Authorize the City to acquire certain permanent and temporary property rights necessary for construction of the 3260 SW Upper Drive north to 3139 SW Upper Drive project through negotiation or exercise of the City's eminent domain authority
The City of Portland ordains.
Section 1. The Council finds:
- The City may exercise the power of eminent domain pursuant to Section 9-108 of the City Charter and Oregon Revised Statute (ORS) 223.005 through 223.105, when deemed necessary by the City Council to accomplish public purposes for which the City has responsibility, provided that power is exercised in accordance with the eminent domain procedures established by ORS Chapter 35 (Eminent Domain; Public Acquisition of Property), including those procedures that apply to notification, valuation, negotiation, relocation, and early possession, if necessary.
- The Water Bureau has the responsibility to provide high-quality water and stewardship of the City's water infrastructure, including implementation of safety improvements which benefit City employees and the general public.
- The Water Bureau project known as the 3260 SW Upper Drive north to 3139 SW Upper Drive project (Project) will replace an existing main that is over 80 years old, is in poor condition and has a history of leaks.
- The Project has been planned in accordance with an appropriate engineering standard for the construction, maintenance, and improvement of the City's water infrastructure in a way that minimizes property impacts and protects the health and safety of City employees and the public. The Project has been planned, designed, and located in a manner that is most compatible with the greatest public good and least private injury.
- To construct the Project, it is necessary for the City to acquire the permanent and temporary property rights described and depicted as Exhibit A.
- The Subject Property Interests are needed and required for the public purpose of completing the Project. Acquisition of the Subject Property Interests is in the public's interest.
- All affected property owners have been contacted and informed as to the City's need for certain private property rights related to completion of the Project. All affected property owners have been made aware of the reading of this agenda item.
- It is necessary for the preservation of public health, economic well-being, public safety, and public welfare of the City and members of the public served by the City that the City commence the acquisition process described herein and that is necessary for the Project.
- The cost to acquire the Subject Property Interests will be determined by appraisals that will comply with the requirements of ORS Chapter 35 (Eminent Domain; Public Acquisition of Property).
- Funds are available in the Water Fund in the FY 2025-26 Budget and will be requested in the FY 2026-27 Budget as needed.
NOW, THEREFORE, the Council directs:
- The above recitals and findings form an integral part of the Ordinance and have the same force and effect as if they were adopted as an ordinance. The foregoing statement of authority, purpose and need are reaffirmed herein. It is necessary for the preservation of public health, economic well-being, public safety, and public welfare of the City and members of the public served by the City that the City commence the acquisition process described herein and that is necessary for the Project. The City is authorized by law to acquire the Subject Property Interests, and the Project has been planned, designed, located and will be constructed in a manner that will be most compatible with the greatest public good and least private injury.
- Subject to payment of just compensation and the procedural requirements of Oregon law, the Water Bureau Director or designee, or the City Attorney, are authorized to acquire the Subject Property Interests for the Project through negotiation or through the exercise of the City's eminent domain authority to the extent negotiations fail, as discussed herein, within available Project budget funds.
- The Water Bureau Director or designee, or the City Attorney, may negotiate and authorize payment of just compensation and are further authorized to enter into agreements with owners and/or interest holders of the Subject Property Interests within available Project budget funds.
- The Water Bureau Director or designee, or the City Attorney, are further authorized to offer owners and/or tenants of the Subject Property Interests the relocation benefits they are entitled to under federal and Oregon law, within available Project budget funds.
- The power of eminent domain is hereby authorized with respect to each of the Subject Property Interests, as needed. Each is acquired subject to payment of just compensation and subject to procedural requirements of Oregon law.
- The Water Bureau's staff and the Office of the City Attorney are authorized to attempt to agree with the owner and other persons in interest as to the compensation to be paid for each Subject Property Interest, and, in the event that no satisfactory agreement can be reached, the City may commence and prosecute such condemnation proceedings, and hereafter with no further action on the part of the City, as may be necessary to determine just compensation or any other issue appropriate to be determined by a court in connection with the acquisition.
- This authorization is not intended to expand the jurisdiction of any court to decide matters determined or determinable by the City Council.
- The Water Bureau is authorized to determine the continuing necessity or propriety of the acquisition authorized by this Ordinance, its quantity, quality, or locality, and to reduce or abandon any Subject Property Interests.
- The Water Bureau Director and the City Attorney are authorized to retain counsel necessary to assist with pre-condemnation work, negotiations with the owners or interest holders of the Subject Property Interests, and condemnation litigation, if necessary.
- Upon trial or any suit or action instigated to acquire the Subject Property Interests, the attorneys acting for, and on behalf of the City, are authorized to make such stipulation, agreement, or admission as in their judgement may be for the best interest of the City and to take possession of the Subject Property Interests as appropriate in their judgement, without further Council approval.
- In accordance with ORS 35.265, the Water Bureau is hereby authorized to create a sub-fund in the amount estimated to be the just compensation for each interest in the property which, if necessary, shall be deposited with the clerk of the court where an action is commenced.
- The Water Bureau Director or City Auditor or their designees, are hereby authorized to pay for the resulting obligations, agreements, or relocation benefits for the Project from the Water Fund when demand is presented and approved by the proper authorities.
- The costs incurred in connection with the acquisition authorized herein will be charged to the Water Fund, FY 2025-2026 Budget.
Exhibits and Attachments
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
The purpose of the proposed legislation is to authorize the City of Portland to acquire certain permanent and temporary property rights, as described in Ordinance Exhibit A, for the replacement of an existing main with slightly larger mains serving customers in a private section of SW Upper Drive (3260 SW Upper Drive north to 3139 SW Upper Drive Project). The existing main has a history of leaks and is in poor condition. The main is over 80 years old and it needs to be replaced. The Project will replace the existing 2-inch galvanized water main with 4-inch and 6-inch water mains made from ductile iron. The project will also renew eight (8) services, transfer one (1) service, and replace an obsolete fire hydrant with one that meets current standards.
There are 10 property owners the Water Bureau needs to acquire property rights from. Property rights will include 14 permanent easements and 5 temporary easements on or adjacent to the existing private drive. The easements are needed for the construction of the Project.
Financial and Budgetary Impacts
The cost of acquiring the needed property rights will be determined by the Water Bureau during the Eminent Domain process. Funds are available in the Water Fund in the FY 2025-26 Budget and will be requested in FY 2026-27 Budget as needed.
The proposed legislation will not create, eliminate, or re-classify any positions now or in the future.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
We all benefit from access to safe, reliable water—the most vulnerable in our communities benefit most of all. The property acquisitions will allow the Water Bureau to continue making long-term investments to protect public health and keep water safe and abundant for the households and community affected by the Project.
In addition to public health benefits, the Water Bureau is committed to advancing equity goals on every project delivery contract, including professional services and construction delivery contracts.
For this Project, all affected property owners have been contacted and informed as to the City's need for certain private property rights related to completion of the Project. All affected property owners have been invited, by mailing, to attend the reading of this agenda item.
- The Water Bureau has and will:
- Conduct Equity Impact Assessments using demographic and economic data to understand the characteristics of the people that will be most affected (positively and negatively) by the proposed actions
- Spatially evaluate the economic, social, and environmental impacts to communities of color and low-income households
- Engage affected communities and households in planning, decision-making, and evaluation
- Apply mitigation hierarchy principles in the execution of this policy:
- Avoid adverse impacts to low-income households and communities of color
- Minimize the duration, intensity, and significance of adverse impacts
- Restore any degradation or damage that would lead to a loss of household and/or community well-being
- Compensate households and communities for relinquishing their property rights in a way that does not lead to disparities in outcomes on the basis of race, color, national origin, or disability status
100% Renewable Goal
Not applicable.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
The bureau budgets project expenses for this ordinance in WBS W02396, which is a subset of the bureau's Distribution program in the bureau's five year Capital Investment Plan. The Distribution program of the bureau's CIP has even subprograms, totaling $55.9m of budgeted resources. While the cost of the negotiation of eminent domain process is unknown, the bureau has accounted for these expenses in its budget.
Document History
Document number: 2025-405
President's referral: Finance Committee