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<br />D. <br /> <br />Liti~ation re1arding Bethel Water District--Assistant Manager noted <br />in t e early 960's the Bethel Water District was absorbed by EWEB <br />by a contract that said EWEB would continue to provide service. A <br />map was distributed outlining the area in concern. In an effort <br />to clarify the boundaries to be served, EWEB, and the Lane County <br />Boundary Commission have been involved in litigation. The issue <br />involves whether or not the contract and its obligations require <br />water service no matter how the land is zoned or used. Land in <br />concern was west of Highway 99, which is agricultural in use), and <br />there are a number of City policies that have changed since the <br />contract was signed. Staff feels there is need to seek some better <br />balance between the contract and general City policies. Staff was <br />asking Council's authorization to seek a modification of the Court <br />of Appeals' decision. Cost would be $3,000 to $5,000 in attorney <br />time. <br /> <br />. <br /> <br />There were several options open for Council: As separate parties, <br />seek a rehearing; address the issue in the 1990 Update to ensure <br />the land in question remains in agricultural use; or City could <br />seek administrative review of Lane County actions regarding land <br />use. He said none is exclusive and all three could be pursued simul- <br />taneously. If the Court of Appeals' decision remains, the City's <br />authority to limit water extension might be reduced. Thus staff <br />would like to seek modication of the opinion and perhaps pursue <br />insurance that the land remain agricultural in use. <br /> <br />Mr. Delay wondered what EWEB had been failing to argue that was ~ <br />important to the City. Assistant Manager said EWEB feels bound ~ <br />and liable under the contract should property owners sue if they <br />fail to provide water service in the entire district. Lane County <br />Boundary Commission argued that it has State-mandated authority to <br />control extension of water services. The court decision was in favor <br />of EWEB. However, the City wishes the court to clarify for it the <br />bounds of the contract versus various City policies, so the Citj is <br />not in a position of extending water service to agricultural land. <br />The language in the present contract seems to say that any part <br />of that land has to be served at any time. There needs to be modi- <br />fication of such broad language for liability, with a balancing <br />of interest to preserve the contract rights but protect the author- <br />ity of the City Council over water extension. This would be the <br />most direct way to accomplish such, rather than on a case-by-case <br />basis. He said Council's practice of controlling urbanization <br />included the water extension policy and land-use controls. The <br />decision, as it stands, would remove the water extension policy <br />from having any application within the confines of the Bethel Water <br />District. <br /> <br />- <br /> <br />5/24/78--2 <br /> <br />~o <br />