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2013-1178-Order No. 2013-044 Recorded 9/30/2013DESCHUTES COUNTY OFFICIAL RECORDS X013`1118 NANCY BLANKENSHIP, COUNTY CLERK REVIEWED COMMISSIONERS' JOURNAL 09/30/4013 01;11;30 PM LEGAL C UNSEL VIII VIII IIIIiII 11111111 I III 20s -ss a BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ALSO ACTING AS THE BOARD OF TRUSTEES FOR THE LA PINE WATER DISTRICT An. Order Declaring the Board of County Commissioners to be the Board of Trustees for the * ORDER NO. 2013-044 La Pine Water .District, Initiating and Finalizing the Dissolution of the District WHEREAS, on or about June 27, 2012, the City of La Pine (the "City") and the La Pine Water District (the "District") entered into a Master Withdrawal and Transfer Agreement ("Agreement"), attached as Exhibit A and incorporated by reference herein, to facilitate the City's withdrawal of the District's territory pursuant to ORS 222.520; and WHEREAS, on July 1, 2012, pursuant to the Agreement and ORS 222.520, the City withdrew the District territory that existed within the City's boundaries; and WHEREAS, after the City withdrew the District territory that existed within the City's boundaries, only 2.6 uninhabited acres of the District remain and, thus, pursuant to ORS 264.410, there are no qualified District board members or voters; and WHEREAS, pursuant to ORS 198.920(3), if there are no qualified District board members, "the county board shall act as or appoint a board of trustees to act in behalf of the district" for purposes of dissolution; and WHEREAS, as of July 1, 2012, pursuant to the Agreement, all District operations, including the provision of water services, were transferred to, and assumed and performed by, the City; and WHEREAS, pursuant to the Agreement, for the interim period beginning on July 1, 2012 and ending on the date upon which the transfer and assignment of one or more United States Department of Agriculture - Rural Development loans (the "Loans") to the City occurs in connection with the City's withdrawal of District's territory under ORS 222.520, the District granted the City full right, power, and authority necessary or appropriate to operate the water system, including, without limitation, the right to operate and control the District's assets; and WHEREAS, pursuant to the Agreement, all of the District's real and personal property will be conveyed, transferred, and assigned to the City on the date upon which the transfer and assignment of the Loans to the City occurs, which in no event may be prior to the date USDA consents to such transfer and assignment; and WHEREAS, based on the foregoing, the Board of County Commissioners (the "BOCC") finds that it is in the best interest of the public to act as the board of trustees rather than appoint a separate board of trustees to act on behalf of the District; and WHEREAS, pursuant to District Resolution No. 2012-8, attached as Exhibit B and incorporated by reference herein, the District approved the Agreement and the dissolution of the District in accordance with ORS 198.920; and PAGE I OF 3- ORDER N0.2013-044 WHEREAS, in accordance with ORS 198.925, the Agreement included the requirements of a proposed plan of dissolution and liquidation, but was not filed in the office of the Deschutes County Clerk ("County Clerk") within 30 days after the District initiated the dissolution proceeding; and WHEREAS, pursuant to ORS 198.925, the District's description of outstanding indebtedness, real and personal property, and other assets is included in Exhibit A; and WHEREAS, no uncollected taxes, assessments, or charges levied by the District exist; and WHEREAS, the estimated cost for dissolving the District, which process will include approximately 10 hours of Deschutes County Legal Counsel time in preparing dissolution and other necessary transfer documents, time of the BOCC and its staff to conduct the public meetings to approve this document and other necessary dissolution and transfer documents, will likely be less than $5,000; and WHEREAS, pursuant to ORS 1.98.940, the BOCC shall declare the District dissolved without an election if the BOCC finds that dissolution is in the interest of the people of the county and the territory within the affected district is uninhabited; and WHEREAS, this order and Exhibits A and B provide the necessary findings required by statute to dissolve the .District; and WHEREAS, because the City is and will be providing the District's functions for the territory within the City limits and no services were provided to the remaining 2.6 acre parcel described above, the City shall retain the books and records of the District rather than depositing them with the County Clerk; and WHEREAS, the county board of trustees for the District is needed to sign documents for the transfer and conveyance of all assets and liabilities of the District to the City, including but not limited to the Loans, as part of the dissolution and winding up of the affairs of the District; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ALSO ACTING AS THE BOARD OF TRUSTEES FOR THE LA PINE WATER DISTRICT HEREBY ORDERS as follows: Section 1. The BOCC shall act as the District's board of trustees for purposes of initiating this dissolution, transferring and conveying all the District assets to the City, and taking all other actions necessary to wind up the affairs of the District prior to and after the dissolution of the District; and Section 2. This order and Exhibits A and B are the dissolution plan for the District. Section 3. Within seven days of the BOCC signatures on this document, the Deschutes County Legal Counsel shall file a copy of this order with the County Clerk as the dissolution plan for the District. PAGE 2 OF 3- ORDER No. 2013-044 Section 4. Upon filing of the dissolution plan with the County Clerk, the District is dissolved. Dated this0 f of September, 2013. ATTEST: &W'L~' 16X~ Recording Secretary BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ALAN UNGER, Chair 4t& - TAMMY BANEY. Vice Chair ANTHONY DeBONE, Commissioner STATE OF OREGON ) ss. County of Deschutes ) Signed and sworn to (or affirmed) before me, a Notary Public, by ALAN UNGER, , ANTHONY DEBONE, the above-named Board of County Commissioners of Deschutes County, Oregon, also acting as the board of trustees for the La Pine Water District, on behalf of Deschutes County, Oregon and the La Pine Water District. DATED this day of , 2013. 1d) . Notary Public for Oregon My Commission Expires: . ~i 4 !2 OFFICIAL SEAL P~';:I~ MIF LEE BAKER NO~ A:'O`v PUBLIC-OREGON w 0 ra` ASSM NO. 465987 CQNIW 'PE.'S FE8R _AFIY 23j is PAGE 3 OF 3- ORDER N0.2013-044 MASTER WITHDRAWAL AND TRANSFER AGREEMENT This Master Withdrawal and Transfer Agreement (this "Agreement") is entered into and made effective on June 27, 2012 (the "Effective Date") by and between the La Pine Water District ("District"), whose address is PO Box 2460, La Pine, Oregon 97739, and the City of La Pine ("City"), whose address is PO Box 3055, La Pine, Oregon 97739, RECITALS: A. City is causing the withdrawal of District's territory under ORS 222.520. As part of the Withdrawal, (a) District will transfer its water mains, service installations, structures, facilities, improvements, assets, and other property to City, and (b) City will assume certain District liabilities and obligations. District is the recipient of one or more United States Department of Agriculture - Rural Development ("USDA") loans, which loans will be transferred and assigned by District and assumed by City in connection with the Withdrawal, C. District supports City's withdrawal of District's territory. District is willing to exercise its best efforts to assist and cooperate with the Withdrawal, D. The parties desire to enter into this Agreement in order to facilitate the Withdrawal and ensure the most effective, efficient, and seamless transition of District's assets, liabilities, and operations to City. AGREEMENT: NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: Definitions. Except as otherwise defined in this Agreement, capitalized terms contained in this Agreement have the meanings assigned to them in the attached Appendix A. 2. Withdrawal under ORS 222.520. Subject to the terms and conditions contained in this Agreement, pursuant to ORS 222.465, the Withdrawal will occur and be effective on the Withdrawal Date. District will take all necessary and appropriate actions to ensure that the Withdrawal is consummated and effective on the Withdrawal Date, including, without limitation, taking all necessary and appropriate actions to cause the transfer and assignment of the Loans to City on or before the Withdrawal Date. I - MASTER WITHDRAWAL AND TRANSFER AGREEMENT tRde,103-044 &?Yta0 Page 1 District Operations. Subject to the terms and conditions contained in this Agreement, as of the Withdrawal Date, all District operations will be transferred to, and assumed and performed by, City. Without otherwise limiting the generality of the immediately preceding sentence, as of the Withdrawal Date, City will perform the following District operations: (a) City will provide those water services provided by District as of the Effective Date within City's boundaries; (b) City will provide all administrative services, including the preparation of an annual budget, audits, accounts payable, accounts receivable, billing, purchasing, and equipment acquisition; and (c) to the extent City determines necessary or appropriate, City will perform, or cause to be performed, all maintenance, capital acquisitions, improvements, and/or other services to be performed. 4. Transfer of Assets. Subject to the terms and conditions contained in this Agreement, as of the Transfer Date, District conveys, transfers, and assigns to City all of District's real and personal property, whether tangible or intangible, wherever located, including, without limitation, the following. (a) District's real property assets, including, without limitation, the real property assets identified on the attached Schedule 4 a together with all fixtures and improvements located thereon; (b) District's water mains, wells, pump stations, service installations, reservoirs, structures, facilities, improvements, and any other property that may be necessary for the operation of the Water System; (c) District's tangible personal property assets; (d) District's accounts receivable; (e) District's insurance policies and intellectual property assets, including, without limitation, any intellectual property assets listed on the attached Schedule 4(e); (f) District's cash, accounts, certificates of deposit, rights to prepaid expenses, deposits, refunds, and offsets (provided, however, City acknowledges that some transferred funds have statutory or contractual restrictions concerning their use and City will abide by those requirements); (g) District's rights under any grants, easements, and/or contracts to which District is a party (the "Contract(s)"), including, without limitation, District's rights under the Loans and those grants, easements, and contracts identified on the attached Schedule 4(g), but excluding any collective bargaining agreement(s) to which District may be a party; (h) District's licenses, permits (including, without limitation, all Water Permits), registrations, and other governmental authorizations, together with all applications for governmental authorizations; 2 -MASTER OWITHDRAWAL AND TRANSFER AGREEMENT i~ xn blt A to Urp~rL'EM 3-044 Page 2 (i) District's data and records containing information related to District and/or the Water System, including, without limitation, all books of account and records, customer and supplier lists, financial and technical information, drawings, specifications, techniques, programs, systems, processes, and computer software; (j) District's goodwill, internet domain names, including, without limitation, those listed on the attached Schedule 4e _j, telephone numbers, fax numbers, email addresses, including, without limitation, those listed on the attached Schedule 4(e), and other similar items, together with associated listings and registrations; and (k) all claims, actions, proceedings, damages, liabilities, liens, and expenses of every kind that District may have against and/or be able to recover from any person, whether known or unknown, including, without limitation, all insurance claims. 5. Assumption of Obligations. Subject to the terms and conditions contained in this Agreement, as of the Transfer Date, City will assume any and all District liabilities and obligations arising on or before the Transfer Date, including, without limitation, the following: (a) District's liabilities and obligations to contractors and customers incurred in the ordinary course of District's business; and (b) District's liabilities and obligations arising out of or under the Contracts, including, without limitation, the Loans, 6. E=xcluded. Liabilities and Obligations. Notwithstanding anything contained in this Agreement to the contrary, City will not assume nor be responsible for any District liabilities and/or obligations arising out of or related to, whether known or unknown, the following: (a) any District employee, whether or not the employee is hired by City, arising on or before the Withdrawal Date; (b) any union representing District's employees; and/or (c) any collective bargaining obligations and/or agreements to which District may be a party. Interim Period. If applicable, for the period beginning on the Withdrawal Date and ending on the Assignment Date, District grants City full right, power, and authority necessary or appropriate to operate the Water System, including, without limitation, the right to operate and control the Assets. If necessary or, appropriate, District may retain a cash reserve account in an amount necessary to cover any checks written by District prior to the Withdrawal Date. The balance of the reserve account, if any, will be transferred to City immediately after the checks have cleared the reserve account. S. Water Permits. Without otherwise limiting the generality of Section 4, above, District will transfer, assign, and convey to City as of the Transfer Date any and all rights and interests District 3 MASTER WITHDRAWAL AND TRANSFER AGREEMENT i ~iPA49930e'M3-044 Page 3 has or may have in any water rights, applications, and/or permits related to or concerning the Water System, including, without limitation, the following. (a) Permit Application No. G-17422. Oregon Water Resources Department ("OWRD") Groundwater Permit Application No. G-17422 provides for the year-round municipal use of two District wells, Well No. 1 and Well No. 2, located in township 22 south, range 11 east, section 18, northwest-southeast quarter-quarter; Well No. 1 is 1,240 feet south and 804 feet east from center quarter-corner; Well No. 2 is 1,143 feet south and 1,085 feet east from center quarter-corner. The allowable pumping rate is 1.4 cubic feet per second ("cfs"), approximately 630 gallons per minute ("gpm"), with a maximum annual volume of 1,013.0 acre-feet of water. (b) Permit No. G-13444. OWRD Groundwater Permit No. G-13444 provides for the year-round quasi-municipal use of two District wells, Well No. 1 and Well No. 2, located in township 22 south, range? 11 east, section 18, northwest-southeast quarter-quarter (W.M.). The permit's stated allowable pumping rate is 2.23 cfs, approximately 1,000 gpm, without a maximum annual volume of water stated on the permit. The permit is currently limited by the OWRD to 1.52 cfs, approximately 680 gpm. (c) Permit No. G-12545, OWRD Groundwater Permit No. G-12545 provides for the use of two District wells at a rate of 0.22 cfs, approximately 98 gpm, for the irrigation of not more than 75 acres of land. The wells are located in township 22 south, range 10 east; Well No. 1 is in section 11, northwest-southwest quarter-quarter - 1,860 feet north and 275 feet west; Well No. 2 is in section 12, 2,550 feet north and 700 feet east; both wells from the southeast corner of section 11. The annual volume is limited to three feet per acre of land (or 225.0 acre-feet), The period of use is March 1 through October 31 of each year. 9, Employee Transfer. Subject to the terms and conditions contained in this Agreement, on the Withdrawal bate the employment of all District employees will be transferred to City as may be required under ORS 236.605 et seq., without further civil service examination. A list of the transferring District employees is attached hereto as.Schedule 9. Subject to the terms and conditions contained in this Agreement and ORS 236.605 et seq., City and District agree to the following concerning the transfer of District's employees; (a) Each District employee will be transferred to the employment of City as an at- will employee (and placed on City's employee roster) effective as of the Withdrawal Date; (b) Each District employee will be placed in a position comparable to the position held by the employee immediately prior to the Withdrawal Date, if one exists, as reasonably determined by City. If no comparable position exists, no lesser position is available, and no position otherwise exists with City, the employee will be listed as a regular laid-off employee in accordance with ORS 236.630; 4 -MASTER WITHDRAWAL AND TRANSFER AGREEMENT W10, IN3PVPH§ s-044 Page 4 (c) Each District employee will retain the seniority he or she accrued under the employee's employment with District, but no regular City employee will be demoted or laid off by reason of that seniority at the time of transfer; (d) Each District employee will receive the same salary paid by District to the employee immediately prior to the Withdrawal Date for the employee's first 12 months of employment with City. After the employee's first 12 months of employment with City, the employee will be placed at the closest salary for his or her position, as designated by City's then existing salary schedule; (e) Each District employee will receive the same privileges, including benefits, hours, and conditions of employment, and be subject to the same rules, regulations, and policies applicable to other City employees, Including, without limitation, City's policy not to cash out accrued paid leave upon an employee's separation of employment; (f) Each District employee will be placed under City's health insurance plan applicable to other City employees. There will be no waiting period for coverage of any pre-existing conditions; (g) In accordance with ORS 236.620, each District employee may, at the employee's option, elect to continue for 12 months under District's retirement system in which the employee participated, In the alternative, if the employee qualifies, the employee may elect within 30 days after the date of transfer to participate in the retirement system available to City employees; (h) At the time of transfer, District employees may elect to transfer any accrued sick leave and retain up to a maximum of 80 hours of vacation leave. No additional leave will be transferred to City. At the time of transfer, District will pay to City for each District employee electing to transfer accrued leave a sum equal to the number of accrued leave hours transferred by the employee multiplied by that employee's regular hourly rate of pay, After the transfer, City will grant leaves according to its rules and/or applicable bargaining agreements concerning the use of leave; and (i) District will liquidate any accrued compensatory time as of June 30, 2012 consistent with any applicable laws and/or collective bargaining agreements at the time of transfer. District will transfer each District employee's employment records with District to City on the Withdrawal Date. 10, Operations Manager. District acknowledges the following concerning District's Operations Manager position: (a) District's Operations Manager position, which is held by Donna Zigler as of the Effective Date, will not exist following the Withdrawal as the position's duties and responsibilities are duplicative of and/or will be absorbed by other City staff as part of the Withdrawal. MASTER WITHDRAWAL AND TRANSFER AGREEMENT Page 5 (b) City has no position comparable to the position(s) held by Ms. Zigler with District nor does City have an available lesser position or any other position for Ms. Zigler. (c) In accordance with ORS 236,630, upon Ms. Zigler's transfer of employment on the Withdrawal Date, Ms. Zigler will be listed as a regular laid-off employee with priority of appointment over other persons eligible for any position for which Ms. Zigler is qualified, subject to any applicable collective bargaining agreement. 11, Union Activities, As of the Effective Date, District is under collective bargaining obligations concerning an employee union pursuant to the Public Employees Collective Bargaining Act. City is not obligated to assurne or otherwise be bound by any collective bargaining agreement negotiated or ratified by District nor is City obligated to offer contract terms that are similar to those offered or agreed to by District. 12. District Dissolution. District will initiate its dissolution in accordance with ORS 198.920 (and/or any other applicable laws) prior to the Withdrawal Date. Withdrawal will result in no qualified District board members. District will provide the Deschutes County Board of County Commissioners a resolution requesting dissolution in accordance with applicable Oregon law. 13. District Representations and Warranties. District represents and warrants to City as follows: (a) District is duly organized and validly existing under the laws of the State of Oregon, District has full power and authority to sign and deliver this Agreement and to perform all of District's obligations under this Agreement. District has full power and authority to conduct District's business as it is now being conducted, to own and use the Assets, and to perform all of District's obligations under all Contracts. This Agreement is the legal, valid, and binding obligation of District, enforceable against District in accordance with its terms. (b) The signing and delivery of this Agreement by District and the performance by District of all of District's obligations under this Agreement will not (i) conflict with District's governing documents, (ii) breach any agreement to which District is a party, or give any person the right to accelerate any obligation of District, (iii) violate any law, judgment, or order to which District is subject, and/or (iv) require the consent, authorization, or approval of any person. (c) To the best of District's knowledge, the books of account and records of District (i) are complete and accurate in all material respects, (ii) represent actual, bona fide transactions, and (iii) have been maintained in accordance with sound business practices, including the maintenance of an adequate system of internal accounting controls. (d) To the best of District's knowledge, District has no liabilities of any kind, whether known or unknown, fixed or contingent, disputed or undisputed, matured or unmatured, 6- MASTER WITHDRAWAL AND TRANSFER AGREEMENT 1~42AO FIG% VMI3-044 Page 6 liquidated or unliquidated, or secured or unsecured, except for (i) liabilities incurred in the ordinary course of District's business, and (ii) liabilities under Contracts that do not arise out of or result from a breach by District. District has complied with all applicable laws during the three-year period before the Effective Date, 14. City___Rpresentations and Warranties. City represents and warrants to District as follows: (a) City is duly organized and validly existing under the laws of the State of Oregon. City has full power and authority to sign and deliver this Agreement and to perform all of City's obligations under this Agreement, This Agreement is the legal, valid, and binding obligation of City, enforceable against City in accordance with its terms. (b) The signing and delivery of this Agreement by City and the performance by City of all of City's obligations under this Agreement will not (i) conflict with City's governing documents, (ii) breach any agreement to which City is a party, or give any person the right to accelerate any obligation of City, (iii) violate any law, judgment, or order to which City is subject, or (iv) require the consent, authorization, or approval of any person. 15. City Indemnification. Subject to the terms and conditions contained in this Agreement, if and to the extent riot covered by District's insurance, City will defend, indemnify, and hold each District director, officer, and employee harmless for, from, and against any and all claims brought against him or tier as District director, officer, or employee concerning any action taken by such person within the scope of the person's employment and/or authority with District provided the act or omission which is subject to the claim was made in good faith and not as a result of gross negligence. 16. District Indemnification. To the fullest extent permitted by applicable law, District releases and will defend, indemnify, and hold City and City's Representatives harmless for, from, and against any and all claims resulting from, or arising out of, whether directly or indirectly, the following: (a) District's ownership, use, maintenance, leasing, and/or operation of the Water System and/or Assets, including, without limitation, any liabilities arising out of or concerning District's employees; and/or (b) District's breach and/or failure to perform any District representation, warranty, covenant, and/or obligation contained in this Agreement. The indemnification covenants contained in this Section 16 will survive the termination of this Agreement. 17. Miscellaneous, 17.1 Grant of Authority. Notwithstanding anything contained in this Agreement to the contrary, District makes, constitutes, and appoints City and City's Representatives with all power and authority necessary or desirable to effectuate the Withdrawal and the transfer and assignment of District's operations, the Assets, the Contracts, liabilities, and obligations to City, including, without 7 --MASTER WITHDRAWAL AND TRANSFER AGREEMENT 0_0iUtW7d0ik69f N$h-044 Page 7 limitation, executing and acknowledging any and all documents, instruments, and agreements City deems necessary or appropriate. 17.2 Severability, Assignment, and Binding Eff_ect. Each provision contained in this Agreement will be treated as a separate and independent provision. The unenforceability of any one provision will in no way impair the enforceability of any other provision contained herein. Any reading of a provision causing unenforceability will yield to a construction permitting enforcement to the maximum extent permitted by applicable law, District will not assign this Agreement to any person without City's prior written consent. Subject to the immediately preceding sentence, this Agreement will be binding on the parties and their respective heirs, personal representatives, successors, and permitted assigns, and will inure to their benefit. This Agreement may be amended only by a written agreement signed by each party. The parties do not intend to confer any right or remedy on any third pa rty. 173 Attorney Fees. With respect to any dispute relating to this Agreement, or if a suit, action, arbitration, or other proceeding of any nature whatsoever is instituted to interpret or enforce the provisions of this Agreement, including, without limitation, any proceeding under the U.S. Bankruptcy Code and involving issues peculiar to federal bankruptcy law or any action, suit, arbitratlon, or proceeding seeking a declaration of rights or rescission, the prevailing party will be entitled to recover from the losing party its reasonable attorney fees, paralegal fees, expert fees, and all other fees, costs, and expenses incurred in connection therewith, as determined by the judge or arbitrator at trial, arbitration, or other proceeding, or on any appeal or review, in addition to all other amounts provided by law. 1.7.4 Governing Law; Venue. This Agreement is governed by the laws of the State of Oregon, without giving effect to any conflict-of-law principle that would result in the laws of any other jurisdiction governing this Agreement. Any action or proceeding arising out of this Agreement will be litigated in courts located in Deschutes County, Oregon. Each party consents and submits to the jurisdiction of any local, state, or federal court located in Deschutes County, Oregon. 17,5 Attachments and Further Assurances. Any exhibits, schedules, instruments, documents, and other attachments referenced in this Agreement are part of this Agreement. The parties will sign other documents and take other actions reasonably necessary to further effect and evidence the Withdrawal and this Agreement, including, without limitation, any necessary or appropriate bills of sale, deeds, and/or any other instruments. Time is of the essence with respect to District's performance of its obligations under this Agreement. 17.6 Notices. All notices or other communications required or permitted by this Agreement must be in writing, must be delivered to the parties at the addresses set forth above, or any other address that a party may designate by notice to the other party, and are considered delivered upon actual receipt if delivered personally, by fax, or by a nationally recognized overnight delivery 8 MASTER WITHDRAWAL AND TRANSFER AGREEMENT Page 8 service, or at the end of the third business day after the date of deposit if deposited in the United States mail, postage pre-paid, certified, return receipt requested, 17.7 Waiver and Entire Agreement. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing by City and District, No waiver of either party at any tirne of the breach of, or lack of compliance with, any conditions or provisions of this Agreement will be deemed a waiver of other provisions or conditions hereof. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter of this Agreement and contains all of the terms and conditions of the parties' agreement and supersedes any other oral or written negotiations, discussions, representations, or agreements. 17.8 Person and Inter retation. For purposes of this Agreement, the term "person" means any natural person, corporation, limited liability company, partnership, joint venture, firm, association, trust, unincorporated organization, government or governmental agency or political subdivision, or any other entity. All pronouns contained herein and any variations thereof will be deemed to refer to the masculine, feminine, or neutral, singular or plural, as the identity of the parties may require. The singular includes the plural and the plural includes the singular. The word "or" is not exclusive. The words "include," "includes," and "including" are not limiting. The titles, captions, or headings of the sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. if the date for performance of an obligation or delivery of any notice hereunder falls on a day other than a business day, the date for such performance or delivery of such notice will be postponed until the next ensuing business day. For purposes of this Agreement, a "business day" means a normal working day (i.e., Monday through Friday of each calendar week, exclusive of federal and state holidays and one day following each of Thanksgiving, Christmas, and New Year's Day). 17.9 Execution/Counterparts. The parties may execute this Agreement in separate counterparts, each of which when executed and delivered will be an original, but all of which together will constitute one and the same instrument. Facsimile or email transmission of any signed original document will be the same as delivery of an original. At the request of either party, the parties will confirm facsimile or email transmitted signatures by signing and delivering an original document. [end of agreement - signature page immediately follows] 9-MASTER WITHDRAWAL AND TRANSFER AGREEMENT fix btAtooOldengQt;-044 Page 9 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and made effective for all purposes as of the Effective Date. WATER DISTRICT: La Pine Water District an Oregon special district CITY: City of La Pine an Oregon municipal oration By: dent YVQ By:'Ken Mulenex, Mayor 10- MASTER WITH URAWAL AND TRANSFER AGREEMENT (KQJit0Aq&C &4'M)3-044 Page 10 Appendix A Definitions "Asset(s)" means those District assets described under Section 4 "Assignment Date" means the date upon which the transfer and assignment of the Loans to City occurs, which in no event may be prior to the date USDA consents to such transfer and assignment. "City Representative(s)" means each present and future City officer, employee, representative, contractor, and/or agent. "Contract(s)" means those Contracts identified under Section 4(g), "Loan(s)" means the two loans District has outstanding with the USDA, namely (a) that certain Water Revenue Bond No, 1 dated November 24, 2003 in the principal amount of $2,826,500.00, and (b) that certain Water Revenue Bond No. 2 dated February 24, 2005 in the principal amount of $325,000,00. "Transfer Date" means the later of the Withdrawal Date or the Assignment Date. "Water Permit(s)" means those water applications, rights, and/or permits described in Section 8. "Water System" means the water control and/or supply system operated by District on the Effective Date. "Withdrawal" means City's withdrawal of District's territory under ORS 222.520. "Withdrawal Date" means 12:00 a,m, on July 1, 2012. APPENDIX A (14323.087.00169496;8) Exhibit A to order 2013-044 Page 11 SCHEDULE 4(a) Real Property Parcel I, Government Lot 124, located in the Southwest quarter of the Northeast quarter (SW1/2NE1/4) of Section 14, Township 22 South, Range 10 East of the Willamette Meridian, Deschutes County, Oregon. (51490 Hinkle Way, La Pine, Oregon 97739) Parcel II: Parcel 2, Partition Plat No. 1998-14, Deschutes County, Oregon, also described of record as: A tract of land located in the North one-half of the Southeast one-quarter of Section 18, Township 22 South, Range 11 East of the Willamette Meridian, Deschutes County, Oregon, being more particularity described as follows: Beginning at the East one-quarter corner of said Section 18; thence South 00° 20' 14" West 1325.70 feet to the South one-sixteenth corner of said Section 18; thence North 89° 50' 47" West along the East-West centerline of the Southeast one-quarter of said Section 18, 1387.73 feet to the True Point of Beginning; thence North 89° 50' 47" West along said East- West centerline of the Southeast one-quarter, 726.00 feet; thence leaving said East-West centerline North 00° 09' 13" East 300,00 feet; thence South 89° 50' 47" East 726.00 feet; thence South 00` 09' 13" West 300.00 feet to a point on the East-West centerline of the Southeast one-quarter and the True Point of Beginning. (17400 Finley Butte Road, La Pine, Oregon 97739) SCHEDULE 4(a) {ff9t8Bt(Ad& at)3-044 Page 12 SCHEDULE 4(e) intellectual Property Licenses: 1. QuickBooks Pro 2012, License Number 7214-1512-0720-896 2, Continental Billing System for Windows (CBSW) 3. Neptune Technology Group, Inc., AHB N_SIGHT Mobile Websites and email addresses: 1, www.lapinewater.org 2, info@lapinewater.org 3. dblatnik@lapinewater.org 4, scott@lapinewater.org 5. ashley@lapinewater.org 6. wayne@lapinewater.org 7. lapinewater@bendnet.com SCHEDULE. 4(e) { ®iPAAOC W22 }3-044 Page 13 W w Cakxrjar Sraistr - Hers Veridors f rr¢'k vr+; L t'_- Reports AppCerter CP5' Construttlon Pdty Cash , W Y r , Fes: p rk? Iq ' P Cum an y B WOUM Yalances South V*gatkOpera. VC Name Balance • i A t Chart of USDA Payme.„ 109,12 t :.1 t ACCaunU WkknpPaym,,. 9,978,65 Reserve Fund 0.00 ET1~`uii- Res F... 0 9 j 1 xr- Inde SV BT 567,5 ~ la ;Deposrts 15,114,.. J Ever Accounts Rec... 5,497,75 ` A Accwhts Pay.,. 735.01 Cash Crawer 125,00 !Petty Cash 50,00 ftie Federal... 36.61 ;Reserve . 173 54 . Fun x esa , 19;955 , R W ' ` 14,754 v US Pmt Fu 1 J w• +..1ti' ~ fin{ 1T„~~~1, , - t7 Da More with QuICkHu.,: ~ ,wr~1 vt { ~AMLR' ~ ~ . '~'k~ Ur t p~~'all 'T~ r F ~a , ~ c r { F ? ~ . .''1' '~y rh)~!~~ ~ - ~E~LfCtllt LafdS .,J _ y 7 0 order Chdcs a R c v 4 1 \ r w r t Ed 2commende r y atemant Financetcr Refunds „+larw t7rirr Checl 2 ~ ~r;F,r,';~ . ha+ge5 ihajes zGrdts Chtrks Re~stef E7 backup Status Local; Xm 13, 2012, v 09:56 AM ,t v o rJ f 1 ~ [>nrare: ~ kup Drina c {V1 s! 6 E Pt}rik Enter turn 0n rhecis A lime Payrol 0 Reminders & Aierts r Jy l~=?7 ova y~ .}t kkw r7f1~9 _ a, 8 fry 'Ssm, w F 1 Exhibit A to Order 2013-044 Page 14 Took 4 r C u ¢r ^:i x Continental Billing:Systerri for Windows (CBSW) Acccxr t Ftistory Final B1 copyright 1999-2011 Continental Utility Solutions, inc. (CUSI) EMPtlgns Contacts Lbsw.exe Version: 11.0.4 Location lflstory Licensed to; La Fine Water District Recl,rrm Payment User Codes 5ervice Locattnrls: ID63 Transfer Max5erviceL%ation 20 1 Notes Stock Connections n Lisa; 1 Vplatlprt5 Licensed Corv>ectdars: 2 C65W makes, use d Icons from the fo.L!awrnq Icon banes: Tapp Desk t)p Projoct •http, J(tango,hodesldop,arc7,f1"an gojI on_Gaky ^ Neat Cora Icons - NtiI/www+neatu.corn S& Icon Se - i Module. Sze........ DateModfie_d.,.. TYrreMa1#atd . . BILLING -APP 1674959 03J1212012 9;08!00 CMREPAIR,APP 589257 0242212006 15:2110 CU5TOMER,APP 2137056 03J1212012 9:08;06 pELiNQUE,APP 964LV3 03/1212012 90:118 f - - EMAIL,APP 340535 0311212012 90:44 r FRMNAV.APP 644955 0811812008 14.23:04 C tstWller GLEXPORT,APP 208779 0311212012 9:08:32 - HELMR5APP 29929 0511342010 15:51:42 Gr7i fl 155t1ETRACKER,APP 344061 0311242012 9:08;46 LIENAPP 438096 0341212012 9:08;10 pa'nll8nt OPTIMIZE2,APP 2006936 03112420L2 9;0838 ~ PRNTYCE,APP 7414 0112212010 12;19:20 hp&C TtOIIs RATECOOE,APP 1632271 0311242012 9:08,14 REP05],APP e14964 1112712007 17:14:30 C10S0 REPORTBWU)ER.APP 749366 11104(2005 18:59:12 E,i s~ow 0) `tarti-P Exhibit A to Order 2013-044 Page 15 Nid. hMea Xrly Ydri Erh 2 Import +*1*'H,ndhekl . r Baekup fit. n6Nc marl n. -Version: 3.'1.090324 ~unaba3eVersiun-3.1..D9ri3ZJ . U:: r,.t' NahlUng liner Reporting pn,r n y UR lx lljhl ld Tyj),I.c): E711HP - iASA Lkol 6, 0'i lln: na t~r~ ; Cu:iomF.ep,.rtz f 1 1hd hnto D)/d;,ita Check: Iluf Confi~ w, u! check-Now] l.. Utilities f)hone: 50UF1d7-lU3i `crnall;!>,Isni~ieplunetj~c~t o Neptune Technology Group Inc, ERTUNE 777 E C H N 0 L 0 G Y G F 0 Q P f1ruM1 TT, ~'-'r t$ aE y~ { i ~l a r by? X-P Exhibit A to Order 2013-044 Page 16 SCHEDULE 4fg) Contracts 1. Two loans District has outstanding with the USDA, namely (a) that certain Water Revenue Bond No. 1 dated November 24, 2003 in the principal amount of $2,$26,500.00, and (b) that certain Water Revenue Bond No. 2 dated February 24, 2005 in the principal amount of $325,000.00. 2. Verbal agreement between La Pine Water District and La Pine Rural Fire Department for the Fire Department to number the hydrants to its liking and then provide the District with a list of the numbering system so the District can incorporate it into its hydrant map. S~CgHE3ME 4(g)1 ( k'x ZU iM, A t.Ogrrde'r ~ 8; 3-044 Page 17 SCHEDULE 9 List of Transferring District Employees 1. Johnny Bales 2. Scott Perkins 3. Donna Zigler SCHEDULE 9 {1 W,'~~ I'8,1",'2913-044 Page 1 s LI I SF a f,. L LA PINE WATER DISTRICT PO BOX 2460 P hon e:(541) 5365281 51490 H inkle way Pak (541)5368003 mmmj La Pin 0. OR 97739 www.lapinewater.org La Pine Water District Resolution No. 2012-8 Dissolution of the La Pine Water District WHEREAS, The City of La Pine has advised that, pursuant to ORS 222.520, it will withdraw all District property located within the City limits of the City of La Pine; and WHEREAS, the City of La Pine and the La Pine Water District agree that if the City withdraws the property from the District, it includes all District operational assets as listed in ORS 222.540 and none shall remain as property of the District; and WHEREAS, as only 2.6 uninhabited acres of the District will remain, the existing La Pine Water District should be dissolved and succeeded by the City; and WHEREAS, the Plan of Distribution of Assets and Liabilities is incorporated in the Master Withdrawal and Transfer Agreement between the District and City; and WHEREAS, after the withdrawal of territory from the District, there will remain no qualified Directors of the District, and no qualified voters, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the La Pine Water District that: Section 1. Dissolution of La Pine Water District: The Board of Directors supports and approves the dissolution of the La Pine Water District in accordance with dissolution procedures set forth in ORS 198.920. Section 2. That the Board of Directors of the District approves the Joint Master Withdrawal and Transfer Agreement, dated June 27, 2012. Page 1 of 2 Exhibit B to Order 2013-044 Page 1 IT IS FURTHER RESOLVED that this resolution shall be forwarded to the Deschutes County Board of Commissioners for further action in accordance with ORS 198.920(3) and 198.940. Dated this 27th day of June, 2012. e-K-eattes, President ATTEST: Terry Makinson, Secretary/Treasurer Ayes: Nays: Page 2 of 2 Exhibit B to Order 2013-044 Page 2