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Authorize the City Manager to Execute an Intergovernmental Agreement with King City Regarding Water System Ownership and Water Service
Judy Lawhead, Public Works
Shall the council authorize the city manager to execute an intergovernmental agreement (IGA) with King City regarding water system ownership and water service?
STAFF RECOMMENDATION / ACTION REQUEST
Authorize the city manager to execute the agreement.
KEY FACTS AND INFORMATION SUMMARY
The council last reviewed this IGA on November 25, 2014.
The City of Tigard has provided water service to the residents of King City, Durham and the Tigard Water District since 1994. This service is provided via three intergovernmental agreements between Tigard and each of the three entities. Those agreements expire in 2018.
The Cities of Tigard, King City and Durham, along with the Tigard Water District (TWD), are members of the Intergovernmental Water Board. This board was created in the 1994 agreements. The board members have attempted to develop a replacement agreement for several years—with limited success. Subsequently, representatives from Tigard and King City chose to table the prior work and undertake a new approach which would redefine the relationship between the parties. That approach, termed the service provider model, received the general support of the Tigard City Council at its November 19, 2013, workshop meeting.
The attached King City IGA is designed to be the "successor" agreement to the original 1994 intergovernmental agreement. Key terms of the King City IGA include:
The term of the IGA is perpetual.
King City is transferring its interests in supply assets to Tigard.
King City is transferring its distribution assets to Tigard.
Tigard will thus own and operate the water system in King City as a service provider.
King City will receive a 5-percent franchise fee on annual revenues generated in King City.
Assuming both the King City and Tigard City Councils authorize this IGA, a joinder agreement to this IGA will be offered to the City of Durham. Lastly, a similar agreement, with some minor modifications, will be developed in conjunction with the TWD for council consideration.
The council could choose not to authorize the IGA and direct staff to:
Re-negotiate the terms of the IGA.
Pursue some other course of action regarding the provision of water service to King City.
COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS
Tigard City Council - Proposed Goals and Milestones
September 2013 - December 2014
Intergovernmental Water Board
Work plan for, and next governance agreements with Tigard Water District, Durham, King City (expires 2017, 2-yr notice)
DATES OF PREVIOUS COUNCIL CONSIDERATION
Was briefed on the IGA on November 25, 2014.
Was updated on the progress of the IGA on October 28, 2014.
Reviewed the IGA on November 19, 2013.
Received a memo on the development of a new agreement in its October 31, 2013, council packet.
Discussed its strategy for future water service to King City, Durham and the TWD in executive session on August 14, 2012.
Upon execution of the new agreement by both parties, Tigard should expect a minor increase in the annual remittance from water sales it pays to King City.
IGA and Exhibits
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