING OTHER ISSUES RELATED TO THE DISPOSITION OF THE PROPERTY WHEREAS, a portion of the water facility known as the "Canterbury property" is not being used for water operations; and WHEREAS,the IWB has determined that potential future water system expansion/improvements on the unused property can be preserved by retaining an water easement on the southeast corner of the parcel; and WHEREAS, the City of Tigard has expressed an interest in purchasing the unused portion of the property in order to develop a park on the site; and WHEREAS,the Tigard Water District ('TWD),owner of record for the Canterbury property,has authorized the sale of the property,at not less than the appraised value,to the City of Tigard for the purpose of constructing a park; and WHEREAS,the IWB serves an advisory role to the Tigard City Council; and WHEREAS,the IWB has identified several conditions related to the disposition of the unused Canterbury property. NOW,THEREFORE, BE IT RESOLVED by the Intergovernmental Water Board as follows: SECTION 1: The Canterbury property,located at 10310 SW Canterbury Lane, Tigard, Oregon, (2S 111BCO26000), shall be partitioned, generally as depicted on the attached map (Exhibit 1).That portion of the site after partitioning (hereafter, "the Property") that is not retained in fee for water system use shall be offered for sale as provided for in this Resolution. SECTION 2: The IWB recommends to the Tigard City Council that the Property, generally as depicted on the attached map (Exhibit 1), be declared surplus in accordance with City of Tigard surplus property procedures. Intergovernmental Water Board RESOLUTION NO.07- DL Page 1 of 2 I SECTION 3: In any conveyance of the Property to any person the grantor(s) shall reserve not less than a 50-foot by 50-foot easement for future water system use in the southeast corner of the property, generally as depicted on the attached map (Exhibit 1), and a conservation easement for the area now leased to the Tigard Area Historical and Preservation Association,the easement to be limited to the sole use of maintenance of the historical John Tigard House and no other purpose. SECTION 4: The City of Tigard at its initiative and expense may conduct an independent appraisal and title search of the portion of the property that is offered for sale. The property shall be offered for sale at its fair market value as determined by the appraisal or by any commercially reasonable means. SECTION 5: The City of Tigard shall have the right of first refusal on reasonable terms,including a reasonable time limit within which the option must be irrevocably exercised,to purchase the unused portion of the Canterbury property at the appraised price. The appraisal shall reflect the value of the reserved easements as described in this Resolution as offsets to the present market value of the Property. SECTION 6: Any proceeds from the sale of the Property shall be credited to the Water Capital Improvement Project Fund. SECTION 7: The resolution is effective immediately upon passage. PASSED: This day of 2007. Bill Scheiderich,Presid nt 1 Intergovernmental Water Board ATTEST: Greer Gaston, IWB Recorder Intergovernmental Water Board RESOLUTION NO.07-DZ- Page 2 of 2 Canterbury ................... 0 Easement Area Murdock EE OH I r Agenda Item No.: �- IWB Meeting Date: RAMIS CREW CORMGAN, LLP Attorneys At Law MEMORANDUM 1727 NW Hoyt Street Portland,Oregon 97209 (503) 222.4402 Fax: (503) 243-2944 TO: Dennis Koellermeier FROM: Tim Ramis DATE: April 5, 2007 RE: Disposition of Water Building Thank you for providing me with the minutes from the IWB's February 14, 2007 meeting. If you have the opportunity at the next meeting, I would appreciate if the Board could clarify its positions on two issues. Based on that discussion we will prepare the appropriate documentation. My questions are: 1. Is immediate purchase the preferred alternative by the City of Tigard, or is some form of joint ownership preferred until the time comes to dispose of the property? 2. In the event that a form of joint ownership is preferred, will the decision to dispose of the property: (1) Rest in the control of a majority of the ownership (based on ownership percentage); (2) Require agreement of all owners; or (3) Be based on some other form of control such as a majority of the entities with an interest? Based upon the Board's preferences, we will work with staff to present the appropriate plan for the Board's consideration. City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 i Phone. 503-639-4171 FAX TRANSMITTAL Date April 6, 2007 Number of pages including cover sheet 3 To: [OThe City of King City (Fax No. 503-639-3771) The City of Durham (Fax No. 503-598-8595) From: Greer Gaston Co: City of Tigard Fax#: 503.684.8840 Ph#: 503.718.2592 SUBJECT: Intergovernmental Water Board Meeting Notice and Agenda MESSAGE: Please post the attached notice and agenda for the upcoming meeting of the Intergovernmental Water Board. Thank you. 1AENGIFAX.DOT Intergovernmental Water Board Serving Tigard, King City, Durham and Unincorporated Area MEETING NOTICE Wednesday, April 11 , 2007 5 :30 p.m. Tigard Public Library 2nd Floor Conference Room 13 500 SW Hall Blvd. Tigard, Oregon Intergovernmental Water Board Meeting Serving Tigard, King City, Durham and the Unincorporated Area Wednesday, April 11, 2007 Tigard Public Library 5:30 p.m. 2nd Floor Conference Room 13500 SW Hall Blvd. Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to take roll call. 2. Approval of Minutes—February 14, 2007 Motion from the Board to approve the minutes. 3. Public Comments Call for any comments from the public. 4. Update on Water Supply Options - Dennis Koellermeier(5 minutes) 5. Consider a Resolution Regarding the Tualatin Basin Water Supply Project(Hagg Lake Dam Raise) Title Transfer-Dennis Koellermeier(10 minutes) Motion from the Board to approve the resolution. 6. Consider a Resolution to Recommend that a Portion of the Canterbury Property be Declared as Surplus -Dennis Koellermeier(10 minutes) 7. Building/Asset Discussion Continued from February 14, 2007 Responses to Questions from Attorney Ramis -Dennis Koellermeier(20 minutes) 8. Informational Items—Dennis Koellermeier 9. Non-Agenda Items Call for non-agenda items from Board. 10. Next Meeting-May 10, 2007, 5:30 p.m. Tigard Public Library, 2"d Floor Conference Room, 13500 SW Hall Blvd., Tigard, Oregon 11. Adjournment Motion for adjournment. A light dinner will be provided. Executive Session: The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 4/6/2007 1 : 49PM Last Transaction Date Time Type Identification Duration Pages Result 04/06 01 : 48p Fax Sent 5036393771 1 : 10 3 OK hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 4/6/2007 1 : 51PM Last Transaction Date Time Type Identification Duration Pages Result 04/06 01 : 50p Fax Sent 5035988595 1 : 10 3 OK