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Home My WebLink About99-044 Interlocal Agrrement to Negotiate Electric Franchise Agreement RESOLUTION#99- 0 qq A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND AUTHORIZING THE CITY MANAGER TO SIGN AN INTER-AGENCY COOPERATION AGREEMENT BETWEEN THE CITY OF PORT TOWNSEND, CITY OF BREMERTON, CITY OF OLYMPIA AND BAINBRIDGE ISLAND TO SHARE THE COSTS OF NEGOTIATING A NEW ELECTRIC FRANCHISE AGREEMENT. WHEREAS, it is in the public interest to assure competitive electric rates and reliability of power supply for the citizens of each municipal signatory to this agreement; WHEREAS, each municipal signatory to this agreement desires to improve electric service and programs including street lights, vegetation management, city government power costs, and reliability of power service; WHEREAS, the electric power franchise of each municipal signatory to this agreement either has already expired or will soon expire; WHEREAS, the electric utility industry is undergoing substantial rapid and fundamental change as a result of ongoing deregulation efforts by various legislative bodies and regulatory agencies; WHEREAS, it is imperative to create credibility during power franchise negotiations through the use of experts; WHEREAS, it would be beneficial for a group of cities to engage in this investigation jointly; and WHEREAS, RCW 39.34 permits governmental entities to enter into interlocal agreements to carry out tasks in this regard, NOW THEREFORE, Be It Resolved, that the City Council of the City of Port Townsend authorizes the City Manager to sign an Inter-Agency Cooperation Agreement,in substantially the same form as attached, with the City of Olympia,the City of Bainbridge Island and the City of Bremerton with regard to negotiating a new electric franchise agreement. Adopted by the City Council of the City of Port Townsend and signed by the Mayor this 16th day of August, 1999. Forrest Rambo, Mayor ATTEST. AI' D S FORM. (za Pamela Kolacy, City Clerk im by ' .,U p ah , ity Attorney CM:C:\COUNC[L\RESOLUTNGENERAL\PSE.W PD INTERLOCAL AGREEMENT ELECTRIC FRANCHISE NEGOTIATION GROUP WHEREAS, it is in the public interest to assure competitive electric rates and reliability of power supply for the citizens of each municipal signatory to this agreement; WHEREAS, each municipal signatory to this agreement desires to improve electric service and programs including street lights, vegetation management, city government power costs, and reliability of power service; WHEREAS, the electric power franchise of each municipal signatory to this agreement either has already expired or will soon expire; WHEREAS, the electric utility industry is undergoing substantial rapid and fundamental change as a result of ongoing deregulation efforts by various legislative ,bodies and regulatory agencies; WHEREAS, it is imperative to create credibility during power franchise negotiations through the use of experts; WHEREAS, it would be beneficial for a group of cities to engage in this investigation jointly; and WHEREAS, RCW 39.34 permits governmental entities to enter into interlocal agreements to carry out tasks in this regard, NOW, THEREFORE, it is understood and agreed as follows: 1. The undersigned cities ("Group") hereby enter into this. Interlocal Agreement ("Agreement")for the purposes set forth herein. 2. The Group shall meet as often as necessary to investigate issues related to electric power franchises, electric utility deregulation, electric franchise negotiations, and the possibility of service by alternate electric service providers. 3. The Group may engage one or more consultants to cavy out its purposes. The Scope of Work for the consultant(s) presently retained by the Group is attached as Exhibit"AA and incorporated by this reference. The City of Port Townsend will act as Lead Agency for this and related purposes. ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 1 4. By signature below, each member of the Group agrees upon the financial contribution by each city to costs of this investigation, and specifically to the proportionate costs for the consultant doing the work identified on Exhibit "A," as specified in the Budget, attached as Exhibit "B" and incorporated by this reference. Any further expenditures by the Group will be agreed upon in advance. 5. Any city may withdraw from the Group at any time upon written notice, provided it becomes current as to any financial contribution previously agreed upon. 6. A new city may become a party to this Agreement by signing a facsimile hereof and agreeing to assume its portion of costs as set out in Exhibit"B," and agreeing to pay a latecomer's fee as agreed upon by the Group. 7. Each city shall assume liability for and defend, indemnify, and hold harmless the Group and each other city in the Group from and against any claim or suit made against such indemnifying city arising out of its own acts or omissions. In the event of a claim or suit against the Group or a city in the Group arising out of actions taken by or on behalf of the Group, the Group shall jointly defend against such claim or suit and shall agree upon fair and equitable financial contributions therefor. 8. In no event may the Group or any individual city embark on legal action in the name of the Group or take any action purportedly representing the interests of the Group or contractually binding the Group without the approval of all member cities duly obtained in accordance with this Agreement and applicable law or ordinance. Notwithstanding this, the City of Port Townsend is authorized to take reasonable administrative actions consistent with its duties as Lead Agency and inherent in previously authorized activities. In the event any member of the Group takes any action in violation of this paragraph, causing liability for the Group or any member thereof, said party shall indemnify and hold harmless the Group and any member thereof from all claims and damages resulting from this action. This paragraph shall survive the termination of this Agreement. 9. The term of this Agreement shall be two years from the date last signed below, unless earlier terminated by agreement of the member cities or withdrawal of all cities from the Group. This Agreement may be extended for such additional periods as agreed to from time to time. 10. This Agreement will be executed by duly authorized representatives of each party signing individual facsimiles hereof and returning same to the Lead Agency. When all four member cities have executed this Agreement, it shall go into effect. ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 2 DATE: DATE: CITY OF OLYMPIA CITY OF BREMERTON DATE: DATE: CITY OF BAINBRIDGE ISLAND CITY OF PORT TOWNSEND ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 3 DATE: DATE: CITY OF OLYMPIA CITY OF BREMERTON DATE: DATE: 1 CITY OF BAINBRIDGE ISLAND CITY OF PORT TOWNSEND ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 3 EXHIBIT A Initial Scope of Work 1. Deregulation At the direction of the Group, monitor proposed legislation and competitive trends in the electric utility industry and report them to the Group as events occur or appear imminent. Work with the members of the Group to represent their interests with respect to the state legislature and state and Federal agencies (including the Bonneville Power Administration and the WUTC). 2. Legal issues related to electric power franchise Review legal issues related to electric power franchise agreements, including the full .range of issues and requirements which can be addressed in franchise agreements. Respond to arguments raised by PSE concerning the legal limitations of franchise agreements. As directed by the Franchise Negotiation Group, research the possible. legal impediments to pursuing alternate electric service providers, including but not limited to stranded cost issues, condemnation of facilities, and debt financing for newly created public utilities. Legal issues shall first be screened by a Legal Committee composed of the Port Townsend City Attorney, the Bremerton City Attorney, and the Olympia City Attorney. The Legal Committee shall review potential legal issues and determine whether the Committee will itself provide legal advice to the Franchise Negotiation Group. The Committee shall determine the outside attomey(s) for referral of legal issues. Any outside legal counsel shall provide advice to the Legal Committee as its client, on a confidential basis. The Legal Committee shall specifically describe and confine all issues referred to outside legal counsel, and shall establish a maximum budget for each referral to outside legal counsel. The Committee shall keep the Franchise Negotiation Group advised regarding the issues referred to outside legal counsel, and shall report the project-specific outside legal counsel budget to the Group. 3. Street light systems Assist members of the Group in evaluating options related to street light systems and, if appropriate, negotiating advantageous clauses in their electric power franchises. Consider options such as approaching the WUTC with proposals for new or revised PSE rate schedules. 4. Aggregation potential Discuss and analyze the potential for savings due to municipal aggregation in a, competitive environment should deregulation occur. Identify legal, technical, and economic impediments to pursuing this option. Monitor power market trends and ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 4 their likely impact on possible savings due to aggregation. Assist the Group with a proposal to the WUTC for a pilot project on municipal aggregation. 5. Vegetation removal At the direction of the Grou®. assist members with insertinn q nIar,.qp- in tFtim-ir alartrir power franchises relating to tree trimming/removal and other vegetation issues. This clause should address coordination with the local municipality. 6. Franchise issues: what to include or what not to include At the direction of the Group, review other possible clauses that members of the Group may wish to include in their electric power franchises such as: • Conformance to a future master.right-of-way agreement • Free uses" of utility poles for municipal purposes • Sharing of records, data, and information including a cooperatively determined asset sale price (if appropriate) Most favored nation clause, if appropriate • Reimbursement for negotiation expenses ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 5 EXHIBIT B Proposed Initial Project Budget Total Budget $20,000 City of Bremerton $5,000 City of Bainbridge Island $5,000 City of Port Townsend $5,000 City of Olympia $5,000 ELECTRIC FRANCHISE NEGOTIATION GROUP INTERLOCAL AGREEMENT Page 6