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Deschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of September 30, 2013
DATE: September 19,2013
FROM: Laurie Craghead. Legal 541-388-6623
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Order 2013-044 Declaring the Board of County Commissioners to
be the Board of Trustees for the La Pine Water District, and Initiating and Finalizing the Dissolution of
the District
PUBLIC HEARING ON THIS DATE? NO.
BACKGROUND AND POLICY IMPLICATIONS:
In June 2012, the City of La Pine entered in to agreements with the La Pine Water District and the La
Pine Special Sewer District to take over the responsibilities of the districts for the territory within City
limits. The agreement also provided for the transfer of all the districts' assets to the City. Since then,
neither district has had any governing body members. The only real property that remained in district
was a 2.6 acres parcel on the west side of Huntington Road but south of Burgess Road.
The districts could not be dissolved, however, until the United States Department of Agriculture
consented to the transfer of the Sewer District's USDA loan to the City. That consent has now been
gIven.
Because the district consists of only the 2.6 acre parcel that is not served by the districts, the districts
are no longer necessary for the purpose for which they were formed. Therefore, it is in the best interest
of the citizens of the districts and the County to dissolve the districts.
Order 2013-044 provides all the statutorily required findings for dissolving the La Pine Water District.
FISCAL IMPLICATIONS:
None
RECOMMENDATION & ACTION REQUESTED:
Motion: Approve Board Signature of Order No. 2013-044
ATTENDANCE: Laurie Craghead
DISTRIBUTION OF DOCUMENTS:
Laurie Craghead to get original in order to obtain 3 certified copies of the order.
REVIEWED
LEGAL C UNSEL
For Recording Stamp Only
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 ofthe 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 oftrustees 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
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PAGE I OF 3-ORDER No. 2013-044 I
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 198.940, 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 ofthe 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.
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PAGE 2 OF 3· ORDER No. 2013-044 I
Section 4. Upon filing ofthe dissolution plan with the County Clerk, the District is dissolved.
Dated this ___of September, 2013. BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ALAN UNGER, Chair
TAMMY BANEY, Vice Chair
ATTEST:
Recording Secretary ANTHONY DeBONE, Commissioner
STATE OF OREGON )
) ss.
County of Deschutes )
Signed and sworn to (or affirmed) before me, a Notary Public, by ALAN UNGER, TAMMY BANEY,
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 ______, 2013.
Notary Public for Oregon
My Commission Expires: _________
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