(1) An activity of a drainage district is deemed to be an urban service, as defined in ORS 195.065, if the drainage district:
(a) Is located in a county that has a population greater than 700,000; and
(b) Operates a flood control project located within the urban growth boundary established by Metro or within the incorporated boundary of a city.
(2) As used in this section, “flood control project” means a system or method, including, but not limited to, canals, ditches, dikes, levees, revetments and floodwalls, for:
(a) The control, diversion, conservation or abatement of floodwater, or of an excessive or unusual accumulation of water, in a natural or artificial body of water; or
(b) The protection of life and property against danger, menace, injury or damage resulting from floodwater, or an excessive or unusual accumulation of water.