Chapter 550 — Urban Flood Safety and Water Quality District

2023 EDITION

URBAN FLOOD SAFETY AND WATER QUALITY DISTRICT

WATER LAWS

550.150 Purpose of ORS 550.150 to 550.410

550.160 Definitions

550.170 Urban flood safety and water quality district; boundaries; vested water rights unimpaired

550.180 District electors and landowners authorized to contest validity of board proceeding, action, order, contract, decision or enactment

550.190 Initial district board

550.195 Board of directors

550.196 Terms of first directors

550.200 Organizational meeting of board of directors; oath; officers; meetings; quorum

550.210 Duties of board of directors

550.220 Stakeholder advisory committees

550.230 General powers of district

550.240 Eminent domain

550.250 District activities as urban services

550.260 Plan for watershed and habitat improvement and landscape resilience; decennial review

550.270 Construction of district works

550.280 District contracts subject to Public Contracting Code

550.290 Construction on public land or right of way or along public watercourse

550.300 Financing construction, operation or maintenance of district works; local option taxes prohibited

550.310 Assessments against benefited lands for district works; apportionment; hearing; works bonds

550.320 Ad valorem property taxes; Local Budget Law applicable

550.330 Service and user charges for district works; collection agreements; revenue bonds

550.340 General obligation bonds

550.350 Loan agreements with state and federal agencies; enforcement by order of circuit court; filing of loan certificate

550.360 Dissolution of drainage or water control district or corporation; transfer of assets and liabilities to district; debt distribution plan; zone committee for continuity

550.370 Notice requirements

550.380 Election laws applicable

550.390 Waterway pollution; penalty

550.400 Civil liability for remediation costs

550.410 Additional cause of action for certain impairments of district works

550.005 [Formerly part of 550.010; repealed by 1969 c.50 §1]

550.010 [Amended by 1957 c.636 §1; part renumbered 550.005; repealed by 1969 c.50 §1]

550.020 [Repealed by 1969 c.50 §1]

550.030 [Repealed by 1969 c.50 §1]

550.040 [Amended by 1957 c.636 §2; repealed by 1969 c.50 §1]

550.050 [Amended by 1957 c.636 §3; repealed by 1969 c.50 §1]

550.060 [Amended by 1957 c.636 §4; repealed by 1969 c.50 §1]

550.070 [Amended by 1957 c.636 §5; repealed by 1969 c.50 §1]

550.080 [Amended by 1957 c.636 §6; repealed by 1969 c.50 §1]

550.090 [Repealed by 1969 c.50 §1]

550.100 [Repealed by 1969 c.50 §1]

550.110 [Repealed by 1969 c.50 §1]

550.120 [Repealed by 1969 c.50 §1]

550.130 [Repealed by 1969 c.50 §1]

550.140 [Amended by 1957 c.636 §7; repealed by 1969 c.50 §1]

550.150 Purpose of ORS 550.150 to 550.410. The Legislative Assembly declares the lands protected by the Columbia River levee system in northern Multnomah County to be of statewide and regional significance because they contain significant industrial and economic lands, one of the state’s most important transportation hubs, the Portland International Airport, the second largest source of drinking water in Oregon and a number of important natural assets. This area also represents a significant cultural and community history of flooding, displacement and loss, a history that should be remembered so that it is not repeated. The purpose of ORS 550.150 to 550.410 is to create a new special district that has the legislative authority and financial capability to carry out the purposes set forth in ORS 550.170 (1). [2019 c.621 §1]

550.160 Definitions. As used in ORS 550.150 to 550.410, unless the context requires otherwise:

(1) “Board of directors” means the nine-member board of directors of the urban flood safety and water quality district selected under ORS 550.195.

(2) “District” means the urban flood safety and water quality district created under ORS 550.170.

(3) “Elector” means an individual qualified to vote under Article II, section 2, of the Oregon Constitution, who resides in the district.

(4) “File for record” means to file a document for recording with the county clerk.

(5) “Green infrastructure” means infrastructure adapted to wet weather management that:

(a) Infiltrates, evapotranspires, captures and reuses storm water to maintain or restore natural hydrology;

(b) Protects or restores natural landscapes;

(c) Uses rain gardens, porous pavements, green roofs, infiltration planters, trees, tree boxes, bioswales or other green infrastructure strategies; or

(d) Harvests rain water from an artificial impervious surface for nonpotable uses, including landscape irrigation and toilet flushing.

(6) “Initial district board” means the 17-member appointed board of directors under ORS 550.190 (1).

(7) “Land” or “tract of land” means real property, including improvements on the property.

(8) “Landscape resilience” means the ability of a landscape to sustain ecological functions, native biodiversity and critical landscape processes over time, under changing conditions and despite multiple stressors and uncertainties.

(9) “Managed floodplain” means the portion of the historic Columbia River floodplain located in northern Multnomah County that requires or benefits from management to accomplish the purposes of the district, as determined by the board of directors.

(10) “Public body” has the meaning given that term in ORS 174.109.

(11) “Works” means dams and storage reservoirs for flood risk reduction, canals, ditches, dikes, levees, revetments, green infrastructure and all other structures, facilities, improvements and property necessary or convenient for conveying and controlling water for the purpose of flood control, environmental benefits or water quality. [2019 c.621 §2; 2022 c.16 §1]

550.170 Urban flood safety and water quality district; boundaries; vested water rights unimpaired. (1) An urban flood safety and water quality district is created for the purpose of acquiring, purchasing, constructing, improving, operating and maintaining works in order to:

(a) Reduce the risk of flooding;

(b) Protect people and property from flood risk;

(d) Convey water for the purpose of flood safety;

(e) Contribute to improved water quality, fish and wildlife habitat, floodplain restoration and landscape resilience;

(f) Promote equity and social justice in all aspects of the district’s operations;

(g) Prepare for and adapt to the impact of climate change in relation to the managed floodplain; and

(h) Provide the public with information regarding the cultural history of the territory in the managed floodplain.

(2)(a) The boundaries of the district are the boundaries of the portion of Multnomah County that lies within the urban growth boundary adopted by the metropolitan service district under ORS 268.390 as the urban growth boundary exists on September 29, 2019, or as changed by the metropolitan service district under ORS 268.354 on or after September 29, 2019. All cities and taxing districts within the boundaries of the district shall be included in the district.

(b) A change to the boundaries of the district made pursuant to this subsection must be filed in final approved form with the county assessor and the Department of Revenue as provided in ORS 308.225.

(3) ORS 550.150 to 550.410 may not be construed to affect, amend or repeal any other Oregon law or to affect or impair the vested rights of any person or public body to the use of water or vested rights in the use of water. [2019 c.621 §3]

550.180 District electors and landowners authorized to contest validity of board proceeding, action, order, contract, decision or enactment. (1)(a) Any elector or owner of land within the district may bring any proceeding that the board of directors is authorized to bring under ORS 33.710.

(b) The proceeding shall be governed by ORS 33.720, except as otherwise provided in this section.

(2) The proceeding shall be brought in Multnomah County Circuit Court. The board of directors shall be named as defendant in the proceeding.

(3) Service of summons shall be made on the members of the board of directors personally if within Multnomah County. For directors not within the county, service may be made by publication of notice for a like time, and in like manner, as provided by ORS 33.720. Jurisdiction shall be complete within 10 days after the date of completing publication of notice. [2019 c.621 §4; 2022 c.16 §2]

550.190 Initial district board. (1) The initial district board of the urban flood safety and water quality district shall consist of 17 directors appointed as follows:

(a) One director representing the City of Portland appointed by the Portland city council.

(b) One director representing the City of Gresham appointed by the Gresham city council.

(d) One director representing the City of Troutdale appointed by the Troutdale city council.

(e) One director representing the City of Wood Village appointed by the Wood Village city council.

(f) One director representing Metro appointed by the Metro Council.

(g) One director representing Multnomah County appointed by the Multnomah County board of county commissioners.

(h) One director representing the Port of Portland appointed by the board of commissioners of the Port of Portland.

(i) One director representing Multnomah County Drainage District No. 1 appointed by the district board of supervisors.

(j) One director representing Peninsula Drainage District No. 1 appointed by the district board of supervisors.

(k) One director representing Peninsula Drainage District No. 2 appointed by the district board of supervisors.

(L) One director representing Sandy Drainage Improvement Company appointed by the company board of directors.

(m) One director who resides in a neighborhood within the boundaries of Multnomah County Drainage District No. 1, Peninsula Drainage District No. 1, Peninsula Drainage District No. 2 or Sandy Drainage Improvement Company appointed by the Governor.

(n) One director who represents a private sector business located within the boundaries of Multnomah County Drainage District No. 1, Peninsula Drainage District No. 1, Peninsula Drainage District No. 2 or Sandy Drainage Improvement Company appointed by the Governor.

(o) Three directors who represent public interest nonprofit corporations with expertise or interest related to the territory within the boundaries of Multnomah County Drainage District No. 1, Peninsula Drainage District No. 1, Peninsula Drainage District No. 2 or Sandy Drainage Improvement Company appointed by the Governor, of which:

(A) One director must represent an environmental conservation organization; and

(B) One director must represent an environmental justice organization.

(2) The purpose of the initial district board is to organize the district and to develop, and approve or seek approval from the electors of, methods of funding the operations of the district. To accomplish this purpose, in addition to the duties and powers conferred on the initial district board under ORS 550.150 to 550.410, the initial district board may exercise all the duties and powers conferred on the board of directors under ORS 550.150 to 550.410, other than the power to dissolve a drainage district or corporation under ORS 550.230 (12).

(3)(a) At the first meeting of the initial district board, the board shall elect a member to serve as chair. The chair shall preside over board meetings, appoint subcommittees subject to board approval and set the meeting agenda subject to revisions by the board.

(b) A majority of the directors of the initial district board shall constitute a quorum for the transaction of business.

(4) Any vacancy on the initial district board shall be filled by majority vote of the remaining directors of the board. The replacement director must qualify for the vacant position as provided in subsection (1) of this section.

(5)(a) The directors of the initial district board shall serve in place of the board of directors until the initial district board adopts a resolution calling for the appointment and election of the board of directors and a quorum of the directors of the board of directors, as determined under ORS 550.200 (4), takes office.

(b) The resolution of the initial district board shall call for the appointment and election of the board of directors to take place not less than six months after the date on which the district first begins to collect revenues under one of the methods set forth in ORS 550.300.

(6) Notwithstanding ORS 255.325 and 255.335, the first elected directors of the board of directors may be elected at a special election held in accordance with ORS 255.345. [2019 c.621 §5; 2022 c.16 §3]

550.195 Board of directors. (1) The board of directors shall consist of nine voting directors selected as follows:

(a) One director shall be elected at large by the electors. A candidate for this position must be an elector.

(b) Four directors shall be elected at large by the electors. A candidate for any of these positions must be an elector who:

(A) Resides within the managed floodplain;

(B) Regardless of whether the elector resides within the managed floodplain, owns real property located within the managed floodplain; or

(C) Regardless of whether the elector resides within the managed floodplain, is the designated representative of a business or other for profit or nonprofit corporation that owns real property located within the managed floodplain and is authorized in writing by the owner to be a candidate at the time of filing the declaration of candidacy.

(c)(A) The Governor shall appoint four directors as follows:

(i) One director with expertise or an interest in flood safety;

(ii) One director with expertise or an interest in environmental conservation;

(iii) One director with expertise or an interest in environmental justice; and

(iv) One director representing the Port of Portland from among persons recommended by the board of commissioners of the Port of Portland.

(B) Before making an appointment under subparagraph (A)(i) to (iii) of this paragraph, the Governor shall provide the board of directors with an opportunity to recommend individuals who may have specific kinds of expertise that the board believes to be necessary or beneficial to the district.

(2) Each elected director of the board of directors shall be elected at a regular district election for a term of four years as provided in ORS 255.335.

(3) Each director of the board of directors appointed by the Governor under subsection (1)(c) of this section shall be appointed for a term of four years beginning July 1 and ending June 30.

(4)(a)(A) The board of directors shall fill any vacancy among the elected directors of the board of directors as provided in ORS 198.320.

(B) The Governor shall fill any vacancy among the appointed directors of the board of directors.

(b) A director appointed to the board of directors under paragraph (a) of this subsection shall serve the remainder of the unexpired term of the director that the newly appointed director replaces. [2022 c.16 §5]

550.196 Terms of first directors. (1)(a) Notwithstanding ORS 550.195 (2), the first directors elected at a regular district election shall determine their terms by lot so that the terms of two directors expire on the first June 30 that occurs at least two years after the date of the regular district election at which they were elected and the terms of three directors expire on the first June 30 that occurs at least four years after the date of the regular district election at which they were elected.

(b) Notwithstanding paragraph (a) of this subsection, if the first elected directors are elected at an election other than a regular district election under ORS 255.335, the directors shall take office upon certification of the election under ORS 255.295 (2) and shall serve until the first June 30 that occurs after the date of the next regular district election, at which election the elected members of the board of directors shall be elected as provided in paragraph (a) of this subsection.

(2)(a) Notwithstanding ORS 550.195 (3), two of the first directors appointed by the Governor shall serve terms ending on the date on which the terms of two of the first directors elected at a regular district election expire as provided in subsection (1)(a) of this section and the other two of the first directors appointed by the Governor shall serve terms ending on the date on which the terms of three of the first directors elected at a regular district election expire as provided in subsection (1)(a) of this section.

(b) The Governor shall determine which of the first directors shall be appointed under this subsection for the two-year and the four-year terms. [2022 c.16 §5a]

550.200 Organizational meeting of board of directors; oath; officers; meetings; quorum. (1) As soon as practicable after the election and appointment of the directors to the board of directors, the directors shall meet to qualify all individuals elected or appointed as directors by administering an oath of office and to elect the officers of the board of directors.

(2) The directors shall elect from their number a chair and vice chair. Such officers have the authority and duties granted them by the board of directors.

(3) The board of directors shall meet at times and places that the board of directors considers necessary or convenient.

(4) A majority of the directors shall constitute a quorum for the transaction of business. [2019 c.621 §6; 2022 c.16 §6]

550.210 Duties of board of directors. The board of directors shall:

(1) Manage and conduct the affairs of the district.

(2) Employ and appoint agents and employees and prescribe the duties and fix the compensation of the agents and employees.

(3) Establish reasonable bylaws and rules for the administration of the affairs of the district.

(4) Adopt ordinances under ORS 198.510 to 198.600 that the directors consider necessary or convenient for carrying out or enforcing the district’s powers and duties under ORS 550.150 to 550.410.

(5) Establish and maintain funds and accounts for the moneys of the district.

(6) Obtain an annual audit of the books of the district.

(7) Fix the location of the principal office of the district at some convenient place within the district.

(8) Keep a record of all proceedings of the board of directors.

(9) File for record all documents required by law to be recorded.

(10) Establish the boundaries of the managed floodplain. The board of directors may amend the boundaries from time to time as the board deems necessary or prudent to address regulatory or environmental changes that affect the need for district management to accomplish the purposes of the district set forth in ORS 550.170.

(11) Consider equity and inclusion in all aspects of administering the district.

(12) Call elections within the district as provided in ORS chapter 255, including, but not limited to, elections for the purposes of ORS 550.190 and 550.340.

(13) Do such other acts and things as may be necessary or proper for the exercise of the duties imposed on the board of directors. [2019 c.621 §7; 2022 c.16 §7]

550.220 Stakeholder advisory committees. The board of directors may appoint stakeholder advisory committees to:

(1) Advise the board of directors on aspects of the operation of the district;

(2) Assist with community outreach and citizen participation; and

(3) Advise on such other matters as the board of directors deems necessary or beneficial to the district. [2019 c.621 §8; 2022 c.16 §8]

550.230 General powers of district. To carry out the purposes for which it was created, the urban flood safety and water quality district is a body corporate and has the power to, without limitation:

(1) Have and use a seal.

(2) Have perpetual succession.

(3) Sue and be sued in its own name.

(4) Acquire by condemnation, purchase, devise, gift or voluntary grant real and personal property, or any interest in such property, located inside or outside the boundaries of the managed floodplain, as the board of directors deems necessary for the purposes of the district set forth in ORS 550.170, and dispose of such real and personal property when the board of directors deems the property unnecessary for the purposes of the district set forth in ORS 550.170.

(5) Enter into intergovernmental agreements under ORS chapter 190 for the construction, preservation, improvement, operation or maintenance of any works or other services.

(6) Enter into contracts with the federal government, including, without limitation, the United States Army Corps of Engineers and the Federal Emergency Management Agency.

(7) Build, construct, purchase, improve, operate and maintain, subject to all applicable provisions of law, all works that the board of directors considers necessary or desirable.

(8) Enter into contracts and employ agents, engineers and attorneys.

(9) Enter into contracts or grant agreements with nonprofit corporations or community groups.

(10) Acquire and maintain water and water rights, as the board of directors deems necessary for the purposes of the district set forth in ORS 550.170.

(11) Enforce the authority of the district and protect the district’s works against public nuisances, obstructions or discharges on public or private property that the district deems to have a negative impact on the district’s works.

(12) Dissolve any drainage district or corporation described in ORS 550.360 that is located entirely within the boundaries of the district and assume the assets of the dissolved district or corporation, including all lands and personal property, water rights, obligations, debts and liabilities.

(13) Do such other acts and things as may be necessary or proper for the exercise of the powers granted to the district. [2019 c.621 §9; 2022 c.16 §9]

550.240 Eminent domain. (1) Except as otherwise provided in this section, the exercise of the power of eminent domain by the urban flood safety and water quality district pursuant to ORS 550.230 (4) shall be governed by ORS 35.015 to 35.530.

(2) The district’s authority to condemn property is limited to property located:

(a) Within the managed floodplain; or

(b) Outside the managed floodplain if the board of directors deems such property to be necessary for flood control within the managed floodplain.

(3) The district’s authority to condemn property includes property already devoted to a public use, if acquisition of such property is required by regulations applicable to the district under federal law, is required by a federally mandated agreement between a federal agency and the district or is approved by the public body that owns the property.

(4) If the district seeks to acquire by eminent domain all or a portion of property dedicated to open space under the land use regulations of a city or county, just compensation shall be determined based on the zoning designation applicable to the property immediately prior to the open space dedication. [2019 c.621 §10; 2022 c.16 §10]

550.250 District activities as urban services. Activities of the urban flood safety and water quality district are deemed to be urban services, as defined in ORS 195.065, if the district engages in the activities to manage flood control and safety, water quality or surface water. [2019 c.621 §11]

550.260 Plan for watershed and habitat improvement and landscape resilience; decennial review. (1)(a) The urban flood safety and water quality district shall prepare a plan for watershed and habitat improvement and landscape resilience within the managed floodplain. The watershed improvement plan shall be coordinated with plans or programs of other jurisdictions with authority over watershed management within the managed floodplain.

(b) The urban flood safety and water quality district may seek funding from other sources if the district determines that the watershed improvement plan would benefit the region or the state.

(2)(a) A watershed improvement plan prepared pursuant to this section must:

(A) Include existing and proposed works of the district and of other public and private agencies relating to flood safety and watershed health; and

(B) Demonstrate a basis for the coordination and planning of future works of the district, governmental agencies and private interests to contribute to improved water quality, fish and wildlife habitat and landscape resilience while reducing the risk of flooding, protecting persons and property from flood risk, improving response to flood emergencies and providing for conveyance of water for flood safety.

(b) A watershed improvement plan and works included in the plan must be based on assessments of data and information critical for evaluating and monitoring flood safety or watershed health.

(3)(a) The initial district board appointed under ORS 550.190 (1) shall consider the projected scope of a watershed improvement plan and the impact of the plan on the cost of the district’s works in the course of developing methods of funding the operations of the district as provided in ORS 550.190 (2).

(b) The board of directors shall complete a watershed improvement plan within three years following the date on which the first board of directors commence their terms of office as provided in ORS 550.195 and 550.196.

(4) The district shall review and update the watershed improvement plan at least every 10 years. [2019 c.621 §12; 2022 c.16 §11]

550.270 Construction of district works. (1) The urban flood safety and water quality district may undertake construction of works upon approval of the proposed works by the board of directors.

(2) The board of directors shall obtain engineering plans for any works that require engineering. [2019 c.621 §13; 2022 c.16 §12]

550.280 District contracts subject to Public Contracting Code. The urban flood safety and water quality district is a contracting agency as defined in ORS 279A.010 for all applicable requirements of the Public Contracting Code. [2019 c.621 §14]

550.290 Construction on public land or right of way or along public watercourse. (1) The urban flood safety and water quality district may construct works:

(a) Across or along any street or public highway, or over any lands, that are the property of the state or of any political subdivision of the state.

(b) Across or along any stream of water or watercourse, any ground water resource or any affected lands that are the property of the state or of any political subdivision of the state.

(2) When constructing works under this section, the district shall comply with all federal, state and local permitting and regulatory requirements and restrictions applicable to the district’s work in a street, right of way, stream of water or watercourse or ground water resource that is the property of the state or of any political subdivision of the state. [2019 c.621 §15]

550.300 Financing construction, operation or maintenance of district works; local option taxes prohibited. (1) The board of directors may finance the construction, operation or maintenance of district works by the following means:

(a) Assessments made under ORS 550.310 against the benefited lands in the district, with or without the issuance of works bonds.

(b) Service and user charges imposed under ORS 550.330, with or without the issuance of revenue bonds.

(d) Any other means authorized by law.

(e) Any combination of the means described in this section.

(2) Notwithstanding subsection (1) of this section, the board of directors may not levy local option taxes under ORS 280.040 to 280.145. [2019 c.621 §16; 2022 c.16 §13]

550.310 Assessments against benefited lands for district works; apportionment; hearing; works bonds. (1) All or part of the cost of building, constructing, purchasing, operating, maintaining or improving works of the urban flood safety and water quality district may be assessed against the lands to be benefited by the works. The board of directors shall determine the portion of the cost, if any, that is to be paid from the general fund of the district and the portion that is to be paid by assessments against the lands benefited.

(2) Assessments shall be apportioned by the board of directors among benefited lands in accordance with the special and peculiar benefit to be received from the district works by each lot or parcel of land. For parcels of land, or any portion of the parcels, in the district that are undeveloped, the board of directors may, in its discretion, defer assessing or imposing all or any portion of the assessments on such parcels until the parcels are connected with, or receiving services from, the district works.

(3) The board of directors shall afford an opportunity for hearing any objections or remonstrances to assessments under this section. If the board of directors receives objections or remonstrances that are signed by more than 50 percent of the landowners representing more than 50 percent of the territory within the proposed assessment district, the proposed assessment may not be imposed.

(4) If any portion of the cost of district works is assessed against benefited lands under this section, the board of directors may issue works bonds in the total amount of the valid applications the board of directors has received to pay assessments in installments as provided by ORS 223.205 and 223.210 to 223.295. [2019 c.621 §17; 2022 c.16 §14]

550.320 Ad valorem property taxes; Local Budget Law applicable. (1)(a) The urban flood safety and water quality district may annually impose, assess and collect a tax on all taxable property located in the district in an amount sufficient to pay the principal and interest due in the fiscal year on outstanding general obligation bonds issued by the district.

(b) The tax imposed pursuant to this subsection shall be applied only in payment of the principal and interest due on bonds issued by the district. In addition, the district may apply any otherwise unobligated district funds toward payment of the principal and interest due on the bonds.

(2) The district is a municipal corporation for purposes of ORS 294.305 to 294.565 and shall file a written notice with the county assessor as required under ORS 310.060. [2019 c.621 §18]

550.330 Service and user charges for district works; collection agreements; revenue bonds. (1) To pay the costs of acquiring, purchasing, constructing, improving, operating and maintaining district works, the board of directors may adopt an ordinance to:

(a) Impose and collect service charges, fees or rates on the owners or occupants of property served by the works of the district.

(b) Impose and collect user charges, fees and tolls for connection to or use of works, facilities and services of the district.

(2) Charges, fees, rates and tolls described in subsection (1) of this section shall be based on the costs of acquiring, purchasing, constructing, improving, operating and maintaining the works, facilities or services and of administering the charges.

(3) The board of directors may adopt differential charges or rates applicable to unique, qualitatively different areas within the district when the board of directors deems such differential charges or rates necessary, beneficial or equitable.

(4) Service charges, fees and rates imposed on the owners or occupants of property located outside the managed floodplain shall be commensurate with:

(a) The benefits received by such properties from the works; or

(b) The costs actually incurred by the district related to such properties, including, but not limited to, pumping of storm water runoff.

(5) The district may enter into intergovernmental agreements under ORS chapter 190 with cities located in whole or in part within the district boundaries to collect service charges, fees and rates on behalf of the district.

(6) The board of directors may issue revenue bonds by pledging all or part of any charge, fee, rate or toll adopted pursuant to this section. All revenue bonds issued under this section shall be issued as prescribed in ORS chapter 287A. [2019 c.621 §19; 2022 c.16 §15]

550.340 General obligation bonds. (1)(a) Upon approval of the electors of the urban flood safety and water quality district, the district may issue general obligation bonds. The district may not issue or have outstanding at the time of issuance general obligation bonds in a principal amount that exceeds two percent of the real market value of all taxable property in the district, calculated as provided under ORS 308.207.

(b) Bonds issued under this section may be issued solely for the purpose of financing:

(A) Capital construction or capital improvements within the meaning of Article XI, section 11, of the Oregon Constitution;

(B) Capital construction or improvements within the meaning of Article XI, section 11b, of the Oregon Constitution; or

(2) All general obligation bonds, including refunding bonds, issued under this section shall be issued as prescribed in ORS chapter 287A. [2019 c.621 §20]

550.350 Loan agreements with state and federal agencies; enforcement by order of circuit court; filing of loan certificate. (1) The urban flood safety and water quality district may enter into a loan agreement with a state or federal agency. The loan agreement shall be in such form and contain such terms as the district and the agency may agree to.

(2) The district may agree to impose and collect assessments against each tract of land benefited by the works or services financed by the loan agreement, to take all actions necessary to impose and collect the assessments, to assign to the lending agency the assessments as security for the loan and to take all actions within the period of time agreed to by the district and lending agency.

(3) If the lending agency pays over money to the district pursuant to the terms of a loan agreement entered into under this section and the district fails, refuses or neglects to impose or collect the assessments, to obtain or prepare a roll of benefited tracts of land, to assign the assessments or in any other manner to perform as agreed under the loan agreement, the lending agency has the right, at the agency’s election, to apply to Multnomah County Circuit Court for a writ of mandamus, or any other order or writ, to require the district or the directors, employees and agents of the district to perform as agreed to under the terms of the loan agreement. In addition to the assessments imposed under the loan agreement, all costs, charges and expenses pertaining to the issuance and execution of a writ or order under this subsection shall be charged to and collected from the lands subject to the assessments.

(4) Upon the execution of a loan agreement under this section, the district shall file for record a certificate that states the date of the loan agreement, the maximum amount, term and rate of the loan and the recording data pertaining to the recorded order creating the district. The certificate must give notice that all lands within the district determined to be benefited by the construction of the works specified in the loan agreement are subject to the assessments imposed under this section. [2019 c.621 §21]

550.360 Dissolution of drainage or water control district or corporation; transfer of assets and liabilities to district; debt distribution plan; zone committee for continuity. (1)(a) Notwithstanding any other provision of law, the urban flood safety and water quality district may, by resolution of the board of directors, dissolve any drainage district formed and operating under ORS chapter 547, any drainage district organized and operating under ORS 548.005 to 548.120 or any corporation incorporated for any of the purposes listed in ORS 554.020, that is operating entirely within the boundaries of the urban flood safety and water quality district.

(b) Upon the dissolution, the dissolved district or corporation shall transfer, and the urban flood safety and water quality district shall assume, the duties, assets and liabilities of the dissolved district or corporation and continue to furnish the services formerly provided by the district or corporation to the residents of, and owners of property in, the dissolved district or corporation. Such assets include, without limitation, all interests in real property and tangible and intangible personal property, including water rights, uncollected taxes, assessments or other charges levied by the dissolved district or corporation.

(c) The dissolved district or corporation shall be considered annexed by and merged into the urban flood safety and water quality district.

(2) A dissolution under this section may be initiated only by resolution of the board of directors. The board of directors may not consider a dissolution resolution unless and until the urban flood safety and water quality district has sufficient funding from one or more of the means set forth in ORS 550.300 to enable the urban flood safety and water quality district to assume and manage the duties, assets and liabilities of the dissolved district or corporation.

(3) A dissolution under this section becomes effective no later than one year after the date on which the board of directors adopts the dissolution resolution, unless the district or corporation to be dissolved agrees to an earlier dissolution date.

(4)(a) As soon as practicable after the date on which the board of directors adopts a dissolution resolution under this section, the board of directors and the governing bodies of the districts or corporations to be dissolved, or the designated representatives of the governing bodies, shall meet to negotiate a debt distribution plan. A debt distribution plan may provide for any distribution of indebtedness between the urban flood safety and water quality district and the district or corporation to be dissolved.

(b) If the board of directors and the governing bodies do not agree on a debt distribution plan, or if the territory of the district or corporation to be dissolved remains liable under the plan for any portion of the indebtedness outstanding at the time of the dissolution and transfer, the board of directors shall serve as the ex officio board of the dissolved district or corporation for the purpose of imposing and collecting charges or taxes in the territory until all indebtedness of the dissolved district or corporation, including interest, is paid in full.

(c) Before a debt distribution plan may be agreed to under this section, the urban flood safety and water quality district shall obtain consent from all known holders of valid indebtedness owed by the district or corporation to be dissolved or releases based on provision in the debt distribution plan for the payment of nonconsenting holders. The territory within the boundaries of the district or corporation to be dissolved may not by reason of the dissolution and transfer be relieved of outstanding liabilities and indebtedness for which the district or corporation to be dissolved has previously entered into an agreement.

(5) After paying and discharging all debts and obligations or obtaining consent from holders of valid indebtedness or releases from nonconsenting holders, in accordance with the debt distribution plan, the governing body of the district or corporation to be dissolved shall transfer to the urban flood safety and water quality district all assets of the district or corporation to be dissolved.

(6) If requested by the district or corporation to be dissolved, or at the discretion of the board of directors, the board of directors may create a zone committee with members appointed by the chair of the district or corporation to be dissolved to provide for continuity and recommendations with respect to fees, rates and charges, and levels of support and operation, within the territory of the dissolved district or corporation. [2019 c.621 §22; 2022 c.16 §16]

550.370 Notice requirements. (1) Except as provided in subsection (2) of this section, when notice is required to be given by publication under ORS 550.150 to 550.410, the notice must be published in a newspaper of general circulation within the boundaries of the urban flood safety and water quality district, or if there is no such newspaper, in a newspaper of general circulation in Multnomah County.

(2) This section does not apply to provision of notice for an election. [2019 c.621 §23]

550.380 Election laws applicable. (1) ORS chapter 255 governs the nomination and election of the board of directors of the urban flood safety and water quality district and the conduct of all district elections.

(2) The electors may exercise the powers of the initiative and referendum regarding a district measure in accordance with ORS 255.135 to 255.205. [2019 c.621 §24]

550.390 Waterway pollution; penalty. (1) A person commits the crime of waterway pollution if the person:

(a) Throws, dumps or otherwise places, or permits to be thrown, dumped or otherwise placed, any rubbish, refuse or any other matter or object in any ditch, lateral, canal, slough or other waterway or conduit used in connection with any works or waterway under the control of the urban flood safety and water quality district;

(b) Befouls or pollutes, or allows to be befouled or polluted, any waterway or conduit described in paragraph (a) of this subsection; or

(c) Obstructs, or allows to be obstructed, in any manner, any waterway or conduit described in paragraph (a) of this subsection.

(2) Waterway pollution is a Class C misdemeanor. [2019 c.621 §25]

550.400 Civil liability for remediation costs. (1) Regardless of any criminal prosecution or the result of a prosecution under ORS 550.390, the urban flood safety and water quality district or any other person injured by a violation of ORS 550.390 may bring a civil action to secure an injunction, damages or other appropriate relief against any and all persons whose actions caused the injury to a waterway described in ORS 550.390 owned or controlled by the district or person.

(2) Upon prevailing in such civil action, the plaintiff may recover damages measured by the total costs of remediating the injury actually incurred by the district or the person that owns or controls the injured waterway. [2019 c.621 §26]

550.410 Additional cause of action for certain impairments of district works. (1) As used in this section, “actionable condition” means a condition on public or private property that obstructs, clogs, damages, injures, reduces the efficiency of, impairs the usefulness of or otherwise has a negative impact on the district’s works.

(2) In addition to the remedies provided under ORS 550.390 and 550.400, when an actionable condition exists, the district may bring a civil action in Multnomah County Circuit Court against the person or persons responsible for creating or maintaining the actionable condition.

(3) The civil action may include a request for one or more of the following remedies:

(a) Injunctive relief;

(b) Authority to enter onto the property to abate the actionable condition; and

(c) Remediation costs and damages that arise from the existence or abatement of the actionable condition. [2022 c.16 §18]

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