(a) A domestic water supply district organized under ORS chapter 264.

(b) A parks and recreation district organized under ORS chapter 266.

(c) A sanitary district organized under ORS 450.005 to 450.245.

(d) A rural fire protection district organized under ORS chapter 478.

(2) When a city evaluates or amends the urban growth boundary of the city under ORS 197A.312, the city shall notify:

(a) Each district that has territory within the study area established under ORS 197A.320.

(b) Each county that has land use jurisdiction over any portion of the study area.

(3) The notification must:

(a) Include a map showing the study area; and

(b) State that, in order to execute or amend an urban service agreement concerning the study area, the district shall respond to the notice within 60 days of the date the notice is mailed if the district enters into or amends an urban service agreement concerning the study area.

(4) An urban service agreement executed under this section must satisfy the requirements of ORS 195.065 (1)(a) to (f). When a city and a district execute an urban service agreement pursuant to this section, the city and the district are not required to participate in the negotiation of an urban service agreement under ORS 195.065 to 195.085.

(5) Before executing the urban service agreement, the city and the district shall consult with community planning organizations that are recognized by the governing body of the city and whose boundaries include territory in the study area that may be affected by the urban service agreement.

(6) If the special district chooses not to negotiate an urban service agreement or does not respond to the notice within 60 days, the city may withdraw from the service territory of the district any portion of the study area that is included within the urban growth boundary of the city and annexed to the city.

(7) If the district responds in writing to the notice within 60 days and requests to execute an urban service agreement for the study area with the city, the city and the district shall meet to develop the urban service agreement within 60 days after the district responds.

(8) If the city and district are unable to develop the urban service agreement within 180 days after the date of the first meeting, the city or the district may require mediation. If mediation is required, the city and the district shall each designate an individual to work with the city and the district to develop an urban service agreement. The city and the district are each responsible for the costs of the mediator it selects.

(9) If the city and the district are unable to develop the urban service agreement after an additional 180 days, the city or the district may require arbitration. The mediators selected under subsection (8) of this section shall jointly select a third individual, and the three individuals shall constitute an arbitration panel to develop the urban service agreement. If the mediators are unable to agree on the third individual, the Director of the Department of Land Conservation and Development shall select an individual from a list of qualified arbitrators provided by the Land Conservation and Development Commission. The city and the district shall bear the cost of the third individual equally. The arbitration panel:

(a) Shall consider the provisions of ORS 222.460, 222.465, 222.510 to 222.570, 222.575 and 222.580; and

(b) May not:

(A) Require the city or the district to pay the other party as part of the urban service agreement unless:

(i) The urban service agreement requires a transfer of physical assets, in which case the urban service agreement may require the payment of fair market value for the assets; or

(ii) A party has offered a payment as part of prior negotiations and the arbitrators incorporate all or a portion of the negotiated payment in the urban service agreement;

(B) Prevent a city from including land within the urban growth boundary of the city; or

(C) Prohibit a city from annexing territory that is within the urban growth boundary of the city.

(10) A city may not withdraw territory from the service territory of a district:

(a) Unless the district does not respond to the notice required by subsection (2) of this section; or

(b) Until the city and the district develop an urban service agreement under this section.

(11) Decisions related to the execution of an urban service agreement under this section are not land use decisions subject to the jurisdiction of the Land Use Board of Appeals. [2013 c.575 §6; 2015 c.27 §20]

Note: See note under 197A.300.