The activity of a corporation for drainage or flood control organized under ORS 554.005 to 554.340 is deemed to be an urban service, as defined in ORS 195.065, if the corporation:
(1) Is located in a county that has a population greater than 700,000; and
(2) Operates a flood control project as defined in ORS 547.057 located within the urban growth boundary established by Metro or within the incorporated boundary of a city.