Clean Water Services ~ IG177006 ~ Provides For Rate Setting & Implementation Of ROW Fees AMENDMENT TO INTERGOVERNMENTAL
AGREEMENT BETWEEN CITY OF TIGARD AND
CLEAN WATER SERVICES
THIS AMENDMENT is made and entered into as of the 7th day of March,2017 between the
City of Tigard, a municipal corporation of the State of Oregon,hereinafter referred to as"City,"
and Clean Water Services, a municipal corporation and county service district,hereinafter
referred to as"District".
WHEREAS City and District entered into an Intergovernmental agreement(IGA) on
January 25;2005 (and subsequently amended on May 16, 2005,June 14,2005,March 17,2006,
July 1,2008,July 1,2009 and July 2, 2012)for the operation of sanitary sewer and surface water
facilities; and
WHEREAS the IGA allows the agreement to be amended upon approval of the
governing bodies of both parties; and
WHEREAS Oregon cities have home rule authority to assess Rights of Way (ROW)Fees
on utilities. Rights of way fees are assessed to account for the use of the City's ROW for the
delivery and conveyance of utility services,including sanitary sewer and surface water services;
and
WHEREAS the City and the District agree that is in the best interest of both parties to
strive for adequate funding for both the District and Local sanitary sewer and surface water
programs; and
WHEREAS this agreement resolves issues related to the procedures for collection and
payment of City ROW Fees on District established sanitary sewer and stormwater charges; and
WHEREAS District bills certain industrial customers directly and City has the
responsibility for billing all other customers; and
WHEREAS District uses a resolution and order to establish rates ("Resolution")as
provided in the IGA; and
WHEREAS the City has or may enact ROW Fee ordinances, and the District has
requested the City for this Amendment to the IGA to provide for administrative and procedural
governance surrounding the implementation, collection, and payment of a City ROW fee; and
WHEREAS in order to avoid any disputes regarding the administration of ROW Fees,the
City and District have agreed to this IGA Amendment to reflect the parties' agreement regarding
administrative matters related to ROW Fees.
Amendment to Intergovernmental Agreement
City of Tigard
Page 1
l��O�
NOW, THEREFORE,the parties agree, effective as of March 7,2017, as follows:
1. Definition of Terms. Wherever the following terms are used in this amendment they
shall have the following meaning unless otherwise specifically indicated by the
context in which they appear.
a. ROW Fee is defined to include the following:Franchise Fees,Right of Way
Fees,Right of Way Usage fees,Privilege Tax, or any other interchangeable
term for a City imposed charge for the use of the Rights of Way in the City.
2. City's Home Rule Authority. The District recognizes the City's home rule authority
to impose fees for use of City Rights of Way(ROW),separate from permit fees,to
enable the conveyance and provision of services. Nothing in this Amendment shall be
construed as a limitation on the District's or City's authority relative to matters
outside the subject matter of this amendment. The Parties will administer ROW fees
in the manner specified herein.
3. Amendment Intent.Notwithstanding any provision to the contrary in the IGA, City
ROW Fee ordinance, or District Resolution,this amendment is intended to represent
the City and District's agreement regarding the rate setting, implementation and
remittance of ROW Fees.Nothing in this Amendment shall modify any provisions of
the existing IGA except to the extent necessary to provide for the rate setting,
implementation, and remittance of ROW Fees as provided herein.
4. Rate Setting.
a. The existing Resolution provides for District-wide rate and a Local rate for
base and use charges. The Resolution will be amended to include a new rate
category called City ROW Fee as set forth in Exhibit C.
b. The City ROW Fee is calculated on the District-Wide rate for monthly
residential and commercial service charges.
c. The City ROW Fee is calculated on the District-Wide rate of the industrial
monthly volume services charges.
d. The City ROW Fee will be implemented upon notice by the City and the fee is
between 0 and 5%on the District-wide rate
e. For purposes of calculating the ROW Fees due to the City,ROW Fees are
applied to gross District-wide service charge revenue collected, exclusive of
the ROW Fees,for residential and commercial customers located in the City.
£ For purposes of calculating the ROW Fees to be remitted to the City,ROW
Fees are applied to gross District-wide volume service charge revenue,
exclusive of the ROW Fees,collected for industrial customers located in the
City.
g. These provisions are to ensure that the District receives its full allocation of
District-wide monthly service charges and that the City receives the ROW Fee
calculated on the District rates.
Amendment to Intergovernmental Agreement
City of Tigard
Page 2
h. Upon future annual rate adjustments,the ROW Fee will be applied after the
District annual rate adjustment to the service charges.
5. Notice of Intent to Implement ROW Fees. The City will provide CWS with at least
30 days' notice of its election to institute ROW Fees.
a. The notice will include a copy of the City's ordinance or other legal authority
establishing the ROW Fee, and the effective date of the fee.
b. The notice will indicate whether the ROW Fee will be applied to the industrial
revenue from volume monthly service charges in addition to being applied to
the District-wide monthly service revenue for residential and commercial,
which determinations will be within the City's sole discretion.
c. The notice will also include a proposed City rate schedule establishing rates to
be applied to City billed customers.
d. The City and District will within the 30-day notice period,calculate rates that
will be used to determine the City's remittance to the District based on the
new rate schedule.
6. Remittance. The City will use the new rate on the District remittance form. The
District will prepare a monthly industrial remittance form to be submitted to the City.
a. The remittance forms will include the report of all revenue billed,revenue
collected,and the calculation of the ROW Fee.
b. The City will retain the amount of the ROW Fee derived from revenues from
the monthly service rate collected from all customers billed by the City.
c. For industrial customers billed by the District,the District will remit to the
City on a monthly basis the ROW Fee derived from the monthly District-wide
volume service charges collected by the District.
d. Forms showing the methodology for implementing Remittance are attached as
Exhibit A and B.
7. City Surcharge Not Limited. Nothing in this Amendment shall limit the City's
authority to determine the Monthly Service Charge Rates for the Local Program.
8. Notice to Customers. City shall notify residential and commercial customers and
District shall notify industrial customers in substantially the manner as set forth in the
attached Exhibit D. Messaging may be directly on the bill or in some other similar,
effective manner.
9. Indemnity. The City shall indemnify and defend the District in the event of third
party lawsuits challenging the City's authority to impose the ROW Fee.
10. Licensing. If there is a licensing requirement or license fee for use of the rights of
way in the City ROW Fec ordinance,that requirement and fee are considered satisfied
Amendment to Intergovernmental Agreement
City of Tigard
Page 3
by the IGA. District is not required to furnish a certificate of insurance, if that is a
requirement of the City ROW fee ordinance.
CITY OF TIGARD CLEAN WATER SERVICES
By:
Mayor or City a g r General Manager orsi gee
(as applicable)
Attest:
APPROVED AS TO FORM
,-
City Recorder(if licable) /t�/f" G
?.
District Counsel
City Attorn (if applicable)
Amendment to Intergovernmental Agreement
City of Tigard
Page 4
EXHIBIT A-SAMPLE CITY REMITTANCE FORM
CLEAN WATER SERVICES
MONTHLY REPORT OF CITY SEWER&STORM RECEIPTS&REMITTANCES
FY 2016-17
CITY:
MONTH:
BILLING PERIOD:
is
SEWER SVCS ALLOCATION:
District Rate($22.94+$1.52) 24.46 83.567% i
City Rate($4.51+$0.30) 4.81 16.433%
ROW Fee 0.00 0.000% 1
$29.27 100.000%
Remittance to
Sewer Service Fees Collected(100%) 1,000,000.00 CWS C S Use
Local Portion(City Retains) 16.433% $ 164,332.06 1
District-wide Portion(To CWS) 83.567% A $ 835,667.92 #101.000.0000.40120.0000.0000
STORM SVCS ALLOCATION: j
District Allocation(25%) 1.94 25.032%
Local Allocation(76% 5.81 74.968%
i
ROW Fee 0.00 0.000% '
$ 7.75 100.000% I
I.
1
Surface Water Management($7.75 per ESU) i
Service Fees Collected(100%) 100,000.00
Local Portion(City Retains) 74.068% $ 74,967.74
District-wide Portion(To CWS) 25.032% B $ 25,032.26 #201:000.0000.40120.0000.0000
Sanitary Sewer SDC Charges($5,300 per EDU):
Reimbursement Portion of Sanitary SDCs($3,242.86 per EDU)
District-wide Portion(To CWS) 61.187% C $ #107.000.0000.41020,0000.0000
Improvement Portion of Sanitary SDCs($2,057.04 per EDU) i
Local Portion(City Retains) 3.983% $ y
District-wide Portion(To CWS) 34.830% D $ - #107.000.0000.41210.0000.0000 ..
Adjustments or Corrections E j
(please provide explanation)
Erosion Control Fees Collected F #201.000.0000.40290.0000.0000
Total Remittance to CWS(Sum of A through G)
Sewer Permit Numbers Issued # thru#
Number of Connection Permits Issued(in EDU's)
Total number of EDU`s Served(period end)
SWM Permit Numbers Issued # thru#
Number of SWM Connection Perils Issued(in ESU's)
Total number of ESU's Served(period end)
r..
Exhibit A to Amendment to Intergovernmental Agreement
EXHIBIT B-SAMPLE CWS INDUSTRIAL BILLING REMITTANCE FORM
I
CLEAN WATER SERVICES
MONTHLY REPORT OF DISTRICT INDUSTIRAL SEWER RECEIPTS&REMITTANCES
FY 2016-17
CITY:
MONTH:
BILLING PERIOD:
SEWER SVCS ALLOCATION:
District Rate($22.94+$1.62) 24.46 83.567%
Local-Unicorporated Wash Co.Rate($4.61+$0.30) 4.81 16.433%
City Rate 0.00 0,000°/n
City ROW Fee 0.00 0.000%
$29.27 100.000%
Remittance to
Sewer Service Fees Collected(100°/,) 1,000,000.00 CITY CWS Use
District-wide Portion(CWS Retains) 83.587% $ 835,667.92
City Portion(To City) 16.433% $ 164,332.08
City ROW Fee(To City) 0.000% $ - A $ 164,332.08 #101.000.0000.40140.0000.0000
Exhibit B to Amendment to Intergovernmental Agreement
Exhibit C—District Rates and Charges
to Cities with City Right of Way Fee APPENDIX B
DISTRICT RATES AND CHARGES TO CITIES
For the Cities of Forest Grove,Cornelius,Hillsboro,Beaverton,Tigard,Tualatin,Sherwood
Sanitary Sewer Fee&Charge
Service Charge
Monthly Sanitary Sewer Charges per DU
District Rate City Right of Way Fee(0 to 5%) Total$
Variable Fixed Variable Fixed
Base N/A $22.94 N/A $0.00 to 1.15 $22.94 to 24,09
Use $1.52/ccf avg winter N/A $0.00 to 0.08/ccf avg N/A $1.52 to 1.60/ccf avg
water usage winter water usage winter water usage
Storm and Surface Water Fee and&Charge
Service Charge
Monthly Storm and Surface Water Service Charges per DU
District Rate City Right of Way Fee(0 to 5%) Total$
Base 1$1.94 $0.00 to 0.10 $1.94 to 2.04
Rates and charges for the cities of Banks,Durham,Gaston,King City and North Plains will be collected and allocated according to the
individual Intergovernmental Agreements.
Rates and Charges Resolution and Order July 1,2016—June 30,2017
Appendix a
Page I
Exhibit C to Amendment to Intergovernmental Agreement
EXHIBIT D
BILLING NOTIFICATION LANGUAGE—RESIDENTIAL AND COMA ERICAL
CUSTOMERS:
Effective ,2017,the Sanitary Sewer and Stormwater bill includes a new rate
calculated to include a�%City of Rights of Way Fee.
BILLING NOTIFICATION LANGUAGE—INDUSTIAL CUSTOMERS:
Effective ,2017 the Sanitary Sewer and Stormwater bill includes a new rate
calculated to include a_%City of Rights of Way Fee.The fee is calculated as_
percent of Sanitary Sewer volume charge and Stormwater fee and is identified on your bill as
"City of Rights of Way Fee". CWS will collect and remit the money to
[name of City].
Exhibit D to Amendment to Intergovernmental Agreement