SANDY, OREGON THURSDAY, JULY 22, 1982
Vol. 72 No 29
(I'SPS tMl-lMtP
Single Copy 25«
City feels
pinch on
building
Like hunting for a needle in a haystack, these youngsters scoured the straw for money at the annual Veterans of Foreign Wars picnic last Sunday at Obrist's Park.
Septic tanks OK’d for lots with sewer on way
The Sandy Q ty Council firmed up
its policy Monday night for construc
tion on septic systems, but two coun
cilors feel the city may have
overstepped its bounds
approval of a septic system by
Clackamas County Soils Department
and participation by the homeowner
in construction needed to bring the
sewer system to the property.
By a 4-2 vote, council gave its ap
proval to a -set of conditions that
would allow constructon on a septic
system, even if sewer service is im
pending One condition would require
an agreement to connect to the sewer
system when it is available in the
future
City Councilor Vern Richards
thinks the policy places an undue
hardship on the property owner who
is trying to develop his land.
In addition, the city would require
“ I think it’s a bad way to say to the
property owners of the town that this
is the only way we will allow you to
utilize your land. . . without any real
rationale behind it,” he said
Richards said he favors putting the
criteria in the form of an ordinance
or resolution, rattier than a policy.
City Manager Roger Jordan said
“ participation in the construction”
means that the property owner won’t
remonstrate against the city at the
time of the sewer construction.
Councilor Tim Ward, the other
dissenting voter, said policies have a
tendency to alienate the public even
if they are universally applied
The policy will apply only where
there is an existing lot of record and
no further divisions of property or
subsequent development on septic
tanks would be permitted, unless the
conditions are such as to meet the ci
ty ’s development standards for tran
sitional areas where sewer service
will be available in a short number of
years.
The two properties that have been
allowed to hook up to the septic tank,
rather than waiting for the sewer,
are both in the Sandy Heights area.
Sewer service will be available to
that area once the line connecting the
Papa Bear subdivision and the latter
phase of the Knollwood Estates pro
ject is completed to the city’s trunk
line running up Tickle Creek.
This area differs from the North
Bluff area, because sanitary sewer
service can be expected to be
available within a few years' time,
according to City Planner Don
Wilson
«
Jordan said the purpose for
establishing the policy, rather than
passing an ordinance, is to let
developers know the standards of the
city so there will be no surprises
when they apply for permits.
Mountain water stystems ready to change hands
by M IC H A E L P. JONES
Post Correspondent
The United States v. the Alder
Creek Water Company took a major
step last week toward resolving some
issues on a growing list of problems
that has plagued water users the last
few years.
At a hearing before U.S. District
Magistrate George E. Juba, water
users packed the courtroom and
learned that Gene Ginther will be
relieved of his duty as federal
receiver of the water company on
Aug. 1.
The receivership will be transfered
to the Alder Creek Water Authority,
the board of the newly-created water
districts serving the Alder Creek-
Barlow, Sleepy Hollow, Country
Club, Riverside and Wildwood Annex
systems
At that time Ginther will turn over
to the board all records of accounts,
records of each water system and the
company’s assets and property that
was acquired when he was appointed
receiver in September 1980
The W ater Authority w ill be
responsible for ad m in is tra tio n ,
management and operation of the
five water systems, including com
pliance w ith federal and state
guidelines.
Federal court will require the
Authority and the U.S. Environmen
tal Protection Agency to have agreed
upon a timeline by Aug. 15 that will
be followed to bring the five water
systems up to the requirements of the
Safe Drinking Water regulations.
Engineering plans, specifications for
improvements to each water system
and a method for financing will have
to be completed
The court ordered that Riverside,
Wildwood Annex. Country Club and
Sleepy Hollow systems be in com
pliance with the Safe Drinking Water
Act by Nov I, 1983
Alder Creek-Barlow, which is
reportedly in the worst condition of
all the systems, has until Sept 15,
1984 to be in compliance.
Prior to the hearing the attorneys
representing the water users, Gin
ther, the EPA and the federal court,
reached agreement on the ownership
of the company's five systems and
the money reportedly owed the
receiver for operating the company
the past two and a half years.
Ward Greene, Ginther’s attorney,
told the court his client has agreed to
be paid "a much lower figure” than
the $157,000 that he claims the water
users owe him for his services.
Without disclosing the purchase
amount agreed upon by Ginther and
the Water Authority, Greene said the
water users will pay the money to the
court which will then dispense the
money to his client.
“ We are paying solely for the
assets of the company," said at
torney Edward Sullivan, represen
ting the Water Authority,“ not for the
receiver’s fees.”
Still the question of the legality of
such a move and its effects on the
company’s former operator, Gerald
“ Red” Bennett, is not settled Ben
nett’s attorney claims Ginther “ has
no such authority to sell it."
Portland attorney, Brian O’Brien,
said his client prefers to see the
receivership of the company in the
hands of the people rather than
G intler, but neither have ownership
rights He charged that he could
“ find no authority for Mr. Ginther to
change the trust outside of the
physical operation of the district.”
Juba told O 'B rie n th a t the
receivership will change hands and
he will have 10 days to appeal.
O’Brien also accused the EPA and
Ginther of “acting in concert” to
secure ownership of the company
from the first day he was made
receiver. He accused Ginther of a t
tempting to carry out this objective
by charging a $10,000 to $15,000 mon
thly fee for operating the district.
Greene, speaking on behalf of Gin
ther, denied the charges.
“ M r. Ginther has, at all times,
acted within the order laid upon him
(by the federal court),” said Greene.
“The very fact we’re here today and
very happily here to transfer the
r e c e iv e r s h ip of the d is t r ic t
demonstrates this.”
Juba said he “agreed in principal"
with the transfer of the company’s
receivership, adding his "prim ary
intension was to turn over the
receivership and get it into the hands
of the users of the systems," after the
new districts were formed.
“ I t ’s unfortunate the government
has to get involved in these things,"
said Juba “ (Governments) are ask
ed to run schools, prisons and, in this
case, water systems. The court
d o e sn ’ t know a n y th in g about
operating water systems."
Contract question finds architect, school at odds
by MICHAEL P. JONES
P ost C orresp ond en t
Welches School District and Glyn
brook Construction Company this
week entered arbitration over con
struction problems involving the $1.4
million school addition to Welches
Grade School
The arbitration proceedings in
volve a disputed $100,000 which the
Salem-based construction company
claims the district owes for construc
tion modifications That figure in
cludes a $60,000 penalty fee the
district imposed on them for con
struction delays.
The district maintains that it is
withholding $200 per day in li
quidated damages from Glynbrook
for not having the three-wing addi
tion completed by Nov. 34, I N I .
Although neither party would
answer questions concerning the
issues before the arbitrator, the hear
ing is expected to focus on a 26 per
cent contingency fund agreement
between the architectural firm ,
Richard T. Gessford A Associates of
Portland, and the school district.
In that agreement, the school
beard signed an amendment to the
originel $188,008 contract, which
allowed Geoeford to administer a
conunfency tuno which
was to cover change orders in the
project, soil and conrete tests, survey
work, legal fees, a conditional-use
permit fee, plan check fees, pencil
sharpeners, flags and toilet paper
holders and extra expenses that may
arise
Gessford told the board that if he
saved the district money, at the end
of the project the district and his firm
would split the savings. His firm
would receive 25 percent “ for ser
vices and project control;” the
district would keep 75 percent
From that agreement three other
issues emerged which will be dealt
with in the proceedings They are the
lack of a general contractor on the
job site, the presence of organic fill
beneath the excavated building site
ant. the absence of soil tests which
would have revealed the presence of
the organic material,
By agreeing to the contingency
contract, the board thought Gessford
would act as the project's general
contractor, according to Superinten
dent Kenneth Blackburn. That would
have made the architect responsible
for any problems that arose on the
Job
Gessford, on the other hand, said
that the contract only meant he was
going to try and save the district
money.
The architect and board agreed to
the contract amendment Oct. 11,
1979
Tapes from that meeting reveal the
c o n tin g e n c y
fund
deal
was
Gessford’s idea He told the board
there would be “always extras and
additional services that come up
(d uring construction), such as
testing, and on and on.”
He said the board had asked him
earlier to prepare an amendment to
the contract which would cover any
extra costs.
“ ‘You prepare a contract for os
with that stuff included,'” Gessford
recalled the school board telling him.
“ We don’t want any extra bills We
don’t want a bunch of these chan"e
orders. We want you to cover the
whole merryanne
Gessford said the board may have
been joking but he took them as
serious and “ felt obligated to attempt
to put that kind of package together .”
He told the school board that such a
contract would be tough to do, but
after talking it over with his partner,
I^eon Hamblin, they decided to “to
take the risk.”
“ The discussion that we had that
night was that you do this and we ll
set up a contingency fund,” said
Gessford “ You take it and you ad
minister the contracts. If you can
save us some money we ll split it with
you.
" I think the discussion was 50-50,
but that's not fair We feel that if we
got 25 percent of that we’d be doing
super It's more than 'air and we’d
even negotiate that.”
Alan Jensen, then chairman of the
board, asked Gessford if he felt com
fortable taking on such a contract
and w ith o u t fe e lin g he was
“ hanging“ himself
Gessford said he felt comfortable
because his firm had had enough ex
perience administering projects in
that way. His firm had sim ilar con
tingency agreements in McMinnville
and two school building projects in
Sisters,
“ What it does (the 25 percent con
tract», it forces us to be darn careful
of our original bond,” explained
(iessford. “ And that’s the way you
get the best price for /o u r project
“ It puts a monkey on our back to
have great cost control. We’re really
gonna be on top of the thing We’re
still gonna have to answer to the
school board, of course We’re not
gonna waste anybody’s money, but
the more we can save, the better off
everybody ”
If the board didn't agree with the
revised contract, Gessford told the
board they would have to stick to the
terms of their original contract. That
would mean that every time a change
order was needed he’d have to give
the contractor a field order to fill out
When he got the field order back
showing the extra cost, then he'd
prepare a change ordtr and the
board would have to call a m "ting to
take action before anything could be
done.
This, he warned the school board,
could slow down the project’s con
struction and problems could not be
dealt with immediately.
‘“ If you don't go for this amend
ment, it isn't gonna change our a t
titude about the job,” ' Gessford told
the board. “ We're still gonna bust
our butts to do the best job possible
because this is how we get the next
job somewhere else '”
The board unanimously agreed to
the terms of the contract.
In return, Gessford would receive
25 percent of the money he saved the
district which could amount up to an
estimated $65,000
“ I t ’s a heck of a contract,” said
Gessford at the time of the contract
signing “ I ’ve always wanted to do
one like it but I ’ve never had an op
portunity to even talk to a board
about it It's a challenge on one hand,
but it could be a real exciting
project.”
With housing starts in a slump the
“ little things" are keeping the Sandy
Building Department busy, but the
outlook for the rest of the year isn’t
bright.
“ We’ve been busy with remodels
and additions,” Building Official
Tom Day said. “These little things
just keep you going.”
A recovery, however, “ is not going
to happen until the prime interest
rate comes down to a stable position
and stays there,” he said.
The effect of the prime interest
rate is reflected in Sandy's construc
tion starts.
Halfway through 1982, the Building
Department has handled $914,571 in
total valuation. Doubled, that would
fall short of the high-water mark the
department established in 1980 when
more than $6.1 million valuation was
handled by the department.
Last year, the department handled
nearly $5 million for the city.
Day, who recently prepared a
report on the department’s progress
during his nine and a half years as
building official, remembered 1980 as
a big year. Tw enty-eight con
dominiums were built at Park Crest,
the Mormon Church built a new addi
tion and some larger projects were in
the works
This year permits for mobile
homes in Knollwood Estates have
“ been carrying us,” Day admitted,
but even that could be coming to an
end as just 15-16 vacancies remain.
But things may not necessarily be
all that bleak
Last month, the city issued its first
two housing permits since March and
Day is optimistic.
“ Maybe the building will pick **p a
little , next month the post office may
be in for permits,” he said.
“ I t ’s kind of amazing we generated
over a quarter million dollars in per
mit fees,” he said “That never even
cost the taxpayers a dim e.”
Also shocking to Day is that the
department has handled more than
$31 million worth of valuation.
If the housing industry comes back
to life in the spring, as some experts
are saying it will, then the past nine
years will be just the foundation of a
growth pattern that local officials ex
pect to skyrocket Sandy’s population
to some 15,000 by the turn of the cen
tury.
City tells
lot owners
‘Cut weeds1
The city is getting tough on weedy
lots,
Monday night, the Sandy City
Council declared 86 lots in the city to
be public nuisances
And at its next meeting the council
is expected to act on a proposed or
dinance that will put more teeth into
the fight against the eyesores and
fire hazards
By declaring the lots nuisances, the
council gave the go-ahead to City
P la n n e r Don W ilson to send
registered letters to the property
owners advising them to clean up
their briar patches or the city will do
it for them—and put a lien on the pro
perty until the clean-up fee is paid.
Wilson and Building Official Tom
Day have spent the past two months
surveying the weed situation
But, this late in the year the
damage may already be done So, at
the suggestion of Councilor Jim Duff,
City Attorney Jack Hammond will
prepare an ordinance that wouid set
a date when the weeds would have to
be eliminated and kept eliminated
during the summer months
That, it is believed, will make
policing the growing weed nuisance
easier
Index
SECTION 1
Keeping Posted ......................... 2
Senior Center New«...................3
Inside Business................... . . . . 3
O b itu a rie s ............... r ................3
Inside the Church.................. .1
Editorial, Opinion ................... •
Sports, Recreation................. 7-1
SECTION II
Area News.................................. I
Hoodland Happening* ............1
SECTION HI
Classified Ada.......... Inside Tab
T V Revue.................. Inside Tab