February 19, 2010

Contact:

Clackamas County, Tim Heider    (503) 742-5911

City of Milwaukie, Grady Wheeler: (503) 786-7503

FOR IMMEDIATE RELEASE

Clackamas County and Milwaukie reach agreement outlining negotiation process

Clackamas County Service District No.1 (CCSD #1) and the City of Milwaukie have reached an agreement to resolve their dispute over wholesale sewer rates through a mediation process and if necessary, binding arbitration.

The agreement negotiated over the past several days and signed on Feb. 19 caps months of sometimes intense negotiations between the District and Milwaukie.

Mediation is slated to begin by March 1. If an agreement is not reached through the mediation process, both sides have agreed to enter a binding arbitration process by April 1.  An arbitrator must issue a decision by May 31. The terms of that agreement will be retroactive to August 2009 and will extend through June 30, 2012. This agreement will set a new rate for wastewater treatment and settle any past due amounts owed by Milwaukie. The signed agreement stipulates that once these issues are settled negotiations will turn towards establishing a long-term wholesale treatment service contract by June 30, 2012.

The agreement brought a close to Milwaukie’s legislative efforts seeking to intervene in the issue.

“We look forward to finally sitting down with the county to review one another’s rate methodologies,” Mayor Jeremy Ferguson said.  “And I’m encouraged by the fact we were able to work together to establish a process that will deliver results in a timely manner.”

“It’s a tribute to all involved in this process that we were able to reach an agreement that sets the stage for an amicable working relationship moving forward,” said Board of County Commission Chair Lynn Peterson.

"We owe Representative Carolyn Tomei (D-Milwaukie) a debt of gratitude for helping to turn discussions in the positive direction they appear to be heading," added City Councilor Greg Chaimov.  

“I am confident that this action will ultimately result in a contract that will be fair and equitable for our ratepayers and the City of Milwaukie," said County Commissioner Ann Lininger.

Other terms of the agreement are:

· The District agrees to drop the Feb. 28 deadline to reach an agreement before serving notice that it would no longer treat Milwaukie’s wastewater. Such notice will not be considered by the District before July 1, 2013.

· Milwaukie agrees to drop efforts to classify the Kellogg Treatment Plant as a nonconforming use during the length of the agreement.

· The cities of Happy Valley, Damascus, and urban unincorporated CCSD #1 ratepayers will participate in the arbitration and long-term wholesale treatment service negotiations.

· An arbitration panel of legal and utility rate experts will determine Milwaukie’s rate if the parties are unsuccessful in mediation.

CCSD#1 provides wastewater treatment services to much of north Clackamas County, east of the Willamette River.  Milwaukie is a wholesale customer that comprises approximately 20 percent of the district’s customer base.