JOINT FUNDING AGREEMENT
IMPLEMENTATION PLAN FOR FORMATION OF A BULL RUN REGIONAL DRINKING WATER AGENCY
This agreement, dated March 15, 2002, is between the City of Beaverton, City of Gresham, City of Portland, City of Tigard, City of Tualatin, formed by the authority of ORS; Clackamas River Water, Powell Valley Road Water District, Raleigh Water District, Tualatin Valley Water District, West Slope Water District, formed by authority of ORS 264 (Districts); Clean Water Services, formed by authority of ORS 451 (County Service Districts); Sunrise Water Authority, formed by authority of ORS 450 (Water Authorities), Rockwood Water People’s Utility District, formed by authority of ORS 261 (People’s Utility Districts), METRO, formed by authority of ORS 268 (Regional Service Districts), collectively referred to as “Parties” and individually as “Party.”
RECITALS
1. There are 38 providers of drinking water in the counties of Multnomah, Clackamas, and Washington.
2. Fourteen public agencies came together in 2001 to study the preliminary feasibility of identifying a more effective and efficient form of governance for the supply and transmission of drinking water within the three counties.
3. Through the work completed in Phase I of the Regional Drinking Water Supply Initiative, several of the Parties agreed that there may be more effective and efficient methods of governance in the Multnomah, Clackamas and Washington counties for the supply and transmission of treated drinking water to the residential, commercial, industrial and institutional sectors in the tri-county area.
4. The undersigned governments now wish to enter into an agreement (this Agreement) under which the Parties shall jointly fund the second phase of this work to develop the implementation requirements for forming a new water supply and transmission agency.
5. The Parties, hereto have the authority to enter into this Agreement pursuant to their applicable charters and Oregon Revised Statutes sections 190.003 through 190.030.
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TERMS AND CONDITIONS
1. Description of the Project
The project to be funded pursuant to this Agreement shall be known as the “Implementation Plan for Formation of a Bull Run Regional Drinking Water Agency" (the Plan). The Plan shall be prepared jointly by the Parties’ staffs and consultants hired by the Parties. The Plan shall include:
• An in-depth examination of the legal, financial and engineering issues related to forming and operating a new drinking water agency.
• Evaluation of alternative approaches for establishing policy direction, decision-making authority, asset ownership, water rights and legal authority of a new agency, as well as other key issues.
• Specific recommendations for the governance structure and administrative mechanisms for the new agency. Recommendations will include such issues as agency structure and type, governing body membership, voting issues, asset transfer procedures, mechanisms for incorporating new members, financing mechanism for future improvements, rates and charges, and ancillary issues.
• An implementation plan, including the steps, costs, public involvement strategy and schedule for the formation of a new agency.
• Development of a model agreement with proposed rates and charges to be presented to elected officials of the participating agencies and to the public.
• The implementation plan will address issues of equity of supply and cost of service.
• The timeline for completion of this phase will be included in the detailed scope of work for the project.
2. Plan Assumptions
In examining the issues identified above and based on the results of Phase I of the Regional Drinking Water Supply Initiative, the Plan shall assume that:
• The Parties, or any of them, may become members of the new water agency.
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• The water sources to be used and managed by the new agency include the Bull Run Watershed and the Columbia South Shore Wellfield.
• The members would obtain some or all of their water from the new Bull Run Regional Drinking Water Agency.
• The new Bull Run Regional Drinking Water Agency would have the flexibility to allow members to place other functional aspects of their water utility operations within the new agency, if desired. Such aspects might include laboratories, operations centers, distribution systems, business services, or any other aspect of their operations that were water-related or ancillary to water services. A financial mechanism would be created in the structure of the new agency that could isolate costs and benefits of services other than supply, treatment and transmission, and apportion those costs to those ratepayers receiving the service.
• The new Bull Run Regional Drinking Water Agency may be formed under an ORS 190 agreement, subject to additional information identified during development of the Plan.
• The new Bull Run Regional Drinking Water Agency will offer wholesale contracts to other providers of water in the Portland metropolitan area, to the extent water is available, and such contracts are approved by the decision-making authority of the new agency.
3. Cost Share
The costs for development of the Plan shall be shared equally by the Parties. The estimated total cost of the Plan is not to exceed $200,000. Each Party will share equally in the cost of this Agreement. In the event Parties agree to increase the scope of this Plan there will be a corresponding increase in the cost of the Plan to the Parties. The Parties understand that the Plan is a second step in addressing the feasibility of forming a Bull Run Regional Drinking Water Agency and that participation in funding the Plan does not assume that the Parties will necessarily be the members of a new agency.
4. Project Management
a. Managing Agency
The Parties agree that the Sunrise Water Authority shall be the Managing Agency for this Agreement. With participation from the Technical Advisory Committee, the Managing Agency will seek, retain and manage any contracted services as may, from
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time to time, be deemed necessary to carry out the work of this Agreement. The
Managing Agency will seek and retain such services through its normal business practices. The Managing Agency shall pay such bills and invoices as may be deemed proper and appropriate and upon payment thereof shall deliver invoices to the Parties as set forth in Section 3 above. Each Party shall pay such invoice(s) within thirty (30) days of receipt and shall pay such invoice(s) even if there is a question to resolve with the Managing Agency. All questions that cannot be resolved between a party and the Managing Agency shall be submitted to all of the Parties to this Agreement for final resolution.
b. Policy Steering Committee
The designated elected officials of the Parties shall form a Policy Steering Committee. The Policy Steering Committee, together with the Technical Advisory Committee will identify policy issues that need administrative and technical analysis. The Policy Steering Committee will provide guidance to the Technical Advisory Committee on issues related to the formation of the new Bull Run Regional Drinking Water agency.
c. Technical Advisory Committee
The water administrators or designees of the Parties shall form a Technical Advisory Committee. The Technical Advisory Committee shall manage the work program and develop an agreement and implementation plan for the creation of the new Bull Run Regional Drinking Water Agency.
The Committee members will report to their respective governing bodies on the progress of the work undertaken in this Plan, and make final recommendations to their respective governing bodies.
5. Voluntary Termination of Party
Except as otherwise indicated in this section, no Party may terminate its rights and obligations under this Agreement until the Plan is completed.
Parties may terminate their participation in this Agreement at any time although
the terminating Party or Parties shall remain liable for full funding of the Party’s share
of costs per Section 3 of this Agreement.
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6. Amendments
This Agreement may be amended only if each and every Party concurs. Such amendment must be in writing and signed by authorized representatives of all Parties.
7. Assignment
No Party to this Agreement shall have the right to assign its interest in this agreement (or any portion thereof) without the prior written consent of all other Parties.
8. Severability
In case one or more of the provisions contained herein should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
9. Notices
Any notice deemed necessary shall be given in writing to the designees of each Party by hand delivery; by United States Mail, first class postage prepaid, or by e-mail if return is acknowledged.
10. Attorney Fees
If any dispute should arise under this Agreement the prevailing Party shall be entitled to such reasonable attorney fees as may be awarded by any trial court or arbitrator and including any appeal therefrom.
11. Binding Effect and Indemnity
Except for negligent acts, all acts undertaken in the course of this Agreement, by any authorized Party, shall be deemed to be the acts of all Parties. For all other acts or omissions each Party hereto agrees to indemnify the other, their governing bodies, officers, agents, employees and consultants from and against all claims, demands, penalties and causes of action of any kind or character, including the cost of defense and attorney fees, arising in favor of any person or entity on account of personal injury, death or damage to property resulting from the solely negligent acts or omissions of the entity or one under its control.
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12. Authorship; Legal Review
This Agreement shall not be construed for or against any Party by reason of the authorship or alleged authorship of any provision. Each Party is encouraged to obtain the advice of legal counsel before signing this agreement.
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13. Signature Page
CITY OF PORTLAND
By:
Date:
CITY OF BEAVERTON
By:_________________________________
Date:_______________________________
CITY OF GRESHAM
By:_________________________________
Date:_______________________________
CITY OF TIGARD
By:_________________________________
Date:_______________________________
CITY OF TUALATIN
By:_________________________________
Date:_______________________________
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CLACKAMAS RIVER WATER
By:________________________________
Date:_______________________________
POWELL VALLEY ROAD WATER DISTRICT
By:__________________________________
Date:_________________________________
RALEIGH WATER DISTRICT
By:__________________________________
Date:_________________________________
TUALATIN VALLEY WATER DISTRICT
By:__________________________________
Date:_________________________________
WEST SLOPE WATER DISTRICT
By:__________________________________
Date:_________________________________
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CLEAN WATER SERVICES
By:__________________________________
Date:_________________________________
SUNRISE WATER AUTHORITY
By:__________________________________
Date:_________________________________
ROCKWOOD WATER PEOPLE’S UTILITY DISTRICT
By:__________________________________
Date:________________________________
METRO
By:__________________________________
Date:_________________________________
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