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09/08/2010 - Packet Completeness Review for Boards, Commissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee -Q 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 carne from Greer Gaston's office in the Public Works Building. Kristie Peerman Print Name Signature VIYX-3 111 t Intergovernmental Water Board Agenda SERVING TIGARD, KING CITY,DURHAM AND TIGARD WATER DISTRICT MEETING DATE: Wednesday, September 8, 2010, 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to conduct roll call. 2. Approval of Minutes —July 14, 2010 Action: Motion to approve the July 14, 2010 minutes. 3. Public Comments Call for comments from the public. 4. Credit for Leak Adjustment —John Goodrich Linda Masters 5. Tualatin Valley Water District Boundary Clarification —John Goodrich 6. Water Supply Update -John Goodrich 7. Consultant Presentation on Final Recommendations Water Rate Study and Water SDC Findings -John Goodrich 8. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee activities. c. Update from Mr. Goodrich regarding'Tigard Municipal Code (TMC) 12 9. Intergovernmental Agreement — Dennis Koellermeier 10. Non-Agenda Items Call for non-agenda items from the Board. 11. Future Agenda Items Schedule Date Item To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. 12. Next Meeting: INTERGOVERNMENTAL WATER BOARD AGENDA— September 8, 2010 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-718-2591 www.tigard-or.gov Page 1 of2 ■October 13, 2010 at 5:30 p.m. Public Works Auditorium, 8777 SW Burnham Street,Tigard, Oregon 13. Adjournment Action: Motion for adjournment. Executive Session The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. INTERGOVERNMENTAL WATER BOARD AGENDA— September 8, 2010 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-718-2591 1 www.tigard-or.gov I Page 2 of2 Intergovernmental Water Board (IWB) Meeting Minutes September 8, 2010 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Ken Henschel Alternate Representing the Tigard Water District Dick Winn Representing the City of King City Mike Stone Member At-Large Members Absent: Keith Jehnke Representing the City of Durham Staff Present: Dennis Koellermeier Public Works Director John"Goodrich Utility Division Manager Kathy Mollusky Executive Assistant Visitors: Joe Healey Red Oak Consulting Paul Matthews Red Oak Consulting 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:35 p.m. 2. Approval of Minutes —July 14, 2010 Commissioner Buehner motioned to approve the July 14, 2010 minutes. Commissioner Stone seconded the motion. The minutes were approved by majority vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. 3. Public Comments: None 4. Credit for Leak Adjustment Mr. Goodrich asked for the IWB's approval for a credit for leak adjustment submitted by Linda Masters for a leak that occurred at their home. Commissioner Buehner motioned to approve the Linda Masters credit as recommended by staff. Commissioner Henschel seconded. The credit for the water leak was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. Intergovernmental Water Board Minutes September 8, 2010 1 5. Tualatin Valley Water District Boundary Clarification Mr. Goodrich reported that last year the City went through the property withdrawal procedure for this area; however, one property was inadvertently omitted. The state requires the process be completed from the beginning with all of the effected properties included. This is a housekeeping issue; there are no service boundary changes. Tigard has been serving this area since the 1970s. 6. Water Supply Update • Mr. Goodrich reported having an average month of about 10 million gallons per day (mgd) of water usage. This is 0.67 mgd less than the historical low. Water use has been less than expected because of a very late, wet spring. It is up 0.3 mgd from last year. The complete supply from ASR 1 was utilized. There is about a 9-day supply left in ASR 1 and a 70-day supply in ASR 2. • The 10 million gallon reservoir is offline. Construction is continuing on the pump station. Excavating and shoring are being completed. JS Fowler is the contractor. 7. Consultant Presentation on Final Recommendations on the Water Rate Study and Water SDC Findings Mr. Paul Matthews and Mr. Joe Healy, Red Oak Consulting, gave a PowerPoint presentation, which is on record in the IWB file. • Mr. Matthews clarified the Tigard Water Service Area (TWSA) conservation program has been in existence at least 10 years. Due to the success of this program, there is not a lot of future conservation figured in. • Mr. Healy clarified a typical residential has a meter size of 5/8 x 3/4. • There is only one 12" meter in the TWSA, which may be in use for fire flow. The City would suggest an adjustment for them. • If larger meter users do not pay for their use, the charge would shift to other customers. Some customers would true up meter size and may not need as big a meter as they have. • In October 2010, there will be a 7% increase. On January 1, 2011, costs will increase 31%. • Typical residential user fees per month depend on the time of year. Average winter consumption is six units, which would be in Tier 1. Low minimum user will have a fixed rate charge of$31 plus the cost of water at thresholds based on meter size. • The large meter customers will see a higher percentage increase. They currently are not paying their fair share. Billing is currently based on how much it costs to bill a customer. It costs the City the same to bill a small meter as a large meter customer. That is not the true cost of the water used. A 30% increase equals $8/month or 20 cents/day. The percentage increase seems to be a lot; however the dollar amount is not that much. • If the increase was over-estimated or we realize additional savings, these rates can be adjusted in the future by having either a smaller increase or no increase in the "out years". • The booster charge is used to recover the additional cost of pushing water to the higher elevations. This rate is not increasing. • For low-income customers, there is a third party, not-for-profit group that will allocate a check to the customer to help cover the water bill. • For TWSA purposes, System Development Charges (SDC)for existing sources (ASR, Wells, etc.)were allocated to existing customers. This shifts a big share of the Lake Oswego capacity expense to future growth. Tigard's current SDC charge is $2,366. Wilsonville's is around $7,200. West Linn's is $6,600. Happy Valley's is $6,500. Intergovernmental Water Board Minutes September 8,2010 2 • If SDC's are reduced to one meter size (i.e., 2" meters), someone still has to pay so it will be ratepayers. • Most of our customers have 5/8" by 3/4" meters. If someone needs a 4" connection, it will be a school, hospital, major hotel, some kind of industry. It will not be a standard customer like a restaurant. • An 8" meter ensures customers that water will be available for that development from here forward; it is a buy-in fee, a onetime fee. • Commissioner Buehner explained that developers are not paying what it costs, particularly for transportation. Cities cannot diminish service levels for water like they have for roads. Ratepayers have to pick up the cost. Commissioner Henschel made a motion that IWB recommend to Council to not phase in System Development Charges, but institute immediately. Commissioner Buehner seconded the motion. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. 8. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee Activities • Commissioner Buehner reported receiving a presentation on the new figures for the joint project. The figure they were working with was $200 million and now it is $230 million. • It was determined that almost none of current Lake Oswego plant will be able to be reused, which will reallocate a percentage of the cost. Lake Oswego's share will increase and Tigard's share will decrease. This will not raise our costs very much, if at all. We will stick with $118 million for our purposes here and will adjust rates later if needed. b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee Activities • Commissioner Winn reported this will be talked about next month. c. Update from Mr. Goodrich regarding Tigard Municipal Code (TMC) 12 • Mr. Goodrich is presenting the updated TMC, practices and procedures to Council October 19 during the workshop session and will present the following month for adoption. The updated TMC, practices and procedures should be in place January 1, 2011. 9. Update from Mr. Koellermeier regarding the IWB Intergovernmental Agreement (IGA) • Mr. Koellermeier reported Tigard sent the marked up IWB IGA to the IWB. This will be discussed at the October 13 meeting, including the reasons behind the changes. • Council will discuss at the September 28 workshop. • Commissioner Winn would like IWB to go through, decide and make recommendations before Council gets the final draft. The seventh draft is what Tigard City Council will approve and he doubts much will be changed. • Commissioner Winn recognizes that "66", giving authority to the IWB to be final and binding on Tigard, was put in due to the IWB being in a hurry. This was not what the IWB had agreed to. He believes this agreement is good. He would like the IWB to join together and think about what is best for all the communities. The betterment of the Intergovernmental Water Board Minutes September 8,2010 3 cities depends on a financially and operationally sound water department. He would like the IWB to all show up when it is submitted to Council. 10. Non-Agenda Items None 11. Future Agenda Items • Future agenda items were not discussed. 12. Next Meeting: October 13, 2010 at 5:30 p.m. Public Works Building, 8777 SW Burnham St, Tigard, Oregon 13. Adjournment At 8:00 p.m., Commissioner Buehner motioned to adjourn the meeting; Commissioner Henschel seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. Dick Winn, IWB Chair Kathy Mollusky, IWB R order Date: /y�/'f��to Date: 1 U Intergovernmental Water Board Minutes September 8, 2010 4 Agenda Item No.: o� IWB Meeting Date: q-g- 1 O Intergovernmental Water Board (IWB) Meeting Minutes July 14, 2010 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Ken Henschel Alternate Representing the Tigard Water District Keith Jehnke Representing the City of Durham Dick Winn Representing the City of King City Mike Stone Member At-Large Members Absent: None Staff Present: Dennis Koellermeier Public Works Director John Goodrich Utility Division Manager Kathy Mollusky Executive Assistant Visitors: Joe Healey Red Oak Consulting Paul Matthews Red Oak Consulting Art Cornelius Citizen of Tigard 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:36 p.m. 2. Approval of Minutes — May 12, 2010 Commissioner Buehner motioned to approve the May 12, 2010 minutes. Commissioner Henschel seconded the motion. The minutes were approved by majority vote of the Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone, and Winn voting yes. 3. Public Comments: When Mr. Art Cornelius moved to the City of Tigard (COT), he was told that the water was wonderful. Because of this information, he did not put a whole-house water filter in. He installed filters for his drinking water and had to replace them sooner than expected due to clogging. He called COT and discovered the water is purchased from the City of Portland who does not filter the water. He found out COT is seeking an alternative water source, which will take six years. He wants to put in a whole house filtration system and requests COT reimburse him $125 for the pair of filters that were supposed to last a year. The IWB did not ask COT to reimburse Mr. Cornelius for the filters. Intergovernmental Water Board Minutes July 14,2010 1 i Mr. Koellermeier assured Mr. Cornelius that the Bull Run System is treated chemically so inert material is not harmful and it does not go through a filtration system. The silt is annoying and problematic, but not harmful. This is one of the reasons COT is leaving the Portland Water System. 4. Credit for Leak Adjustment Mr. Goodrich asked for the IWB's approval for a credit for leak adjustment submitted by Greenfield Village Apartments for a leak that occurred in their irrigation system. Commissioner Buehner motioned to approve the Greenfield Village Apartment credit as recommended by staff. Commissioner Stone seconded. The credit for the water leak was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone, and Winn voting yes. 5. Water Master Plan Commissioner Buehner motioned to have the IWB recommend that the Tigard City Council approve the 2010 Water Master Plan. Commissioner Stone seconded. The recommendation for the City Council to approve the 2010 Water Master Plan was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone, and Winn voting yes. 6. Water Supply Update • Mr. Goodrich reported reaching a peak of 10.6 million gallons per day (mgd) during the 100 degree day. Water use has been less than expected because of a very late, wet spring. COT easily met the 10 mgd demand. Tigard is looking at taking the 10 mil reservoir out of service and using the bypass. Mr. Koellermeier stated this will start in mid-August and will be taken out of service by September 1. • The average demand is 6 to 7 mgd. • Previous year's peak days were 12.98 to 13.26 mgd. 7. Water Rate Study and Water SDC Update for the Lake Oswego Tigard Joint Water Supply Project Partnership • Mr. Goodrich reported that this is the next phase of the project tasks to discuss revenue requirements. On June 15 a joint Council and IWB meeting was held that introduced the water financial plan project. • This project is under a tight timeline and COT is working to get the best information to Red Oak Consulting. The numbers may be updated as more information is acquired. • Mr. Paul Matthews and Mr. Joe Healy, Red Oak Consulting, gave a PowerPoint presentation, which is on record in the IWB file. • Mr. Matthews clarified the $118 million baseline amount for Tigard's share of the Lake Oswego Tigard Partnership was selected before the filtration option for the water treatment plant was selected, so these dollar figures will change in September when the treatment option is finalized and engineer estimated costs are completed. • Mr. Healey clarified the revenue requirement target of 1.35 (or 135%) was received from Mr. Pat Clancy, City Financial Planner. COT needs to bring in 135% revenue above operating expenses. COT can use the additional money on other systems, (i.e., CIP), however, they cannot use this money to cover operating expenses. This will not be finalized until COT enters into the agreement. COT is going to have multiple bonds issued. For instance, a 20-year bond may be issued in 2012 and due 2032; a 20-year Intergovernmental Water Board Minutes July 14,2010 2 2015 bond would be due 2035. If you issued all debt needed right now (the full $118M), the rates would increase significantly. • Revenue bonds are tax-free debt, which means the borrowers do not pay taxes. COT is using revenue bonds, which do not require voter approval, however, they can be voter referred if COT so chooses. • The growth assumptions used in this analysis are low, very close to 0%. The first year is around 0.5%, then 1%. • Percentage rate increases will drop off in 2017 due to the Portland water contract ending. • COT traditionally increases water rates in October, but are considering postponing the increase until January 1. COT is checking with the Bond Council to consider increasing rates every six months to try to flatten out the curve. These numbers help COT understand the worst-case scenario. The rates will double by 2014 to pay for the Lake Oswego partnership, and then will just be maintenance of 5.5% traditional assumed inflation. • Mr. Koellermeier stated COT has to adopt the rate study to substantiate a rate increase in October. The IWB and Council have to decide before the document is accepted by other agencies. There is plenty of time to have smaller rate increases, but we want to evaluate their significance and limit increasing customer rates over the next 3 to 5 years. The current water SDC charge is $2,022. The upper zone SDC charge is $2,366. • Mr. Koellermeier explained how SDC revenue is used for paying debt. SDC money is segregated from other money and can only be used on future growth. • Commissioner Jehnke clarified that if someone builds a house in two years, they are only paying on 18 years, indexed for inflation. Most utilities look at every 5 years (COT every 2 years). • The SDC is currently set up to fairly charge any connection in the current Urban Services Area. Treatment and existing pipe capacity have the ability to serve outside of the boundary. • Do we need to structure for growth outside of the TWSA (for instance Areas 63 & 64)? Historically, a supplemental SDC is added for new areas: customers outside of the area pay a booster charge. Providing service outside the service area can be very expensive and sometimes requires re-piping for extra capacity. Right now, it is estimated to cost $8 million to serve. The law requires a capital improvement list that includes a list of projects and the date of the project. The project list can be adjusted. Growth would happen at separate times. The first person to build and the last person will pay the same amount. • Wilsonville invites the Home Builders Association (HBA) and developers to meetings so they know about rate increase. COT had a preliminary meeting. They have two more meetings scheduled, a CIP meeting and mechanics of SDC meeting. • Part of what drives the SDC update schedule is the legal requirement to give 60-day notice (this is the review process period). On September 21 the SDC is scheduled to be completed and ready for review. • In November, Council will consider adopting the water rate plan. • Using base rate compared to a tiered rate structure is a policy decision. 8. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities • Last meeting was in June, next meeting will be September 8, 2010, at 3:00 in Tigard. Intergovernmental Water Board Minutes July 14,2010 3 • Andrew Singelakis was appointed new Director of Land Use and Transportation for Washington County. b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee Activities • Commissioner Winn reported they have been in hiatus. c. Updated from Commissioner Henschel on the Citizen Sounding Board activities • Commissioner Henschel reported they had its final meeting. They reviewed the different treatment technologies and citizens agreed with the recommendations. 9. Non-Agenda Items The proposed draft IWB agreement, as written, is legally sufficient and could be considered for adoption at this point. The partners could start marking up changes to the proposed agreement with their issues addressed or Tigard can prepare their changes to the draft proposed IWB Intergovernmental Agreement (IGA) as the managing partner, and then allow the IWB partners to review and suggest further proposed changes as needed. The IWB chair stated that King City would wait until Tigard has reviewed and made their changes for the other members to consider. Mr. Koellermeier stated that the proposed changes from Tigard should be available in a month. The August meeting is not required and will be cancelled as long as the IWB IGA redline is distributed to IWB Board members as soon as it is available. 10. Future Agenda Items Future agenda items were not discussed. 11. Next Meeting: • September 8, 2010 at 5:30 p.m. Public Works Building, 8777 SW Burnham St, Tigard, Oregon 12. Adjournment At 7:45 p.m., Commissioner Winn motioned to adjourn the meeting; Commissioner Stone seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone and Winn voting yes. Dick Winn, IWB Chair Kathy Mollusky, IWB Recorder Date: Date: Intergovernmental Water Board Minutes July 14,2010 4 Sign-in Sheet Intergovernmental Water Board Meeting Date: September 8, 2010 This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Name Do you wish If yes, please give your Phone number / Email (please print) to speak to address the Board? John Q. Public Yes 13125 SW Hall Blvd. (503) 555-5555 Tigard, OR 97233 johngpublic@yahoo.com Agenda Item No.: L4 IWB Meeting Date: 1A CREDIT FOR LEAK ADJUSTMENT The City of Tigard has a policy of issuing partial credits for leaks that are repaired in a timely V manner. The city expects leaks to be repaired within ten days of discovery. Credits are based on your average usage for the same period in previous years. This average is deducted from the total consumption used during the time of the leak. The excess usage is charged at the wholesale rate of water,with the difference between wholesale and resale cost deducted TIGARD from the utility account as the Credit for Leak f // Please describe the specific circumstances of your request: 0 /d b?08 21TW .Eh2W Zyl sk -1-VLjUU4dJ Al PaO N Uti hl) -yL& 500 y SL.0 !q!Sf .u41_ Date leak found: Iq aw 10 Date leak repaired: I Account#• cp!a Location of Service: 15-000 '5W /W S� Toll-I'd ogl: ! /�� 7 Customer Name:,t n d a_ Mailing Address: I T Street address City State Zip Phone DOCUMENTATION YOU MUST SUBMIT COPIES OF PLUMBER'S BILLS AND/OR RECEIPTS FOR PARTS, REQUIRED TO FIX THE LEAK. �} FOR OFFICE USE ONLY 5 $2.68 $2.66 $3.13 $2.60 $3.34 - $1.22 = $ RES MUR COM� IIqD MR� s( Markup Previous years usage: 33 #periods used x $ I �1(' Average Leak Period Leak ccf Markup Credit Adjustment Total Credit:$ ��s'f Date Issued: 1,9 LelaIssued By _ Agenda Item No.: S IWB Meeting Date: City of Tigard 13125 SW Hall Blvd. Tigard,Oregon 97223 Posted August 11,2010 Public Meeting Notice Date: Tuesday, September 14 at 7:30 p.m. Address: Town Hall, 13125 SW Hall Blvd,Tigard ORS 222.524 Withdrawal of Territory from the Tualatin Valley Water District Subsequent to Annexation to the City of Tigard A Public Meeting will be held at 7:30 p.m. on Tuesday, September 14 in the Town Hall Conference Room. This public meeting will allow citizens to provide testimony to City Council regarding this proposed corrective administrative action to legally recognize the present existing utility service boundary and withdraw territory from the Tualatin Valley Water District. The meeting will determine whether it is in the City's best interest to complete this "housekeeping" action by ordinance to withdraw territory from Tualatin Valley Water District at the very southern tip of the Metzger area (south of Highway 217,west of I-5, north of Booties Ferry Road and east of the railroad right of way as noted in Exhibits A,B-1 and B-2). Background: The proposed area for withdrawal is currently within the city limits of Tigard and is served municipal water by the City of Tigard. It receives no municipal water service from Tualatin Valley Water District. All water services including meter reading,billing and collection is provided by the City of Tigard. This action is proposed to correct the legal description of the area and clarify the existing water service utility boundary between Tigard and Tualatin Valley Water District. There is no impact to residents or customers through this action. For more information, contact Dennis Koellermeier,Public Works Director, 503-718-2596 or dennis(ii)tiga� rd or.gov. Post: Tigard City Hall Tigard Permit Center Tigard Public Works Building Tigard Public Library s 4 r 7 41 Mill t e ' � I yy IIr � R � . e 4+• Jif „� ,y e � � k': i _ � ' ,,.:. ` ¢ '�`' �� •� � .f 1 �r . � � i _ .�� ;�� ' , _ i �� 1't .� � � `,�� : .T ��.�. � ,� `;.. . f �'� [ -. "1;',. � ,. �.� .. _ ii ,.�,, i;r:. . - . t:. t' 111111 '-� �un� �� . tT vl 11` . - . - - �i�l �§ � , ,, illlll .' _. I �� : �� .t •4 L r4 ` �I � 2'-�'p°�•ntr.fi:. j9� t^'1':yam~ ■ ANNEXATION DESCRIPTION A tract of land situated in.the Section 1,Township 2 South Range 1 West Willamette Meridian described as follows: Commencing at the Northeast Comer of Lot 1 Rolling Hills, thence N 87° 22' 15"W, along the north line of said lot 1 a distance of 22.43 feet to the southerly line of Hwy 217 and the true point of beginning; thence along said southerly right-of-way the following 6 courses; thence N 021 38' 39" E a distance of 38.95 feet; thence N 55°26' 49"W a distance of 113.70 feet; thence N 31° 09' 54" W a distance of 439.81 feet; thence N 54° 36' 15"W a distance of 220.59 feet; thence N 71° 52' 40"W a distance of 52.52 feet; thence N 72° 03' 28"W a distance of 113.88 feet; thence N 88° 37' 36"W, leaving said southerly right-of-way, a distance of 188.93 feet to a curve to the right; thence along said curve to the right with a radius of 220.00 feet, a central angle of 9°26' 16" (a chord which bears N 8311 54' 28"W,36.20 feet) and a length of 36.24 feet; thence N 02° 15' 23"W a distance of 7.02 feet; thence N 70° 14' 03"W a distance of 339.67 feet; thence S 02°48 45"W a distance of 736.05 feet to the north line of Rolling Hills; thence S 87" 50' 15"E, along said north line a distance of 329.79 feet; thence N 02°28' 15"W, leaving said north line a distance of 340.26 feet; thence S 87°43' 39"E a distance of 335.16 feet; thence S 02°49' 00"W a distance of 342.21 feet to the north line of Rolling Hills; thence S 87°22' 15" E, along the north line of Rolling Hills,a distance of 576.18 feet; to the true point of beginning Containing 11.94 Acres Also including: A tract of land situated in the Section 1 and Section 12,Township 2 South Range 1 West Willamette Meridian described as follows: Beginning at the southeast corner of Lot 36 Rolling Hills No. 2; thence N 40°24' 47"W,along the southerly line of Rolling Hills No. 2, a distance of 244.56 feet to the northwest comer of Lot I Tech Center Business Park; thence S 02°39' 40"W, along the west line of said Lot 1, a distance of 502.22 feet to the easterly right-of-way of Southern Pacific Railroad; thence along said easterly right-of-way the following 7 courses; thence S 40° 15' 49"E a distance of 222.13 feet; thence S40° 32' 32"E a distance of 726.18 feet to a point of curve of a curve to the right; thence along said curve to the right with a radius of 2736.3 3,a central angle of 24°23' 42" (a. chord which bears S 280 20' 41"E, 1156.28 feet) and a length of 1165.06; thence S 16°08' 50" E a distance of 3236.70 feet; thence S 17°21'40" E, along an offset spiral, a distance of 321.75 to a point of curve to spiral; thence along said curve to the right with a radius of 2496.43 a central angel of 4° 04' 26"(a chord which bears S 21' 50' 26" E, 177.46 feet) and a length of 177.50 feet to the south west corner of Lot 4 Pacific Corporate Center; thence N 51°49' 41"E, I along the south line of Pacific Corporate Center, a distance of 408.32 feet; thence N 60° 21' 32" E, along the south line of Pacific Corporate Center,a distance of 20.23 feet; thence N 51°49' 41"E, along the south line of Pacific Corporate Center, a distance of 174.73 feet; thence N 25° 27' 49"E,along the east line of Pacific Corporate Center also being on the west line of Interstate 5, a distance of 218.70 feet; thence N 19143' 34"E, along the east line of Pacific Corporate Center also being on the west line of Interstate 5, a distance of 313.98 feet; thence N 191 30' 11" E, along the east line of Pacific Corporate Center also being on the west line of Interstate 5,a distance of 486.48 feet; thence N 05° 19' 16"E, along the east line of Pacific Corporate Center also being on the west line of Interstate 5, distance of 556.57 feet; thence N 01* 13' 48"E, along,west line of Interstate 5 a distance of 1015.48 feet; thence N 011 13' 48"E, along, west line of Interstate 5 a distance of 491.73 feet; thence N 18° 52' 52"W, along, west line of Interstate 5 a distance of 101.79 feet; thence N 010 13'48"E, along,west line of Interstate 5 a distance of 819.80 feet; thence N 04° 18' 06"W, along, west line of Interstate 5 a distance of 566.41 feet; thence N 21° 17' 48"W, along, west line of Interstate 5 a distance of 40.20 feet; thence N 20°28' 46"W, along, west line of Interstate 5 a distance of 62.45 feet; thence N 21' 36' 01"W, along, west line of Interstate 5 a distance of 67.63 feet; thence N 291 01' 31"W, along, west line of Interstate 5 a distance of 68.37 feet; thence N 37° 19' 19"W, along, west line of Interstate 5 a distance of 63.53 feet; thence S 891 34' 11"W,along, west line of Interstate 5 a distance of 129.43 feet; thence N 01° 13' 48"E, along,west line of Interstate 5 a distance of 13.15 feet; thence N 27° 15' 59"W, along,west line of Interstate 5 a distance of 261.29 feet; thence N 09°07' 42"E, along,west line of Interstate 5 a distance of 185.81 feet; thence N 24° 57' 29"W, along,west line of Interstate 5 a distance of 175.05 feet; thence N 43° 34' 48"W, along, west line of Interstate 5 a distance of 3 03.3 8 feet; thence N 31° 17' 57"W, along, west line of Interstate 5 a distance of 423.23 feet; thence N 34° 59' 47"W, along, west line of Interstate 5 a distance of 361.89 feet; thence S 021108' 01"W,along, west line of Interstate 5 a distance of 77.42 feet; thence N 33° 54' 40"W, along,west line of Interstate 5 a distance of 226.41 feet; thence N 36°40' 41"W, along, west line of Interstate 5 a distance of 84.78 feet; thence N 461 53' 17"W, along, south line of highway 217, a distance of 106.92 feet; thence N 581 41' 57"W, along, south line of highway 217, a distance of 56.84 feet; thence S 85° 56' 57"W, along, south line of highway 217, a distance of 15.63 feet; thence S 02" 33' 09" W, along, south line of highway 217, a distance of 7.62 feet; thence N 87° 39' 05"W, along, south line of highway 217, a distance of 22.00 feet; thence S 84°48' 31"W, along, south line of highway 217, a distance of 190.00 feet; thence S 72° 38' 31"W, along, south line of highway 217, a distance of 77.16 feet; thence S 40° 31' 21"W a distance of 139.29 feet to the southeast corner of lot 30 Rolling Hills; thence S 870 43' 15"W, along,south line Rolling Hills, a distance of 629.72 feet; thence S 021 03' 55"W, along, east line Rolling Hills, a distance of 311.04 feet; thence S 871 24' 15"E a distance of 625.22 feet to the west right-of-way of SW 72°d Ave; thence S 020 30' 37"W, along said west right-of-way, a distance of 20 feet; thence S 870 24' 00"E, along said west right-of-way, a distance of 8.97 feet; thence S 040 15' 37"W, along said west right-of-way, a distance of 138.06 feet; thence S 87°24' 00"W , along said west right-of- way, a distance of 4.75 feet; thence S 02° 30' 37"W, along said west right-of-way, a distance of 530.50 feet; thence N 870 21' 15"W a distance of 280.08 feet; thence S 02°32' 45"W a distance of 88.00 feet to the south line of Rolling Hills No.2; thence N 87° 21' 15"W a distance of 819.96 feet to the point of beginning. Containing 254.41 Acres 1 � }.�. 1 �:'„ � � �`w-to , m'+. t. � a'� ' ' •Y tai o� i#;_�?��T n _ v Tl a+ 3 - r �}y A g r E r y i t OF p x�gPy -# a7,o'er•� Y_ ! h �Y ,.•.r•;,. f � .. Via. low ..r�� t. �, +• `r•* yet" w _ _ & -vG' '. f _ r .. r REBDAK CONSULTING ��; [ - ^•k f. {+'., ['. • . ♦OIVISIOM Of MALCOLM 1-MIL f Review Tigard's capital funding requirements and Lake Oswego partnership cost estimate Topics for Today Meeting challenges with conservation-based {tiered) rates Things to consider when adopting conservatioW - PathwaysILasting Solutions • • DI YISION Of NALCOLN/IRNI[ Key Assumptions Lake Oswego / Tigard Partnership Cost Estimates • $ 118 million total cost for Tigard • Funded with combination of rate adjustments, increased SDC revenues, and debt financing REWAK 3 Pathways to Lasting Solutions Capital Funding Activities $so $�o $60 � $50 � $40 $30 $20 _ $i0 $0 2011 2012 2013 2014 2015 201h �_-Funded CIP ■Bond Issues • ' :; REL�DAK ' • •' CONSULTING • . Pathways to Lasting Solutions ♦ DIVIlIOM Of M�LCOLM•IRMI[ Annual Capital Expenditures (inflated)Ye ar Annual CIP FY2011 $%911,141 FY2012 165242,522 FY2013 2358659900 FY2014 43,447,985 FY2015 3850725,352 FY2016 29614,171 FY2017 41252,554 FY2018 699351,477 FY2019 8621,835 FY2020 909,012 Totals $147,113,949 B,D. 5 CONSULTING Pathways to Lasting Solutions Meetinges Current Revenue Stability • Increase fixed charges • Revise equivalent meter schedule Equity • Revise equivalent meter schedule • Implement tiered rates Con servation • Implement tiered rates f�EMAK 6CONSULTING Pathways to Lasting Solutions Challenges to Revenue Stability: Water Utility Cost Structure Fixed . are high • Fixed costs are typically 70-95% of total annual costs • E.g., labor, debt service, etc. Variable costs are typically low • E.g., power, chemicals, etc. • Exception for those utilities that purchase water from wholesale providers (Contract terms determine the portion of wholesale costs that are fixed) UBDAK 7 IS - CONSULTING Pathways to Lasting Solutions Challenges to Revenue Stability Tigard's Water Utility Cost Structure Revenue Composition 100% 90% -- 80 70% 60% __ - 50% 40% 30% 20% 10% - - - 0% - - Cost Current Revenue •Fixed Variable 8 � Pathways to Lasting Solutions Challenges to Revenue Stability and Equity: Existing Monthly Fixed Charges Meter Base Booster sue Charge Charge 5/8"X 3/4" $3.43 $3.03 1" 3.43 3.03 1 1/211 3.43 3.03 2" 3.43 3.03 3" 3.43 3.03 4" 3.43 3.03 6" 3.43 3.03 8" 3.43 3.03 10" 3.43 3.03 12" 3.43 3.03 MA 9CONSULTING Pathways to Lasting Solutions Users with Large Meters Use More Water Average Consumption Meter Size Day per Meter Factor 5/8 x 3/4 Inch 0.29 1.0 1 Inch 0.77 2.7 1.5 Inch 2.32 8.0 2 Inch 3.76 13.0 3 Inch 6.63 22.9 4 Inch 13.61 47.0 6 Inch 50.0 81nch 80.0 * Note: Consumption data for meters larger than 4-inches was statistically insufficient. AWWA hydraulic capacity equivalent were used for meters larger than 4-inches. �� 10CONSULTING Pathways to Lasting Solutions Challenges to Equity and Conservation: Sending an Accurate Price Signal Price Pi — — — — — — — — — Typical Demand 1 Increase in Curve Price 1 - Po I 1 I Decrease in I Demand Q, Qo Quantity [D. 11CONSULTING Pathways to Lasting Solutions Why UsePricing ?Conservation Goals of Conservation Pricing • Ensure financial stab ilit Ygiven weather considerations • Ensure equity among customer classes (residential, commercial, etc.) • Reduce peak-season and peak-day use (conservation) • Provide a low-cost, entry-level block • Keep it simple B,D. 12 CONSULTING Pathways to Lasting Solutions How Does Our Rate Design Model Work? •Calculates total revenue under existing rates •- •Provides basis for • comparison C •- ' ••• •• •Estimates conservation • savings •Calculates total revenue • •_ _ • under proposed rates •Adjusts proposed rates to make revenue equal under existing and proposed rate structures • ED. 13 CONSULTING Pathways to Lasting Solutions Uniform Rates by Class Rates differ by Vkgal customer class not quantity Same price for all consumption for a class of customer Uniform Rate Quantity PE[A)AK CONSULTING Pathways to Lasting Solutions InliningBI korTiers oc s Price of water increases as $/kgal quantity purchased increases Tier thresholds should make sense for customers and utility Common approach Inclining Block Rate Quantity to enhancing conservation rates REHDAK CONSULTING Pathways to Lasting Solutions Results of Staff Recommendation from Rate Design Workshop Tigard, Oregon September 21, 2010 REBDAK CONSULTING Pathways to Lasting Solutions A DIVISION OF MALCOLM PINKIE Meeting the Challenge: Revenue Stability Increase Fixed Revenue Revenue Composition 100% 90% 80% 70% 60% - 50% 40% 30% 20% 10% 0% Cost Current Revenue Proposed Revenue ■I I'�Fixed ■�Tier ,l1 I' I�Variable • 3D. 17 CONSULTING Pathways to Lasting Solutions Meeting the Challenge: Revenue Stability & Equity Alternative Equivalent Meter Ratios Meter Size Cun-et Manual* Actual Use 5/8" X 3/4" 1.00 1.00 1.00 1" 1.00 1.40 2.67 11/211 1.00 1.80 8.00 2" 1.00 2.90 12.99 3" 1.00 11.00 22.90 4" 1.00 14.00 46.97 6" 1.00 21.00 50.00 8" 1.00 29.00 80.00 10" 1.00 36.25 156.30 12" 1.00 43.50 225.07 * American Water Works Association Manual of Water Supply Practices: Principles of Water Rates,Fees,and Charges R-EIDAK 18 CONSULTING Pathways to Lasting Solutions Meeting the Challenge: Revenue Stability & Equity Recommended Monthly Fixed Charges Number Meter Base Customers Booster Customers Size Charge by Size Charge by Size 5/8" x 3/4" $15.78 159635 $4.08 19804 1" 35.40 1,604 10.87 475 11/2" 93.49 375 32.60 26 2" 151.68 320 52.93 22 3" 298.56 24 93.33 4 4" 567.12 11 191.41 6" 63 5.8 8 5 203.75 8" 993.12 5 326.00 10" 1,832.55 0 636.93 12" 29592.94 1 917.17 WA 19 Pathways to Lasting Solutions Meeting Challenges: Equity and Conservation Recommended Volume Rates ($/CCF) Comparison by Class '16,11 Tier I Tier 2 Tier 3 Rate Rate Rate Residential $3.82 $2.04 $2.98 $3.41 Multi-Family 3.80 1 .70 2.48 2.84 Conmercial 4.46 2.32 3.38 3.87 Industrial 3.70 3.23 3.23 3.23 Irrigation 4.75 4.59 4.59 4.59 * CCF = 100 cubic feet = 748 gallons �� . 20 B Pathways to Lasting Solutions Meeting the Challenge: Equity Thresholds by Meter Size 5/8"x 3/4" 6 15 Over 15 1" 16 40 Over 40 1 1/211 48 120 Over 120 2" 78 195 Over 195 3" 137 344 Over 344 4" 282 705 Over 705 6" 300 750 Over 750 8" 480 19200 Over 11,200 10" 938 2,345 Over 2,345 12" 1,350 3,376 Over 3,376 * CCF = 100 cubic feet= 748 gallons REBDAK 21 CONSULTING Pathways to Lasting Solutions Typical Bill Comparisons Tigard, Oregon September 21, 2010 RLD. CONSULTING Pathways to Lasting Solutions Monthly Bill Comparison: Residential 5/8" x 3/4" Meter $80 $71.89 $70 $57.03 $60 I i � $50 $39.94 $30.23 $30 $25.98 f $20 $16.83 $10 $o - - - Current Recommended Current Recommended Current Recommended Low Use-5CCF Medium Use-10 CCF High Use-20 CCF Fixed Charges Volume Charges 23 Pathways to Lasting Solutions Monthly Bill Comparison: Multi-Family 1" Meter $160 - $150.52 $136.43 - $140 $120 $97.32 $100 ----•-� $83.23 ! i $80 E� I $60 $52.40 ; $40 $30.03 i I $20 $0 Current Recommended Current Recommended Current Recommended LowUse-10CCF Medium Use-30 CCF High Use-50 CCF ■ Fixed Charges Volume Charges REODAK 24 CONSULTING Pathways to Lasting SolutionsA DIVISION OF MALCOLM PINKIE Monthly Bill Comparison: Commercial 1 1/2" Meter ___ $400 1$380.61 i $350 $316.43 $300 - : $250 '$211.61 $200 $159.93 ` I$139.89 $150 $100 $66.03 $50 $0 ----1 Current Recommended Current Recommended Current Recommended Low Use-20CCF Medium Use-50 CCF High Use-100 CCF e Fixed Charges Volume Charges 25 Pathways to Lasting Solutions Bill Comparison: Residential 5/8" x 3/4" Meter Monthly Consumption: 10 CCF $60 $55.19 $50 $39.94 m $40 , $35.59 s $7302-31 $30.20 C $30 $26.54 - 0 - � $20 f $10 $0 Tigard Tigard Lake Beaverton Wilsonville Portland Current Recommended Oswego ■ Fixed Charge Volume Charges 26DAK RE13 Pathways to Lasting Solutions Rate Design Summary MeetingChallengesF_____ I Ti ard's g Revenue Stability • Improve revenue stability for the water utility with cost-of-service- based fixed charges Equity • Enhance equity among customer classes by using cost-of-service- based rates • Enhance equity within customer classes by using tiered rates to recover some peak-related costs Conservation • Promote conservation with the use of increasing tier pricing KEMAK 27 CONSULTING Pathways to Lasting Solutions Staff Recommendations to Meet Challenges • Implement monthly billing • Provide economic crisis assistance • Implement tiered water rates • Increase fixed charges • Increase water revenue to service future debt financing UMAK 28 CONSULTING Pathways to Lasting Solutions Rate Design Q & A Tigard, Oregon September 21, 2010 BBD. CONSULTING Pathways to Lasting Solutions UpdateS stem Develo ment Char e Y p g Final Findings Tigard, Oregon September 21, 2010 RED. CONSULTING Pathways to Lasting Solutions SDCs APartof Utility capital charges1, One-�7, L new LCtOM7� µms: Designed to processr Open I offset 11, ensures rowth- fairness Oregon provides : REMAK i 31 CONSULTING Pathways to Lasting Solutions Without Sufficient SDC Revenue, Ratepayers Must Pay the Difference a�es MOO=❑ SDC's ooaa000co ,Growth Capital Costs Reservoirs Pump Stations Major Pipelines utility Cap1ta unding REMAK 32CONSULTING Pathways to Lasting Solutions Common SDC Components Reimbursement Fee F L • Reimburses a utility's existing customers for past infrastructure investments that provided extra capacity for growth Improvement Fee • Recovers capital costs of growth-related infrastructure projects ,� 33 CONSULTING Pathways to Lasting Solutions SDC Goals and O-bjectives • Develop practical SDCs s • Maintain financial health for the utility • Comply with Oregon law • Ensure SDCs cover the cost of growth REMAK 34 CONSULTING Pathways to Lasing Solutions The Cost of Growth Inside TWSA Boundary Water SDC by Component (% x %-Inch Meter) Proposed Proposed Reimbursement System Component Fee Fee Total S 1 Groundwater/ ASR $0 $0 $0 PWB Supply 0 0 0 LO-Tigard 0 3,033 31033 Bonita Pump Station 0 0 0 Water Storage 380 490 870 Pump Stations 37 0 37 550-530 Intertie 0 15 15 Transmission & Distribution 2,401 0 2,401 Administrative Facilities 57 0 57 Field Ops. 61 0 61 Totals $2,936 $3,538 $6,474 f�EIDAK 35 CONSULTING Pathways to Lasting Solutions Recommendation : Maximum Allowable SDCs by Meter Size compared to Existing 5/8 x 3/4 Inch $6,474 $2,041 1 Inch 171269 51103 1.5 Inch 51,777 7,348 2 Inch 84,076 16,328 3 Inch 1481,263 301,615 4 Inch 3041071 511025 6 Inch 32301 1021050 8 Inch 517,890 1631280 10 Inch 110115828 293,496 12 Inch 1,457,032 775,907 REMAK 36 CONSULTING Pathways to Lasting Solutions SDC Comparison: Residential 5/8" x 3/4" Meter $7,000 $6,474 $5,803 $6,000 - -- $5,293 - $ $5,000 4,736 $4,000 $3,000 $2,478 $2,041 $2,000 - - - $1,710 $1,000 - -- $0 Tigard Tigard Lake West Beaverton Wilsonville Portland Current Recommended Oswego Linn RELDAK 37 CONSULTING Pathways to Lasting Solutions SDC Policy Questions : • Do we charge the maximum allowable SDC ? • Do we implement a 3-step , 2-year phase-in schedule? RELOAK 38 Pathways to Lasting Solutio A--�. 0 ' It a r- a sA i . ia r y rt ,4 ..�]r .t - R--• 14. '� fes. ��. y - �_ - y-r n N¢. �E �—t N - _ ^� • �Imo* ° f° q}� ., !'rte �f R�� - .�i,•� '1 : :• REQDAK • CONSULTING '' �' ` • �' . • . • D—SIOR Of MALCOLM PIRMI[ Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Reservoir#3 SW-7RES Fence,Chain Link w13 Strand Barb Wire& Gate approximately 1,200' $7,930 Jul-84 40 $5,155 $2,776 Additional Construction,Add 12'to 67'Dia. x 32' $77,190 Jul-72 40 $73,331 $3,860 Original Construction,500,000 Gallon,67' Dia.x 20'High $31,352 Jul-60 40 $31,352 $0 Reservoir#3,Concrete Tank,2.5 Million Gallons,124'Dia.x 29'Deep $588,687 Jul-83 40 $397,364 $191,323 Total $705,159 $507,201 $197,958 Reservoir Jia SE-22RES Fence,Chain Link w13 Strand Barb Wire& Vehicle Gate,approx.1,350 L.F. $4,658 Jul-69 40 $4,658 s0 Reservoir,Concrete,1.0 Million Gallons $51,137 Jul-60 40 $51,137 $0 Reservoir,Concrete,1.0 Million Gallons $82,885 Jul-69 40 $82,885 $0 Total $138,680 $138,680 $0 10 MG Reservoir SW-14RE5 Fence,Chain Link,1,300 L.F.x 6'w/Gate $3,962 Jul-78 40 $3,170 $792 Reservoir,Concrete Tank,10 Million Gallons $1,131,099 Jul-78 40 $904,879 $226,220 Total $1,135,061 $908,049 $227,012 Reservoir#4 Fence,unain Link,bLKJ L.F.x bBart)wire& SW-16RES Gate $1,872 Jul-68 40 $1,872 $0 Reservoir#4,Concrete Tank,1 Million Gallons $65,171 Jul-66 40 $65,171 $0 Tota 1 $67,043 $67,043 $0 Hi Tor 1.0 MG Reservoir SW-4RES Fence,Chain Link,600 L.F.x 6'High $1,872 Jul-70 40 $1,872 $0 Million Gallons $113,159 Jul-71 40 $110,330 $2,829 Total $115,031 $112,202 $2,829 Page 1 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Hi Tor 0.2 MG Reservoir SW-6RES Fence,Chain Link,600'x 5'High $1,998 Jul-71 40 $1,948 $50 Reservoir,Concrete Tank,200,000 Gallons $36,300 Jul-63 40 $36,300 $0 Total $38,298 $38,248 $50 132nd pump Stat SW-25 PST Fence,Chain Link,BO L.F.x 6'High $640 Jul-87 10 $640 $0 Pump Station,132nd St Package,350 GPM $18,792 Jul-87 10 $18,792 $0 Total $19,432 $19,432 $0 Saylor Reservoir(1.0 MG) NE-52RES Fence,Chain Link,800 L.F.x 6'Barb Wire& Gate $3,176 Jul-70 40 $3,176 $0 Reservoir,Steel Tank,1 Million Gallons $46,100 Jul-63 40 $46,100 $0 Total $49,276 $49,276 $0 Hi Tor Pump Station SW-56PST Utility Vault,Concrete,9'x 14' $5,112 Apr-85 10 $5,112 $0 Pump Station Package,3 Pump,25 HP $52,902 Jul-71 10 $52,902 $0 Generator,Stand By $18,792 May-85 10 $18,792 $0 Utility Vault,Precast Concrete,15 x 9 x 8' CH,Lights&Ventilation $5,940 Dec-87 10 $5,940 $0 Total $82,746 $82,746 $0 Well#4 SW-15WEL Deep Well&Pump,Depth 925' $8,694 Nov-65 40 $8,694 $0 Pump House is a Class C Structure Containing 144 S.F. $1,148 Jul-68 40 $1,148 $0 Total $9,842 $9,842 $0 Well#1 SE-51WEL Deep Well Pump#1,Well Depth 612' $6,989 Jul-47 40 $6,989 $0 Pump House do 143 S.F.(Deep Well#1) $668 Jul-47 40 $668 $0 Motor Replace Well Pump#1 $4,673 Aug-82 40 $3,271 $1,402 Total $12,330 $10,928 $1,402 Page 2 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Well#2 SW-20WEL Deep Well Pump#2,Depth 453', w/Accessories $3,398 Feb-69 40 $3,398 $0 Pump House,(Deep Well#2)is a Class D Structure,Containing 144 S.F. $592 Jul-49 40 $592 50 Total $3,990 $3,990 $0 Well#3 SW-8WEL Deep Well Pump#3,Depth 494' $4,450 Jul-60 40 $4,450 50 Pump House(Deep Well#3)is a Class D Structure,96 S.F. $864 Jul-60 40 $864 $0 Total $5,314 $5,314 $0 Hunziker Road Pump Station SE-45PST Hunziker Pump Station Package,1400 GPM $11,250 Jul-69 10 $11,250 50 Pump Station #1 Pump Station#1,8 x8'Package Station SE-50P5T w1 2-50 HP $21,470 Jul-66 10 $21,470 50 Generator,Stand By $23,865 Aug-85 10 $23,865 $0 Total $45,335 $45,335 $0 P.S.at 10 MG Reservoir SW-13PST Pump Station Package,2000 GPM $116,316 Jul-92 10 $116,316 $0 Hi Tor 1.1 MG Reservoir SW-5RES Reservoir,Site#2,Concrete Tank,1.1 Million Gallons $616,036 Jul-91 40 $292,617 $323,419 Baylor Reservoir(1.125 MG) NE-S3RES Reservoir,Steel Tank,1.125 Million Gallons $63,504 Jul-69 40 $63,504 $0 Reservoir#2 SW-55RES Addition to Tank,Added 8'of Height $9,347 Jun-70 40 59,347 SO Original Construction,42'6"Dia.x 20'High $16,896 Jul-54 40 $16,896 $0 Total $26,243 $26,243 $0 Page 3 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Station#2 Booster Pump SW-21PST Generator,Stand By,200KW $23,265 Mar-87 10 $23,265 $0 NW-1637, NW-1632, N W 1643, NW-32MET Beaverton Tie-in at 121st and Scholls Ferry $6,541 Jan-79 50 $4,055 $2,486 Eleven Reducing Stations $165,000 Miscellaneous $104,936 Pre 1994-Total Reservoirs,Pump Stations,and Wells Adjusted to 2010 $3,560,628 $2,535,536 $1,025,092 Updated 1995-2010 Projects Price Reservoir $6,162,758 Jun-08 40 $308,138 $5,854,620 Menlor Reservoir $3,698,375 Jun-97 40 $1,201,972 $2,496,403 ASR 1 50 ASR 2 $1,890,000 Apr-05 50 $189,000 $1,701,000 ASR 3 $700,000 Jan-08 50 $28,000 $672,000 Water Telemetry Upgrade $300,000 Jun-09 5300,000 New Pump Station at 10mg Site/Update Tank $5,800,000 Jun-10 10 $0 $5,800,000 Tiedeman PRV 115000 Jun-OS 40 $14,375 $100,625 Eleven Reducing Stations added since 1994 at 20,000.00 each $220,000 1995-Present Total Reservoirs,Pump Stations,and Wells $17,144,648.23 Grand Total $18,169,740.01 Page 4 of 4 Appendix E (Updated 2010) Tigard Water District Supply Lines, Meters, and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations Map Accumulated Location Year Useful Depreciation Plant Value Net of Acc. ID 1994 Description Installed Purchase Cost Life (updated to 2010) Dep. (updated to 2010) 72-A Bonita R/R Crossing Casing 1972 $17,413.0 50 $13,233.9 $4,179.1 72-B 16" Di on Bonita west of Bridge to 1972 $11,165.0 50 $8,485.4 $2,679.6 72-C Bonita R/R Crossing Casing 1972 $17,413.0 50 $13,233.9 $4,179.1 72-D 16" Di on Bonita west of Bridge to Hall Blvd. 1972 $11,165.0 50 $8,485.4 $2,679.6 16" Di on Bonita from 72nd Ave.to west side of 73-A bridge 1973 $48,382.0 50 $35,802.7 $12,579.3 73-B Bonita Pump Station 1973 $67,031.0 10 67,031 $0.0 Pipeline& Meters-Meter Vault to Walluga 16" 73-C and 10" meter 1973 $80,057.0 50 $59,242.2 $20,814.8 73-D Meter Vault Bradley Corners 1973 $27,097.0 50 $20,051.8 $7,045.2 73-E 36" casing under R/R on Tiedeman 1973 $5,874.0 50 $4,346.8 $1,527.2 73-F 36"casing under Hwy 217& Greenburg 1973 $21,076.0 50 $15,596.2 $5,479.8 73-G 16" Di Crossing of Hall at Bonita 1973 $53,433.0 50 $39,540.4 $13,892.6 73-H 16" Di on McDonald from Hall to Pacific Hwy 1973 $142,376.0 50 $105,358.2 $37,017.8 73-1 Greenburg 16" Di $62,219.0 SO $0.0 $62,219.0 73-J Tiedeman Vault 1973 $17,177.0 50 $12,711.0 $4,466.0 73-K Tiedeman Vault(Elec) 1973 $5,460.0 50 $4,040.4 $1,419.6 77-A 36" Di 10 MG to No. 2 Res. 1977 $95,349.0 50 $62,930.3 $32,418.7 77-B 36" Casing on Pacific Hwy& McDonald 1977 $6,612.0 50 $4,363.9 $2,248.1 77-C 36"Casing on Bonita at R/R Tracks 1977 $2,660.0 50 $1,755.6 $904.4 78-A 16" Di on Pacific Hwy-McDonald to Gaarde 1978 $2,878.0 50 $1,841.9 $1,036.1 79-A 36" Di on Gaarde from Pacific Hwy to 121st 1979 $278,649.0 50 $172,762.4 $105,886.6 79-B 24"on Tiedeman from vault to south of R/R Tracks 1979 $55,539.0 SO $34,434.2 $21,104.8 80-A 24" Di on Tiedeman Tigard St.to Walnut St. 1980 $162,210.0 50 $97,326.0 $64,884.0 24" Di on Tiedeman-Fonner-121st from Walnut 81-A St.to Gaarde 1981 $202,119.0 50 $117,229.0 $84,890.0 80-B 24" Di on Bonita from SW 74th Ave.west to Bridge 1980 $11,442.0 50 $6,865.2 $4,576.8 Page 1 Appendix E (Updated 2010) Tigard Water District Supply Lines, Meters, and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations Map Accumulated Location Year Useful Depreciation Plant Value Net of Acc. ID 1994 Description Installed Purchase Cost Life (updated to 2010) Dep. (updated to 2010) 82-A 24" Di on Bonita from Sequioa 360'west of 72nd 1982 $133,460.0 50 $74,737.6 $58,722.4 Beaverton Tie-in at 135th Ave. and Scholls Ferry Rd. (Bore for Casing)TWD Share Split w/ 84-A Beaverton 1984 $3,950.0 50 $2,054.0 $1,896.0 72-E Bonita R/R Crossing Casing 1972 $17,413.0 SO $13,233.9 $4,179.1 72-F 16" Di on Bonita west of Bridge to 1972 $11,165.0 50 $8,485.4 $2,679.6 City of Tualatin Tie-in at 72nd Ave. and Bridgeport 80-C Rd. 1980 $31,180.0 50 $18,708.0 $12,472.0 24" on Bonita trom Pump Station to Waluga 84-B Reservoir 1984 $342,271.0 50 $177,980.9 $164,290.1 84-C 16" Master Meter(east of 1-5) 1984 $10,666.0 50 $5,546.3 $5,119.7 86-A 24" Di under R/R Tracks on Bonita 1986 $34,387.0 50 $16,505.8 $17,881.2 86-B Lake Grove Inter-tie Carmen & 1-5 1986 $11,090.0 50 $5,323.2 $5,766.8 Beaverton Tie-in 135th &Scholls Ferry Rd.TWO 88-A Share-Split w/Beaverton 1988 $4,306.0 50 $1,894.6 $2,411.4 36" Di Connections from 10 MG Res.to No. 2 87-A Reservoir 1987 $99,893.0 50 $45,950.8 $53,942.2 89-A 24" Di on Bonita from Bridge to McDonald St. 1989 $352,234.0 50 $147,938.3 $204,295.7 89-B 24" Di on Greenburg from Tiedeman to Hwy 217 1989 $152,530.0 50 $64,062.6 $88,467.4 91-A 24" Di on McDonald St. 1991 $423,383.0 50 $160,885.5 $262,497.5 Total Supply Lines, Meters and Pump Stations * $3,032,724.0 $1,649,974.7 $1,382,749.3 *Note: Error on original Total Calculations original $2,975,567.0 Page 2 Agenda Item No.: a IWB Meeting Date: q L - ?0 " City of Tigard . , Memorandum To: Intergovernmental Water Board From: Public Works Director Dennis Koellermeier Re: Draft Intergovernmental Agreement Date: September 1, 2010 Attached please find a draft of the proposed restated Intergovernmental Water Board (IWB) Intergovernmental Agreement. The attached draft has been modified by Tigard City Staff and the Tigard City Attorney's office to address both operational issues we foresaw as the managing authority, as well as structural changes needed to satisfy anticipated financial obligations. I will be discussing this with the Tigard City Council on September 28 and the IWB on October 13. AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN DURHAM, KING CITY AND THE TIGARD WATER DISTRICT AND THE CITY OF TIGARD FOR WATER SUPPLY 7th Draft 8/27/2010 This Agreement is made and entered into under authority of Chapter 190, Oregon Revised Statutes, by and between the cities of Durham and King City and the Tigard Water District, an ORS Chapter 264 district ("District") and the City of Tigard ("Tigard"), all Oregon municipal corporations ("the Parties"), in Washington County, Oregon. This Agreement replaces those individual agreements entered between Tigard and each of the other two cities and the District in or about 1993. This Agreement shall be effective in its entirety upon execution by all of the Parties. Upon effectiveness of this Agreement, those individual agreements entered between Tigard and each of the other two cities and the District in or about 1993, and all subsequent amendments thereto shall, by agreement of the Parties, be terminated and replaced by this Agreement. RECITALS: A. The three cities withdrew the areas included within their boundaries from the political boundary of the District effective July 1 , 1993. In consideration of their separate contracts with Tigard for the operation and maintenance of a water supply to serve all four Parties, Tigard granted to Durham, King City and the Tigard Water District (all Parties other than Tigard being the "Served Parties") an equitable interest in those assets (described as "System Assets" in those contracts) located within the combined service area. Water supply, storage and distribution facilities ("System Assets", as further defined herein) were not divided between the cities and the District as provided for by ORS 222.540 and instead, all such assets wherever located were pledged to the use of the City of Tigard for the operation and maintenance of a single water supply, storage and distribution system to serve all four Parties. All Parties now desire to clarify the method to determine the value of those assets and the Parties' equitable ownership interest in same and to establish the methods for valuation of both real and personal property. B. The Parties intend that Tigard continue to provide and be the Managing Authority of a water supply system serving all Parties for the duration of this Agreement including use of assets and facilities not within the combined service area that are owned by Tigard and other entities that are not parties to this Agreement. All Parties agree that Tigard is empowered to use any right of condemnation possessed by any of the Parties that is necessary to provide water consistent with the terms of this agreement, and will take any action necessary for Tigard to exercise that right upon the request of Tigard. C. The combined area as shown on Exhibit 1 constitutes the Tigard Water Service Area. The Parties desire to clarify the role of the Intergovernmental Water Board ("IWB") as to those matters where its actions are advisory to Tigard. Tigard Water Supply Agreement Page 1 In consideration of those premises as generally recited the Parties now AGREE: 1. Purpose and Scope. 1A. Tigard shall continue to furnish and maintain a domestic water supply, storage and distribution system serving all Parties to this Agreement. All Parties pledge to the City of Tigard, the use and benefit of all assets of that system, wherever located whether inside or outside the Parties combined service area, as they now exist and hereafter are constructed or accrue, for the duration of this Agreement as to each Party served. Each Party's equitable interest in any and all System Assets located within the combined service area shall be deemed held as an undivided common interest until the Party terminates this Agreement or until the Agreement is dissolved. 1 B. All other Parties delegate to Tigard the authority to enact water system rates and charges, including systems development or connection charges, with the advice of the IWB and as limited by state law, in such amounts as are necessary to maintain the system for the benefit of all Parties. Any and all such rates and charges shall be applied evenly to all customers in similar rate classes throughout the area now served by the system and each Party agrees to enforce those rates and charges without exception within that Party's political boundary. No Party may sell water provided under this Agreement to a third party without the prior written consent of Tigard. 1C. Tigard shall enter into all contracts necessary or desirable to operate the system in its own name. Tigard shall issue and make provisions for repayment of any and all municipal revenue bonds or similar instruments issued to finance capital improvements to the system and may pledge any and all system revenues for repayment of such bonds or instruments. Tigard shall prepare and issue all statements and filings necessary to issue such bonds and shall make all continuing disclosures regarding the bonds or instruments as may be required by state and federal law or bond purchase agreements. A served Party may not issue or contract for any debt that is to be secured by any assets that are necessary to operate or maintain the water supply system. 1 D. A served Party shall consider any request by Tigard to exercise powers of eminent domain if needed to acquire property within that Party's political boundary for use for the water supply system. A Party shall not unreasonably withhold its consent to such a request. A Party may condition its exercise of such authority on Tigard's agreement to pay all attorney fees and costs incurred in any such proceedings. 1 F. Tigard may incur, without the consent of any other Parties, 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 bodies of all minus one of the Parties. Each Party shall be liable for its proportionate share of any debt which has been incurred under this section. Tigard Water Supply Agreement Page 2 2. Term of Agreement. 2A. The term of this Agreement shall be perpetual. Any served Party may terminate this agreement as between that Party and all other Parties by delivering written notice to the other Parties not less than 5 years prior so as to allow the Parties to reconfigure the supply, storage and distribution system serving the remaining Parties after any division of assets that may result from such termination. 2B. Tigard may terminate this Agreement as to any served Party only for cause and only after Tigard has served written notice to that Party of that Party's default as to a material term of this Agreement and has allowed that Party not less than 30 days to cure that default. On a Party's continued default Tigard may serve written notice of termination to that Party not less than 5 years prior so as to allow that Party to arrange for a replacement water source and supply system with Tigard or with another supplier. 2C. Tigard agrees to negotiate in good faith a wholesale water supply contract with a terminating Party on that Party's request. Tigard and the terminating Party may mutually agree to a different date of termination. 3. Intergovernmental Water Board. A. The Intergovernmental Water Board (IWB) is continued. The IWB shall consist of five members, with one member to be appointed by each of the four Parties to serve at the pleasure of the appointing Party and a fifth "at large" member who resides in the service area as shown in Exhibit 1 to this Agreement to be appointed by a majority vote of the other members and who shall represent the interest of the general public. The IWB shall decide the process by which it seeks candidates for and appoints the member at large. A member representing a Party shall hold a current elective office for that Party and shall be deemed to act on behalf of the governing body of that Party when voting on any issue before the IWB. The extent to which that Party's member's vote at the IWB is binding on the Party that the member represents shall be determined by each Party. Each Party may appoint an alternate IWB member who may take the place of the regular member who is absent at any IWB meeting. An alternate member shall have the same qualifications as the regular member. A person appointed to fill a vacancy shall serve the term of the position that was vacated. The IWB by majority vote may declare a position to be vacant for that member's unexcused absence for more than 3 consecutive IWB meetings and shall notify the Party of any such declared vacancy. A Party so notified shall promptly appoint a replacement to fill the term of that vacancy. The Party members shall appoint a member at large for the remainder of the existing term of that position if and when that position becomes or is declared to be vacant. 4. Term of IWB Membership. An IWB member shall continue to occupy the same position on the IWB from and after Tigard Water Supply Agreement Page 3 the adoption of this Agreement for the duration of that member's term. Each IWB position including the Member at Large shall have a term of two years that begins on January 1 and expires on December 31 of the second year of each term. There is no limit on the number of terms that any person may serve in any position. Notwithstanding that the term of a position has expired, the Member occupying that position may continue to serve on the Board until a successor is appointed. 5. Conduct of IWB Meetings. 5A. The IWB shall schedule regular meetings and shall conduct all meetings according to Oregon public meetings law and any rule of conduct approved by the Tigard City Council. At its first meeting in every calendar year the IWB shall elect a chairperson for the ensuing calendar year and may elect other officers, all of whom shall have such powers and duties as assigned by the IWB. The Chair shall set the agenda for each meeting. A quorum of the IWB shall be three (3) members and no vote shall be taken on any matter requiring a vote without a quorum. All matters requiring a vote shall be enacted by affirmative vote of at least three (3) members present and voting except where this Agreement provides a different voting requirement. 5B. Tigard shall budget for and provide a sufficient number of employees to provide staff support to the IWB during and between meetings. Tigard employees shall serve at the pleasure of Tigard and shall have no voting privileges. Tigard shall provide adequate facilities and equipment for use for all IWB meetings. 6. Jurisdiction of IWB. 6A. The IWB shall hear and by a majority vote of those members present and voting may advise the Tigard City Council on the following issues: 1) Uniform rate structures to be charged to all water system customers throughout the system, including connection charges, with different rates to be allowed only for different classes of use (e.g., residential, commercial, industrial, irrigation, high elevation surcharge) and all rates and charges (e.g., block rates, consumption rates, lifeline rates) are to be limited to the costs of service; 2) Operation and maintenance issues referred to the IWB by Tigard or that a majority of the IWB raise on the IWB's own motion: 3) The proposed annual budget for the Parties' water supply system; 4) Policies and rules for curtailing water consumption in the same manner throughout the service area in cases of emergency: 5) Capital improvements not listed or scheduled in a capital improvements plan that is adopted as part of Tigard's annual budget for the system; 6) Tigard's proposed issuance of municipal revenue bonds or similar instruments to be used to finance water system capital improvements or to refinance existing water system revenue bonds; 7) Any and all rules and regulations issued by Tigard as to the use of the water system. Tigard Water Supply Agreement Page 4 8) A proposal by Tigard to provide water service to any area or to any public or private reseller of the water that is located outside the Parties' combined service area as shown on Exhibit 1 to this Agreement, or a proposal by Tigard to serve by wholesale contract a once-served Party who has terminated this Agreement; 9) A proposal by Tigard to enter a contract or partnership with a water source other than a mutual aid or similar emergency supply agreement; 10) The valuation of a served Party's ownership share(s) of System Assets when recalculated from time to time and when calculated at the time of a Party's termination of this Agreement, as further provided in this Agreement; 11) The sale or purchase of any real property used or proposed for use in the water system, and the terms of any such sale or purchase; 12) The assignment, sale or other conveyance or transfer of any Party's rights or liabilities under this Agreement to any person or entity other than another Party. 66. In all cases, action taken by the IWB shall be advisory to the City of Tigard. The City shall address and consider the Board's recommendation when taking action or a position on the matter. 7. Ownership and Valuation of Assets. 7A. Each of the Parties owns an equitable, undivided common share (as calculated per Section 7B of this Agreement) of all System Assets used in the system wherever located. The City of Tigard is authorized to pledge the Parties' equitable shares of ownership of any and all such System Assets, to the repayment of any revenue bonds, whereby such interest of the Parties shall be subordinated to the interest of the bond holder(s) as to any and all revenue bonds sold by Tigard to finance capital improvements to the Parties' water supply system the extent required by the debt instrument(s). 7B. A Party's equitable share of a system asset, whether real or personal property, shall be calculated using cumulative meter equivalency values, as defined by the American Water Works association Manual M1 , and as shown in Table 7.1. Tigard shall recalculate those shares every two years in the course of Tigard's annual audit and consolidated financial reporting process and will recalculate the Parties' shares on any Party's termination or on dissolution of this Agreement. The Parties' shared interests in any system asset that is real property and that Tigard uses in part for purposes other than operation of the water system shall be shown by lease agreements between the Parties and Tigard and recorded in county deed records. 7C. All System Assets and Other Assets shall be pledged by the Parties to the City of 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 service area. Tigard Water Supply Agreement Page 5 7D. The value of a system asset shall be calculated by one method for assets that are personal property and another method for real property. An asset that is personal property shall have that asset's depreciated value over its useful life using straight line depreciation as are set out in the "Tigard Water District System Assets and Liabilities Final Report" of November 1994 , Section ll, attached hereto as Exhibit 2. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. An asset that is real property shall be valued by an independent appraisal at such time as the property or a portion of same is assigned, sold or otherwise conveyed and at the time of any Party's termination or the dissolution of this Agreement. A list of all System Assets, as of July 1, 2010, is attached hereto as Exhibit 2. Assets not listed in Exhibit 2, or subsequent exhibit amending Exhibit 2, are System Assets if the asset falls within the meaning of the term "system asset" as defined at Section 15.5 of this Agreement. 7E. The proceeds of any sale or other conveyance of any portion or all of a system asset that is real property shall be considered a system asset and deposited into the "Water CIP Fund" or similar other segregated account for use for capital improvements 7F. Tigard shall maintain all assets according to industry standards and shall consider the disposition of any asset that is or becomes surplus to the needs of the water supply system. Tigard shall adequately insure all System Assets against all risks of loss and charge such costs to the Water system. Tigard on any served Party's request, given with adequate notice shall calculate the value of that Party's ownership share of a system asset for that Party's use in its annual budget as may be required by General Accounting Standards Board rules. 7G. For the duration of this Agreement, the cities of King City and Durham and the Tigard Water District, shall be entitled an annual surcharge which shall be calculated as set forth for the year 2010 in Table 7.1 of this Agreement. Tigard shall dispense that amount to a served Party at least once annually. Tigard Water Supply Agreement Page 6 Table 7.1 Current Meters AWWA TWSA 2009 Proposed 1% in Meter Asset $ per 2010 Est. 2010 Jurisdiction 2009 Rev calc 2009 E iv. Ownership M. E. Adjustment Surcharge Durham $190,856.52 $1,908.57 354 504 2.02% $3.79 $6.00 $3,024.00 Fire Hydrant $4,524.45 N/A N/A N/A N/A N/A N/A N/A King Cit $411,886.61 $4,118.87 1313 1541 6.17% $2.67 $6.00 $9,246.00 Metzger $465.07 N/A N/A N/A N/A N/A N/A N/A Tigard $5,739,880.45 N/A 12410 17533 70.25% $ - N/A N/A Tigard Water $1,703,524.79 $17,035.25 3742 5379 21.55% $3.17 $6.00 $32,274.00 $8,051,137.89 17819 1 24957 100.00% $44,544.00 8. Division of Assets on Termination or Dissolution. 8A. Upon termination of this Agreement, a Party shall have rights to the use of all System Assets equal to its equitable share, as calculated in section 7B. Tigard shall be compensated for any use of its water system necessary for the continued reasonable use of a system asset by a terminating Party. If a system asset is not essential to the operation of a terminating Party's water system, Tigard may terminate such jurisdiction's right in the system asset capital improvement by payment of a sum equal to the terminating Party's equitable share in the depreciated value of the asset. Alternatively, the Parties may negotiate a wholesale water supply agreement between the terminating Party and the remaining Parties. A Served Party that terminates this Agreement shall not thereby be relieved from liabilities and indebtedness previously contracted by Tigard for the benefit of the water supply system and shall assume its share of that liability and debt. 8B. If this Agreement is terminated by any Party and the terminating Party has remaining indebtedness incurred under Section 1 B, the terminating Party shall either: 1 . Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2. Pay annually its proportionate share for the indebtedness as payment is due. Tigard Water Supply Agreement Page 7 8C. Revenue generated by the operation of the supply system shall not be subject to distribution or accounting on a served Party's termination and shall not be subject to an equitable or other claim by that Party. 8D. A terminating Party may offer to convey its ownership share of System Assets to Tigard and may waive its rights to a division of assets as provided in this Agreement in consideration of a wholesale contract for water supply between the terminating Party and Tigard. Any such contract is subject to IWB review. If the asset is not essential to the operation of such jurisdictions' water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the jurisdiction's proportionate Interest in the depreciated value of such system asset. 8E. Tigard shall have the first right of refusal to purchase a served Party's share of a system asset on that Party's termination of this Agreement or on the Parties' decision to sell all or a portion of a system asset, on the same terms and conditions as offered to any other person or entity. The offer to purchase and Tigard's exercise of its rights as to that offer shall be on the same terms as in that certain Tenancy in Common agreement between the served Parties and Tigard for the property commonly known as 8777 Burnham Street, Tigard, Washington County, Oregon entered in or about June 2007, attached hereto as Exhibit 3. 9. Accounting and Records. 9A. Tigard shall account for the operation and maintenance of the water system as an enterprise fund using generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures. . 9B. Tigard shall respond in the normal course of business to all requests for public records by persons who are not Parties and shall defend the other Parties and hold them harmless from any and all claims or legal actions made or filed by the person making the records request. Tigard shall make all financial records available to any Party for inspection and copying on reasonable advance notice and during Tigard's ordinary business hours. 9C. Tigard shall present the proposed annual budget for the water system to the IWB for its consideration and recommendation(s) prior to Tigard's adoption of that budget. Tigard shall provide a copy of each year-end financial audit of its accounts to any Party upon that Party's request. 10. Boundary Changes, Mergers, Consolidations and Annexation of Territory The Parties' combined service area as it exists on the effective date of this agreement is shown with relation to the Parties' political boundaries on Exhibit 1 to this Agreement, attached and incorporated by this reference. Boundary changes, mergers, consolidations and annexation of territory shall occur consistent with state law, Metro Tigard Water Supply Agreement Page 8 Code and the adopted Urban Service Area agreements between the Cities and Washington County. Parties have the rights granted pursuant to Metro Code and State law to participate in these proceedings. All Parties may enter an urban services provider agreement with Tigard for water supply as provided by state law. Tigard reserves the right to determine if water service will be provided in all expansions affecting the Parties of this agreement. 11. Amendment. No amendment to this Agreement and no substitution of any exhibit to this Agreement shall be effective unless in writing signed and dated by all Parties. 12. Severability. If any portion of this Agreement is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, all remaining portions of this Agreement shall remain in effect until this Agreement is terminated or expired. After any declaration of invalidity or unconstitutionality of a portion of this Franchise, any Party may demand that one or more other Parties meet to discuss amending the terms of this Agreement to conform to the original intent of the Parties. If the Parties are unable to agree on a revised agreement within ninety (90) days after such a court decision is final and binding, any Party whose rights and obligations are affected by the decision shall have cause to terminate this Agreement by delivering one hundred and eighty (180) days notice to the other Party. 13. Property Conveyances. All parties agree in good faith to execute any and all real property conveyances deemed necessary or desirable to show each Party's share of ownership of such property as provided for in this Agreement. 14. Execution and Effective Date. This Agreement may be executed in several counterparts, all of which when taken together shall constitute one agreement binding on all Parties who have signed, notwithstanding that all Parties are not signatories to the same counterpart. Each copy of this Agreement so executed shall constitute a duplicate original. 15. Definitions. As used in this Agreement, the below terms are defined as follow. 15.1. "Assets" include real, personal and intangible property. Assets are divided into two different groups, "System Assets" and "Other Assets." 15.2. "Intangible Property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income 15.3. "Managing Authority" means that Tigard will provide water to properties and customers in the current jurisdictions of the Parties equally. If circumstances require water restrictions, each jurisdiction shall share equally. Tigard will provide equally and Tigard Water Supply Agreement Page 9 in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers in the current jurisdictions of the Parties, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades and billing functions. 15.4. "Other Assets" are Assets not necessary for the operation of the City of Tigard's water supply system. Other Assets shall remain 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 are Other Assets. 15.5. "System Assets" are Assets necessary for the operation of the City of Tigard's water supply system. As used herein, the term System Assets does not include any assets constructed, under construction, or to be constructed by the City of Tigard pursuant to the certain Water Agreement between the cities of Tigard and Lake Oswego, entered into on August 6, 2008. Other Assets shall become the property of the jurisdiction in which the asset is located. The term "System Assets" as used in this Agreement includes, but is not limited to: i) all interests in real property, all improvements on that property and all other personal property and facilities wherever located that is used by any Party for the supply, treatment, storage, transmission or distribution of potable water to that Party or to any other person or entity; and, ii) all revenue generated from the sale of any portion of the Parties' domestic water supply to any person wherever located, including connection and systems development charges; and, iii) all rights to the use of surface-, in stream- or groundwater held by- or for the beneficial use of any Party to this Agreement, notwithstanding that the formal certification or other evidence of that right may name fewer than all Parties to this Agreement as the holder or owner of that right; iv) all contracts held by Tigard or any other party with any entity not a party to this Agreement for a supply of water for the Parties' joint use. Tigard Water Supply Agreement Page 10 Exhibit 1 r - Exhi — —I Tigard Water Service Boundary , ON TiU A L.A•Telari� Tualatin Valley Water District OL `Y Ii PJ ,A,L,LrE,Y W A'TE,R .� D;ISTR,ICrY S-E,R,V'I,"'C- E_ AREA i 4 �D A r v t ■ •-■-s-a-s'■� �0 d� ■ �1 low ■ RD W ER ■ ,�: S VICE REA ■ LO • t n Durham Rd Beef Bend Rd G SON ,gyp ■ Y ■ w • ID ■ N "r .� i r Exhibit 2 TWD Tigard King City Durham Utility Plant In Service Cost 21.55% 70.25% 6.17% 2.02% Land $6,740,559 $1,452,657.87 $4,735,444.91 $416,094.71 $136,361.51 Buildings $1,156,146 $249,161.02 $812,227.25 $71,368.89 $23,388.83 Improvements other than buildings $25,259,485 $5,443,671.61 $17,745,546.00 $1,559,268.01 $510,999.38 Machinery and equipment $1,045,000 $225,207.95 $734,143.85 $64,507.85 $21,140.35 Total $34,201,190 $7,370,698.46 $24,027,362.01 $2,111,239.46 $691,890.07 Accumulated Depreciation -$7,221,051 -$1,556,208.70 45,073,004.96 -$445,755.48 -$146,081.86 Less Depreciation Total 1 $26,980,139 $5,814,489.76 $18,954,357.05 $1,665,483.981 $545,808.21 "Buildings" includes structures and related improvements other than pump houses, reservoirs, meter and value vaults. "Improvements ements other than buildings includes all pipelines, associated appurtenances,reservoirs,pumping stations,meter vaults, water wells and other hydraulic facilities that convey or control the flow of water. Utility plant in service is stated at cost. Depreciation is computed on assets placed in service, using the straight-line method, over their estimated useful lives as follows: Buildings 33 years Supply and Distribution Lines 50 years Wells, Reservoirs and Pump Stations 10 to 40 years Machinery and Equipment 5 to 10 years Appendix B (Updated 2010) Tigard Water District Allocation of LanclValues Tigard Water Site Cost District Tigard Durham King City Future Reservoir Scholls Ferry Rd $125,000 $21,988 $91,725 $5,538 $5,750 Reservoir No. 3 $6,000 $1,160 $4,840 $0 $0 Hi Tor Reservoirs $21,600 $4,177 $17,423 $0 $0 Administration Building $385,550 $67,818 $282,917 $17,080 $17,735 Reservoir No. 1 $42,000 $7,388 $30,820 $1,861 $1,932 Reservoir No. 4 (1) $0 $0 $0 $0 $0 10 MG Reservoir $50,000 $8,795 $36,690 $2,215 $2,300 Baylor (1) $0 $0 $0 $0 $0 Future Reservoir on SW 150th $66,095 $11,626 $48,501 $2,928 $3,040 Reservoir No. 2 (1) $0 $0 $0 $0 $0 Less: Misc. Adjustment -$3,686 -$648 -$2,705 -$163 -$170 1995-Present - Menlor Reservoir Site $1,948,000 $342,653 $1,429,442 $86,296 $89,608 Price Reseroir Site $1,200,000 $211,080 $880,560 $53,160 $55,200 Future Cach Reservoir Site _$2,900,000 $510,110 $2,128,020 $128,470_ $133,400 Total Land Value $6,740,559 $1,186,146 $4,948,232 $297,384 $308,796 (1) No Recorded land value at time of property deeded to Tigard Water District. Value to be determined at such time as an agency withdraws. Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Station#2 Booster Pump SW-21PST Generator,Stand By,20OKW $23,265 Mar-87 10 $23,265 $0 NW-1637, NW-1632, N W 1643, NW-32MET Beaverton Tie-in at 121st and Scholls Ferry $6,541 Jan-79 50 $4,055 $2,486 Eleven Reducing Stations $165,000 Miscellaneous $104,936 Pre 1994-Total Reservoirs,Pump Stations,and Wells Adjusted to 2010 $3,560,628 $2,535,536 $1,025,092 Updated 1995-2010 Projects Price Reservoir 56,162,758 Jun-08 40 $308,138 $5,854,620 Menlor Reservoir $3,698,375 Jun-97 40 $1,201,972 $2,496,403 ASR 1 50 ASR 2 $1,890,000 Apr-OS 50 $189,000 $1,701,000 ASR 3 $700,000 Jan-08 50 $28,000 $672,000 Water Telemetry Upgrade $300,000 Jun-09 $300,000 New Pump Station at 10mg Site/Update Tank $5,800,000 Jun-10 10 $0 $5,800,000 Tiedeman PRV 115000 Jun-OS 40 $14,375 $100,625 Eleven Reducing Stations added since 1994 at 20,000.00 each $220,000 1995-Present Total Reservoirs,Pump Stations,and Wells $17,144,648.23 Grand Total $18,169,740.01 Page 4 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Well#2 Deep Well Pump#2,Depth 453', SW-20WEL w/Accessories $3,398 Feb-69 40 $3,398 $0 Pump House,(Deep Well#2)is a Class D Structure,Containing 144 S.F. $592 Jul-49 40 $592 $0 Total $3,990 $3,990 $0 Well#3 SW-8WEL Deep Well Pump#3,Depth 494' $4,450 Jul-60 40 $4,450 $0 Pump House(Deep Well#3)is a Class D Structure,96 S.F. $864 Jul-60 40 $864 50 Total $5,314 $5,314 $0 Hunziker Road Pump Station SE-45PST Hunziker Pump Station Package,1400 GPM $11,250 Jul-69 30 $11,250 $0 Pump Station #1 Pump Station#1,8 x8'Package Station SE-50P5T w1 2-50 HP $21,470 Jul-66 10 $21,470 50 Generator,Stand By $23,865 Aug-85 10 $23,865 $0 Total $45,335 $45,335 $0 P.S.at 10 MG Reservoir SW-13PST Pump Station Package,2000 GPM $116,316 Jul-92 10 $116,316 $0 Hi Tor 1.1 MG Reservoir SW-SIRES Reservoir,Site#2,Concrete Tank,1.1 Million Gallons $616,036 Jul-91 40 $292,617 $323,419 Baylor Reservoir(1.125 MG) NE-53RES Reservoir,Steel Tank,1.125 Million Gallons $63,504 Jul-69 40 $63,504 $0 Reservoir Ill SW-55RES Addition to Tank,Added 8'of Height $9,347 Jun-70 40 $9,347 50 Original Construction,42'6"Dia.x 20'High $16,896 Jul-54 40 $16,896 $0 Total $26,243 $26,243 $0 Page 3 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Hi Tor 0.2 MG Reservoir SW-6RES Fence,Chain Link,600'x 5'High $1,998 Jul-71 40 $1,948 $50 Reservoir,Concrete Tank,200,000 Gallons $36,300 Jul-63 40 $36,300 $0 Total $38,298 $38,248 $s0 132nd Pump Stat .SW-25PST Fence,Chain Link,BO L.F.x 6'High $640 Jul-87 10 $640 $0 Pump Station,132nd St Package,3S0 GPM $18,792 Jul-87 10 $18,792 $0 Total $19,432 $19,432 $0 Saylor Reservoir(1.0 MG) Fence,Chain Link,800 L.F.x 6'Barb Wire& NE 52RES Gate $3,176 Jul-70 40 $3,176 $0 Reservoir,Steel Tank,1 Million Gallons $46,100 Jul-63 40 $46,100 $0 Total $49,276 $49,276 $0 Hi Tor Pump Station SW-56PST Utility Vault,Concrete,9'x 14' $5,112 Apr-85 10 $5,112 $0 Pump Station Package,3 Pump,25 HP $52,902 Jul-71 10 $52,902 $0 Generator,Stand By $18,792 May-85 10 $18,792 $0 Utility Vault,Precast Concrete,15 x 9 x 8' CH,Lights&Ventilation $5,940 Dec-87 10 $5,940 $0 Total $82,746 $82,746 $0 Well#4 SW-15WEL Deep Well&Pump,Depth 925' $8,694 Nov-65 40 $8,694 $0 Pump House is a Class C Structure Containing 144 S.F. $1,148 Jul-68 40 $1,148 $0 Total $9,842 $9,842 $0 Well#1 SE-S1WEL Deep Well Pump#1,Well Depth 612' $6,989 Jul-47 40 $6,989 $0 Pump House do 143 S.F.(Deep Well#1) $668 Jul-47 40 $668 $0 Motor Replace Well Pump#1 $4,673 Aug-82 40 $3,271 $1,402 Total $12,330 $10,928 $1,402 Page 2 of 4 Appendix C(Updated 2010) Tigard Water District Detailed Calculations of Reservoirs,Wells and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations 1993 Accumulated 12/31/93 Plant Value Net of Asset Depreciation Accumulated Depreciation Number Description Original Cost Purchase Date Useful Life (Updated 2010) (Updated 2010) Reservoir#3 SW-7RES Fence,Chain Link w13 Strand Barb Wire& Gate approximately 1,200' $7,930 Jul-84 40 55,155 $2,776 Additional Construction,Add 12'to 67'Dia. x 32' $77,190 Jul-72 40 $73,331 $3,860 Original Construction,500,000 Gallon,67' Dia.x 20'High $31,352 Jul-60 40 $31,352 $0 Reservoir#3,Concrete Tank,2.5 Million Gallons,124'Dia.x 29'Deep $588,687 Jul-83 40 $397,364 $191,323 Total $705,159 $507,201 $197,958 Reservoir#1 SE-22RES Fence,Chain Link w13 Strand Barb Wire& Vehicle Gate,approx.1,350 L.F. $4,658 Jul-69 40 $4,658 $0 Reservoir,Concrete,1.0 Million Gallons $51,137 Jul-60 40 $51,137 $0 Reservoir,Concrete,1.0 Million Gallons $82,885 Jul-69 40 $82,885 $0 Total $138,680 $138,680 $0 10 MG Reservoir SW-14RE5 Fence,Chain Link,1,300 L.F.x 6'w/Gate $3,962 Jul-78 40 $3,170 $792 Reservoir,Concrete Tank,10 Million Gallons $1,131,099 Jul-78 40 5904,879 $226,220 Total $1,135,061 $908,049 $227,012 Reservoir#4 FenCe,Lnain Link,bUU L.F.x b'barb wire& SW-16RES Gate $1,872 Jul-fib 40 $1,872 $0 Reservoir#4,Concrete Tank,1 Million Gallons $65,171 Jul-66 40 $65,171 $0 Total $67,043 $67,043 $0 Hi Tor 1.0 MG Reservoir SW-4RES Fence,Chain Link,600 L.F.x 6'High $1,872 Jul-70 40 $1,872 $0 Million Gallons $113,159 Jul-71 40 $110,330 $2,829 Total $115,031 $112,202 $2,829 Page 1 of 4 Appendix E (Updated 2010) Tigard Water District Supply Lines, Meters, and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations Map Accumulated Location Year Useful Depreciation Plant Value Net of Acc. ID 1994 Description Installed Purchase Cost Life (updated to 2010) Dep. (updated to 2010) 82-A 24" Di on Bonita from Sequioa 360'west of 72nd 1982 $133,460.0 50 $74,737.6 $58,722.4 Beaverton Tie-in at 135th Ave. and Scholls Ferry Rd. (Bore for Casing)TWD Share Split w/ 84-A Beaverton 1984 $3,950.0 50 $1,054.0 $1,896.0 72-E Bonita R/R Crossing Casing 1972 $17,413.0 50 $13,233.9 $4,179.1 72-F 16" Di on Bonita west of Bridge to 1972 $11,165.0 50 $8,485.4 $2,679.6 City of Tualatin Tie-in at 72nd Ave.and Bridgeport 80-C Rd. 1980 $31,180.0 50 $18,708.0 $12,472.0 24" on Bonita trom Pump Station to Waluga 84-B Reservoir 1984 $342,271.0 50 $177,980.9 $164,290.1 84-C 16" Master Meter(east of 1-5) 1984 $10,666.0 50 $5,546.3 $5,119.7 86-A 24" Di under R/R Tracks on Bonita 1986 $34,387.0 50 $16,505.8 $17,881.2 86-B Lake Grove Inter-tie Carmen& 1-5 1986 $11,090.0 50 $5,323.2 $5,766.8 Beaverton Tie-in 135th &Scholls Ferry Rd.TWO 88-A Share-Split w/Beaverton 1988 $4,306.0 50 $1,894.6 $2,411.4 36" Di Connections from 10 MG Res.to No. 2 87-A Reservoir 1987 $99,893.0 50 $45,950.8 $53,942.2 89-A 24" Di on Bonita from Bridge to McDonald St. 1989 $352,234.0 50 $147,938.3 $204,295.7 89-B 24" Di on Greenburg from Tiedeman to Hwy 217 1989 $152,530.0 50 $64,062.6 $88,467.4 91-A 24" Di on McDonald St. 1991 $423,383.0 50 $160,885.5 $262,497.5 Total Supply Lines,Meters and Pump Stations * $3,032,724.0 $1,649,974.7 $1,382,749.3 *Note: Error on original Total Calculations original $2,975,567.0 Page 2 Appendix E (Updated 2010) Tigard Water District Supply Lines, Meters, and Pump Stations Utility Plant Values Net of Accumulated Depreciation Calculations Map Accumulated Location Year Useful Depreciation Plant Value Net of Acc. ID 1994 Description Installed Purchase Cost Life (updated to 2010) Dep. (updated to 2010) 72-A Bonita R/R Crossing Casing 1972 $17,413.0 50 $13,233.9 $4,179.1 72-B 16" Di on Bonita west of Bridge to 1972 $11,165.0 50 $8,485.4 $2,679.6 72-C Bonita R/R Crossing Casing 1972 $17,413.0 50 $13,233.9 $4,179.1 72-D 16" Di on Bonita west of Bridge to Hall Blvd. 1972 $11,165.0 50 $8,485.4 $2,679.6 16" Di on Bonita from 72nd Ave.to west side of 73-A bridge 1973 $48,382.0 50 $35,802.7 $12,579.3 73-B Bonita Pump Station 1973 $67,031.0 10 67,031 $0.0 Pipeline& Meters-Meter Vault to Walluga 16" 73-C and 10" meter 1973 $80,057.0 50 $59,242.2 $20,814.8 73-D Meter Vault Bradley Corners 1973 $27,097.0 50 $20,051.8 $7,045.2 73-E 36"casing under R/R on Tiedeman 1973 $5,874.0 50 $4,346.8 $1,527.2 73-F 36" casing under Hwy 217&Greenburg 1973 $21,076.0 50 $15,596.2 $5,479.8 73-G 16" Di Crossing of Hall at Bonita 1973 $53,433.0 50 $39,540.4 $13,892.6 73-H 16" Di on McDonald from Hall to Pacific Hwy 1973 $142,376.0 50 $105,358.2 $37,017.8 73-1 Greenburg 16" Di $62,219.0 50 $0.0 $62,219.0 73-J Tiedeman Vault 1973 $17,177.0 50 $12,711.0 $4,466.0 73-K Tiedeman Vault(Elec) 1973 $5,460.0 50 $4,040.4 $1,419.6 77-A 36" Di 10 MG to No. 2 Res. 1977 $95,349.0 50 $62,930.3 $32,418.7 77-B 36"Casing on Pacific Hwy& McDonald 1977 $6,612.0 50 $4,363.9 $2,248.1 77-C 36"Casing on Bonita at R/R Tracks 1977 $2,660.0 50 $1,755.6 $904.4 78-A 16" Di on Pacific Hwy-McDonald to Gaarde 1978 $2,878.0 50 $1,841.9 $1,036.1 79-A 36" Di on Gaarde from Pacific Hwy to 121st 1979 $278,649.0 50 $172,762.4 $105,886.6 79-B 24"on Tiedeman from vault to south of R/R Tracks 1979 $55,539.0 50 $34,434.2 $21,104.8 80-A 24" Di on Tiedeman Tigard St. to Walnut St. 1980 $162,210.0 50 $97,326.0 $64,884.0 24" Di on Tiedeman-Fonner-121st from Walnut 81-A St.to Gaarde 1981 $202,119.0 50 $117,229.0 $84,890.0 80-8 24" Di on Bonita from SW 74th Ave.west to Bridge 1980 $11,442.0 50 $6,865.2 $4,576.8 Page 1 Water Vehicles and Equipment Equipment Date Cost Life Depreciation UNIT ID SERNO EQ DESC MISC SMALL EQUIPMENT 2005 $65,000 10 $32,500 949 VM076061 TRAIL KING 33' FLATBED TRAILER 1992 $25,000 10 $25,000 954 1WC200E24W403449 WELLS CARGO SAW TRAILER 2005 $15,000 10 $7,500 994 184BU16217B003868 2007 EAGLE SINGLE AXLE SHORING SHIELD TRAILEF 2007 $20,000 10 $6,000 072 LLG027636 CASE 580 SUPER L BACKHOE 2002 $100,000 10 $80,000 07-050 DDT00553 2007 430E CAT BACKHOE/LOADER 2007 $110,000 10 $33,000 07-047 ATI F1 0415 2007 CAT FORKLIFT TRUCK P6000-LP(PROPANE) 2007 $60,000 10 $18,000 073 365512 1981 JD 450C DOZER 1981 $80,000 10 $80,000 708 10-1700 TRAY-L-VAC TRAILER MOUNTED VACTOR/VALVE EXERCISER 2010 $50,000 10 $0 Vehicles UNIT ID LICENS VEH DESC 10-065 E250108 2010 FORD F550 UTILITY TRUCK 2010 $40,000 10 $0 091 E225154 FORD F-550 2005 $40,000 10 $20,000 004 E222694 F-150 2005 $20,000 10 $10,000 04-004 E221 174 2004 FORD E-350 2004 $30,000 10 $18,000 04-005 E230107 2004 VOLVO 10 YD DUMP TRUCK 2004 $110,000 10 $66,000 04-006 E230113 2004 FORD F350 UTILITY TRUCK 2004 $30,000 10 $18,000 05-016 E231 677 2005 ASTRO CARGO VAN 2005 $20,000 10 $10,000 075 E222696 2002 ASTRO PASSENGER VAN 2002 $20,000 10 $16,000 063 E208269 FREIGHTLINER 10 YD DUMP TRUCK 2005 $110,000 10 $55,000 082 E212623 ASTRO CARGO VAN 2002 $20,000 10 $16,000 06-030 E238051 2006 FORD F-150 PICKUP 2006 $20,000 10 $8,000 08-048 E239748 2008 FORD F350 TRUCK 4X4 2008 $35,000 10 $7,000 08-057 E244401 2008 CHEVROLET COLORADO 4WD 2008 $25,000 10 $5,000 $1,045,000 $531,000 73-0 Legend 0 Project Points Large Water Pipe 16"PIPE s3i' fi 1 „�tL 18"PIPE 3-F ' 1i�I 1L T"��'�J� 20"PIPE 84-A 88-A ry,.; ,i 24"PIPE F -jt^:7 36"PIPE 79-B -- 7 f �lt`7�7` 0 Water Reservoirs 73-J I I Tigard Water Service Property 73-K Tigard Water Service Boundary 80-A City Boundaries 89-B Beaverton O Durham King City Lake Oswego ,r 81-A Portland °- s Tigard O �' 16. Qi A Tualatin 79-A -B 73-H J _ 77 11 A J� k _ 1- 73-G 72-A 3-B 84-B �7-A __ 8 i2Ar'� ' iy-` 1 .� �� ___J 'lI _ _ =_ -,I u� _r -�/ X12-E % �)_ 8�1 C ; it i 89-A 80-6 73-A I�I 11 �' L s �I . ii z „- o_ 86-B L , it - u t}. _u� _,I I' V 80-C 0 1,250 2,500 5,000 7,500 10,000 Feet -; Exhibit 3 TENANCY IN COMMON AGREEMENT THIS AGREEMENT is made and effective the J.2-11lay of %Xt,&L, �b'�, by CITY OF TIGARD ("Owner"), CITY OF DURHAM ("Owner"), CITY OF KING CITY, ("Owner"), and TIGARD WATER DISTRICT,("Owner"),collectively known as the INTERGOVERNMENTAL WATER BOARD(IWB),and hereinafter referred to as the"Owners".The Owners agree as follows: WHEREAS, the ownership of the Water Building and associated real property (Water Building Property) was vested in the Tigard Water District(TWD) as a single entity and is now owned by City of Tigard,City of King City,City of Durham and Tigard Water District as Tenants In Common; and WHEREAS,the IWB and its member jurisdictions desire to provide for the management and control of the Property; and WHEREAS,the Water Building Property is suitable and has been used for water operations,City of Tigard offices, and IWB and TWD meetings; and I WHEREAS, the Owners of the Water Building Property have determined that the preferred disposition of the Water Building property is to lease it to the City of Tigard for use in water operations, as city offices and other related activities. The Owners agree as follows: I. Acquisition of Property. The Owners have acquired certain real and personal property commonly known as THE WATER BUILDING, located at 8777 SW Burnham Street, Tigard, Oregon, and more particularly described as Exhibit A attached hereto and incorporated by this reference (the "Property"). 2. Co-Tenancy. The Property has been improved as the Water Building,a building suitable for water operations,city offices and related activities.The intent of the Owners is to enter into a Lease with the CITY OF TIGARD and to manage and control the Property as Co-Tenants through this Agreement. 3. Business Name. The business of the co-tenancy shall be conducted under the name "INTERGOVERNMENTAL WATER BOARD (IWB)". An application for registration of a fictitious business name shall be filed and published as provided by law. 4. Declaration of Ownership. The owners as described intend that their relationship with respect to the Property shall be a tenancy in common. The Owners intend that no provision of this Tenancy In Common Agreement shall be construed as establishing a partnership,joint venture,or any other form of business entity. Page 1 of 10—Water Building Tenancy In Common Agreement 5. Ownership Interest. The names of the Owners and their percentage of undivided interests in the Property are currently as follows: Name Percentage Ownership City of Tigard 70% Tigard Water District 22% City of King City 5.5% City of Durham 2.5% The Property has been acquired by the co-tenancy. The Owners shall be responsible for payment of all financial obligations of the co-tenancy in the proportion of their ownership interests. Every twenty-four(24)months and at the time of the sale of the Property,the ownership proportions shall be adjusted to reflect population changes as a result of annexation,and Owners will execute a new deed to reflect the changes. b. Expenses. The expenses incurred with respect to the Property shall be the obligation of the Owners. Anticipated expenses include, but are not limited to: cost of repairs, maintenance, debt service, taxes, assessments, insurance and property management, and as provided for in the Intergovernmental Agreements. In the event of a conflict between or among the agreements with respect to this Tenancy In Common, this Agreement will prevail. Periodically, the Owners shall determine the extent, if any, of additional funds necessary to provide for the payment of expenses. Each Owner shall pay a portion of the amount necessary to pay expenses equal to the Owner's undivided interests in the Property. Payment shall be made within thirty(30)days for receipt by the Owner of notice of the amount due. 7. Improvements. In the event the Owners shall further improve the Property,each Owner shall be obligated for the costs of such improvements in an amount proportionate to the Owner's undivided interest in the Property, except as may otherwise be provided for in the Lease. The Owners shall determine whether to assess the cotenants for the amount required for said improvements,or to finance said amount as a joint debt of the cotenants. In the event an assessment is made, payment shall be made within thirty (30) days of receipt by the Owner of notice of the amount due. 8. Default. In the event an Owner shall fail to pay his or her obligations within the time prescribed above in the amount due under the terms of this Agreement,the undivided interest of the nonpaying Owner shall be subject to a lien in the amount of the deficiency. The provisions of Section 18 of this Agreement relating to liens shall be applicable to an unpaid obligation of an Owner. 9. Revenue, Expenses and Deductions. Subject to Section 12, the revenues, expenses and Page 2 of 10—Water Building Tenancy In Common Agreement deductions from the operation and any sale of the Property shall be shared by the Owners in proportion to their respective undivided interest in the Property. 10. Disbursements. The Owner shall determine if funds are available for disbursement from the operations of the Property and shall direct the Manager hereinafter described to pay said amounts to the Owners in proportion to their respective undivided interests in the Property, subject to the provisions of the Lease and the Intergovernmental Agreement. 11. Proceeds from Sale or Refinance. Proceeds received from any sale or refinancing of the Property,or from the condemnation or destruction of the Property,to the extent that the proceeds are not needed for debt service, anticipated expenses, and reasonable reserves for contingencies as determined by the Owners, shall be retained by the IWB as reserves for capital projects. Notwithstanding the foregoing, the Owners may determine to use part or all of said proceeds to reduce or repay any mortgage indebtedness,contract,or other liability incurred in connection with the Property. 12. Management. The Owners have each engaged the CITY OF TIGARD("Tigard")to manage the property under terms and conditions contained in the Intergovernmental Agreement and the Water Building Lease. The Owners agree that Tigard may enter into a separate off-site management agreement with a management company of Tigard's choice as it may approve, for management of the Property. 13. Duties of Property Manager. The City of Tigard shall be responsible for performance of all services and duties as specified in the Water Building Lease. None of the Owners, their agents or representatives,shall be entitled to any compensation for management or other services rendered to or for the Property unless such compensation is expressly authorized by the Owners,and subject to the Lease, and Intergovernmental Agreement. 14. Allocation of Purchase Price on Sale or Other Distribution of Property. The allocation ofthe purchase price received for any sale of the Property as between real property, improvements and personal property, shall be determined by the IWB and the accountant for the co-tenancy, in consultation with the Owners,who shall be bound by said determination. 15. Liens and Encumbrances. Any lien or encumbrance on an Owner's undivided interest in the Property,including but not limited to, any judicial attachment, any judgment lien, any lien arising out of the order or judgment of any court, any lien in connection with taxes claim due any governmental unit, any lien arising under federal or state bankruptcy or insolvency laws, and any lien arising from non-payment by an Owner of amounts pursuant to the terms of this Agreement, shall be discharged by said Owner,and the undivided interest released,within ten(10)days after the lien is filed or otherwise becomes effective. Failure to discharge the lien and obtain release of the undivided interest within the stated time shall constitute a default of this Agreement. During the term of the default,interest shal l accrue on any unpaid balance due the co-tenancy at the rate of ten percent (10%) per annum. All amounts due, plus interest thereon, shall be immediately due and payable without further demand and notice. In addition to the foregoing,the remaining Owners may Page 3 of 10—Water Building Tenancy In Common Agreement i agree to revoke the right of the defaulting Owner to vote and manage the affairs of the co-tenancy. Any cash distributions which may become payable to a defaulting Owner shall be reduced by the outstanding amounts due plus interest thereon. The remaining Owners shall have the right,but not the obligation, to pay the deficient amount and to obtain release of the lien and to receive reimbursement for the amount of the deficiency plus interest as provided above, from any cash distributions which may become payable to the defaulting Owner. 16. Bonding of Liens. An Owner whose interest in the Property is subject to a lien may,within thirty (30) days after the lien is filed or otherwise becomes effective, deposit with the remaining Owners cash,a corporate surety bond,or other security satisfactory to the remaining Owners,in an amount sufficient to discharge the lien and all costs,attorney's fees and other charges which could accrue as a result of a foreclosure or sale under the lien. Upon making said deposit,the Owner shall not be considered in default of this Agreement. 17. Waiver of Rialrt of Partition. Each Owner irrevocably waives the right to directly or indirectly maintain an action or petition in any court for a partition of the Property. 18. Restrictions on Sale of the Owner's Interest. An Owner may sell, convey or transfer the Owner's undivided interest in the Property only in compliance with the terms of this Section 18,the Intergovernmental Agreement,and the Water Building Lease(granting Right of First Refusal to the City of Tigard). Upon the withdrawal of an Owner from the IWB,the remaining Owners shall have authority to act on behalf of the withdrawn Owner with respect to the Property. Any sale of a portion of the interest of an IWB member jurisdiction must be to another member jurisdiction or to the IWB as a group. 18.1 Sale. An Owner may sell, convey or transfer its interest only to another Owner. 18.2 Price. The selling price of the Water Building property shall be established through an appraisal performed by an appraisal company highly experienced in valuation of properties similar to the Water Building Property and selected by the mutual agreement of Seller and Purchaser,except the value of the improvements on the Property,which shall be valued according to the System Assets and Liabilities Final Report (Section 11, Utility Plant in Service) prepared by Economic and Engineering Services, Inc. dated November 1994. 19. Right of First Refusal. No Owner/Landlord of the Property shall sell or transfer the Owner's/Landlords undivided interest in the Property except as set forth herein and in the Water Building Lease to the City of Tigard. In the event that three(3)out of four(4)of the representative jurisdiction Owners vote to sell the Water Building Property,the City of Tigard shall have the Right of First Refusal. Within 30 days of notification to Tenant that the Property will be sold,Tenant shall notify Owner of the intent to exercise the right to purchase the Property. Within 30 days of Tenant's notification to Landlord,the City of Tigard shall determine the Canterbury Property improvement value as set forth in the System Assets and Liabilities Final Report (Section 11, Utility Plant in Service)prepared by Economic and Engineering Services,Inc.dated November 1994,and order an appraisal of the land to be performed by an appraisal company highly experienced in valuation of Page 4 of 10—Water Building Tenancy In Common Agreement i land similar to the Property and agreed upon by seller and purchaser. Within 30 days of receiving the determination of value of the Property,the sale shall be closed. 20. Vote on Sale of Water Building. Subject to the provisions of the Water Building Lease and of this Tenants in Common Agreement Section 18.1 Right of First Refusal,the Owners may sell the Water Building upon an affirmative vote of three (3) out of four(4)of the representative Owner jurisdictions and the net proceeds distributed to the Owners under the terms of Section 1 I above, 21. Required Vote for Determinations. All determinations to be made by the Owners under the terms of this Agreement, other than sale of the Property, shall be by majority vote of the five (5) members of the IWB. Unless specifically provided otherwise,an affirmative vote of three or more of the IWB members shall be required for any action to be taken,any determinations to be made,or any authorizations to be given by the Owners under the terms of this Agreement. 22. Manner of Voting. All determinations to be made by the Owners shall be made at meetings or by telephone conferences. However,the Owners may make determinations without a meeting or telephone conference by obtaining the signed, written vote of each Owner. 23. Events of Termination. The co-tenancy Agreement shall continue until terminated by the occurrence of one of the following events: the sale of the Property, the majority agreement of the Owners to terminate this Agreement, or the majority Agreement of the Owners to divide and separate the Property among themselves. 24. Effect on Obligations. Termination shall not affect the rights or obligations of the Owners which arise prior to the termination. 25. Notices. All notices will be in writing and delivered by mail or in person to each Owner. 25. Attorney Fees. In the event of suit, action or arbitration to interpret or enforce any of the terms of this Agreement, including any action under the Bankruptcy laws of the United States,the prevailing party or parties shall be awarded such sum as the court or arbitrator may adjudge reasonable as attorney fees in such suit,action or arbitration and in any appeal or review therefrom. 27. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the Owners,their respective heirs,executors,administrators,legal representatives,successors and assigns. 28. Amendment. This Agreement may be amended at any time by the Owners in the same manner as they make any other determination under Sections 21 and 22 of this Agreement. 29. Integration. This Agreement contains the entire Agreement of the Owners and supercedes all prior and contemporaneous agreements between them with respect to the co-tenancy. Except as fully set forth herein, there are no presentations, agreements, or understandings, oral or written, among the Owners relating to the co-tenancy,except for the Intergovernmental Agreements,and the Page 5 of 10—Water Building Tenancy In Common Agreement Lease. 30. Severability. If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each term or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 31. Governing Law. This Agreement shall be subject to,and governed by,the laws of the State of Oregon. The parties have executed this agreement as of the date first written above. Page 6 of 10—Water Building Tenancy In Common Agreement By: � IWB Representative for the City of Tigard CERTIFICATE OF NOTARY PUBLIC STATE OF OREGON COUNTY OF Signed or attested before me on eel/,1_/1�� 94- ,2007,by /=�1'�7�/�/� �. L��I I-al OFFICIAL SEAL Signature o otarial Officer "•. GREERAGASTON NOTARY PUBLIC-OREGON COMMISSION NO.373020 MY COMMISSION EXPIRES OCT.10,2007 Page 7 of 10—Water Building Tenancy In Common Agreement i r By: IWB Representative for the Tigard Water District CERTIFICATE OF NOTARY PUBLIC STATE OF OREGON COUNTY OF�4I Signed or attested before me on ,Ta[?J, 2,� ,2007, /'/2 p_ Signa tu�of Notarial Officer OFFICIAL SEAL ft r GREER A GASTON NOTARY PUBLIC-OREGON COMMISSION NO.373020 MY COMMISSION EXPIRES OCT.10,2007 Page 8 of 10—Water Building Tenancy In Common Agreement By: Po u IWB Representative for the City of Durham CERTIFICATE OF NOTARY PUBLIC STATE OF OREGON COUNTY OF Q Signed or attested before me on 2007,by �(alf VVI � L Signature of Notarial Officer OFFICIAL SEAL �� i GREER A GASTON NOTARY PUBLIO.OREOON COMMISSION NO.373020 MY COMMISSION EXPIRES OCT.10,2007 Page 9 of 10—Water Building Tenancy In Common Agreement By: �zp,� IWB Representative for the City of King City CERTIFICATE OF NOTARY PUBLIC STATE OF OREGON COUNTY OF hfjMh 10 qj� _j {�/� ,q/ Signed or attested before me on �T JJ 1 1 ,2007,by ICh�J_b d M. Y t//h ONOTAOFFICIAL SEAL Signature of Nota rial OM RY GREER A GASTON PUBLIC-ORE13ON COMMISSION NO.373020 MY COMMISSION EXPIRES OCT.10,2007 Page 10 of 10—Water Building Tenancy In Common Agreement EXMIT A WATER BUILDING TENANTS IN COMMON AGREEMENT LEGAL DESCRIPTION OF PROPERTY DESCRIPTION PARCEL I i tract of land in Section 2, Township 2 Solth, Range 1 Vest of the; t Wil.laasm Havidien, in the City of Tigard, County of Washington and State of Oregon, described as fallen: Beginning at a point of intersection of the Southvesterly right of vay line of that certain 50 fact strip of right of way conveyed to [be Oregon blectac Railway Company by Jame R. O'Hara and Hary C. O'Hara, his wife, by dead dated January 4, 1907 end recorded February 16, 1907, an Page 40 of Book 75, Deed Records of Washington Canty, Dregon, and the neat line of the William Graham Donation Land Clain No. 39, said point being monomented by an iron pipe; thence South 43' 00' West along the vest Donation land Claim line a distance of 354.3 feet, more or leen, to the center line of County Road No. 977; thence South 45' 04' Rant allPS the center line of said County Road; a distance of 95.75 fact; thence South 0' 21' West a distance of 192.33 feet to a point, said point being mom mented by an iron Pipe; tbenca South 89' 41' past, a distance of 368.55 feet to a paint in the canter line of County Road No. 227; thenen North 0' 19' Past along the center line of County Rona No. 227 to a point on the Southwesterly right of way line of the Oregon Electric Railway Company, as aforesaid; thence North 41' 58' Test along the South— westerly right of way line as aforesaid, a distance of 291.63 feet to the point of beginning. PARCEL 11 A tract of land in Section 2, Tovnship 2 South, Range 1 Nest of the Willamette Meridian, in the City of Tigard, County of Raahington and State of Oregon, described as follove: Beginning at the point of intersection of the Southtesterly right of way line of that certain 50 foot strip of right of vay conveyed to Oregon Electric Railway Company by Jame R. O'Hara and Hatt' C. O'Hara, his wife, by dead dated Jaumrp 4, 1907, and recorded February 16, 1901, on Page 40 of book 75, Deed Records of Washington County, Oregon, and the vast limn of the William (lrabam Donation Land Claim Na. 39, said poiat_baing manuasnted by an iron pipe; thence South 43' 00' West along said vest donation laud claim line a distance of 354,3 feet, more or lees, to the center of County Road No. 997; nonce North 45' 04' 30" West along the canter line of County Road No. 997, a distance of 241.44 feet; thence North 43' 00' East 4 distance of 367.75 feet, more or less, to a point on the Page 2 F.XMIT A WATER BUILDING TENANTS IN COMMON AGREEMENT LEGAL DESCRIP'T'ION OF PROPERTY DESCRIPTION - Continued Southwesterly right of :ay line of that cart�ia 30 foot strip of right of vsy conveyed to the Oregon Blectric,Railway Company by R,udolpb Hnnriker and S. C. 8nntiker, bis wife, by deed dated December 13, 1996 and recorded February 16, 1907, on Page 39 of Book 75 Deed Records of Washington County, Otegoa, thence South 41' 50 East a distance of 242.23 feet, mom or lees, along said South— westerly right of way lies to the point of beginning. PARCEL III A tract of land is Section 2, Towoobip 2 South, Rauga 1 Haat of tho Willamette Meridian, in the City of Tigard, County of Wfasbington and State of Oregon, described as follows: BeginaUg at a point in the center of County Road north 45' 46' West 241.44 feet of the most easterly corner of that certain tract of laud conveyed to Cbarles Burnham by deed recorded in Book W, Page 162, Deed Records of Wasbington County, Oregon, said beginning point being alai) the mat westerly corner of that certain tract of land tonvayed to W. J. Karry by dead recorded in Book 146, Page 105, Deed Records; thence North 42' 19' Peet along the northwesterly line of said Kerry tract, 367.7 feet to the westerly right of way of Oregon glectric Railway Company; thence Northwesterly elan& said right of way line 60 feet to a points thence South 42' 19' Nest 374.23 feat, more or ]nes, to center line of County bad and the easterly Gine of said Basham tract; thence South 45' 461 Past 60 feet, more or lees, to the place of begiannin&. City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 i Phone: 503-639-4171 FAX TRANSMITTAL TIGARD Date September 2, 2010 Number of pages including cover sheet 3 To: 9' I`he City of King City (Fax No. 503-639-3771) El"The City of Durham (Fax No. 503-598-8595) From: Kathy Mollusky Co: City of Tigard Fax#: 503-684-8840 Ph#: 503-718-2594 SUBJECT: Intergovernmental Water Board Meeting Agenda MESSAGE: Please post the attached agenda for the upcoming meeting of the Intergovernmental Water Board. Thank you. 1:WNGTAX.DOT TRANSMISSION VERIFICATION REPORT TIME 09/02/2010 07:50 NAME COT-PW FAX 5036848840 TEL 5036848840 SER.# 000L9N215453 DATE DIME 09/02 07:49 FAX N0./NAME 5036393771 DURATION 00:00: 45 PAGE(S) 03 RESULT OK MODE STANDARD ECM TRANSMISSION VERIFICATION REPORT TIME 09/02/2010 07:52 NAME COT-PW FAX 5036848840 TEL 5036848840 SER.# 000L9N215453 DATEJIME 09/02 07: 51 FAX N0./NAME 5035988595 DURATION 00:00:45 PAGE(S) 03 RESULT OK MODE STANDARD ECM