Milwaukie presses North Clackamas parks district after three‑month delay; city manager discloses 30‑year utility underbilling

Milwaukie — City Manager Emma Sager told the Milwaukie City Council on July 7 that negotiations over two intergovernmental agreements (IGAs) with the North Clackamas Parks and Recreation District have been paused by the district for three months to allow its advisory committee additional review.

Sager summarized 18 months of talks and said the agreements would transfer control of remaining design and development for Milwaukie Bay Park Phase 3 to the city if approved. She also outlined “gives and gains” in the proposed deals: Milwaukie would take on some capital maintenance obligations (including an estimated roof replacement at the Milwaukie Community Center) and the task of raising the remainder of capital funds for Phase 3, which staff estimate at about $10 million; in return, the district would assign roughly $3.3 million in zone‑1 system development charges (SDCs) and other local shares to the city for park work.

The presentation also disclosed a separate and consequential finding from a city utility audit. Sager said city staff discovered that two NCPRD‑operated properties inside Milwaukie — Milwaukee Community Center and North Clackamas Park parcels adjacent to Bonaventure senior living — had not been billed on Milwaukie utility accounts for stormwater, wastewater and certain transportation charges for more than 30 years. "We estimate that the underbilling means probably more than $1,000,000 of money that should have been collected over those 30 years was not from the district," Sager said. The city began billing those accounts in August 2025 after West Clackamas County stopped billing them in July 2025, she said.

Sager acknowledged that the city should have communicated the change more proactively and said she has apologized to county staff and updated communication procedures. To avoid the utility dispute holding up the park agreements, she said staff proposed language that would revert NCPRD accounts to June 2025 rates for a limited period while negotiations continue, with a target deadline of July 2027 to complete rate discussions.

Public commenter Stefan Lashbrook urged the council to take a harder bargaining stance, including a proposal to place the city’s SDC revenues for NCPRD in an interest‑bearing escrow account to compel action. "I think it's time for the city to do it — play hardball," Lashbrook said.

Council members expressed frustration that the district delayed a decision after long negotiations and public testimony; several noted that the district advisory committee meets the following evening and could offer a recommendation. Council members also emphasized the need for transparency and said they want the underlying data behind the district’s calculation that it had been subsidizing Milwaukie parks.

Next steps: staff will post the city’s response document to the public meeting record, the DAC will consider the agreements at its meeting, and the council will revisit the issue in subsequent meetings if needed.