In 2020 and 2021, city staff and elected officials met with NCPRD staff, along with representatives from the NCPRD board of directors (who are also the Clackamas County Commissioners) to negotiate intergovernmental agreements (IGAs) for funding and constructing for phase 3 of Milwaukie Bay Park. The city quickly adopted these agreements in November 2021, with a June 2022 sunset clause to avoid price escalations. The board of directors removed the funding IGA from its agendas three times before approving it in March 2022, contingent on NCPRD and the city negotiating a new overall IGA that would change the terms by which the city could depart the parks district.
The existing IGA stipulates that the City of Milwaukie could choose to leave the district by a vote of City Council pursuant to ORS 222.524. The NCPRD board of directors contends this is no longer a valid term, and that ORS 198 is the applicable statute. The process defined in ORS 198 requires a petition to the board of directors to withdraw from the district.
The City of Milwaukie filed a validation petition with the court to provide a legal ruling on which process applies, ORS 222 or ORS 198. On May 16, 2023, a county circuit judge ruled that the withdrawal method agreed by the city and NCPRD in their 2008 IGA was beyond their legal authority under state law. The judge’s ruling states that the NCPRD board of directors must agree to allow Milwaukie to withdraw and refer the question to voters district wide. On June 21, 2023, the City of Milwaukie appealed the circuit judge’s decision to the Oregon Court of Appeals. The city is currently awaiting the decision of the Court of Appeals.
The Validation Petition is limited in scope to the very narrow question of whether the language in Section VI of the 2008 master IGA is valid. The petition does not reference Milwaukie Bay Park or a new master IGA, and a decision that affirms the 2008 language will not by itself result in the city’s departure from the district.