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HomeMy WebLinkAboutMinutes 03/20/1980 349 CITY COUNCIL MEETING Port Angeles, Washington March 20, 19BO . I CALL' TO: ORDER I The special meeting was called to order by Mayor Haguewood at 7:00 P.M. The purpose of this meeting is to discuss negotiations with representa- tives from the Northern Tier Pipeline Company. II ROLL CALL Members Present, Mayor Haguewood, Councilmen Boardman, Buck, Duncan, Hordyk, Polhamus, Quast. Members Absent, None. staff Present: Manager Flodstrom, Attorney Miller, Deputy Clerk Caso. D. Frizzell, P. Carr, M. Cleland. Northern Tier, B. Sage, G. Smith, G. Smedes, K. Berryman. Public Present: A. Rud, R. Gesellchen, B. Corcoran, S. Anderson, E. Sofie, I. Cooter, J. Sobieck, D. Rudolph, W. Roden, R. Cockrill, H. Berglund, J. Creighton, B. Downen, R. Tharaldsen, F. Booren, L. Ross, B. Matte, S. Rudolph, D. Bettger, L. Torres. III - IV Suspended. V LEGISLATION 1. NORTHERN TIER NEGOTIATIONS; GUIDELINES & PROCEDURES I Mayor Haguewood called the meeting to order and, in his opening comments, welcomed the Northern Tier Negotiating committee to this meeting. Issue position papers were then exchanged and Manager Flodstrom read an opening statement concerning negotiation activities. Mr. Bill Sage, Chairman of Northern Tier's Negotiating Committee, then presented his opening comments and read each item under Northern Tier's Issue No.1 (Negotiation Guide- lines and Procedures). These items were compared with the City's items under Issue No.1, with the following final conclusions: GUIDELINES I. Negotiations will be directed toward identifying project impacts, and miti- gating them once identified, and not toward amending existing policy positions. 2. Each party to these discussions must commit to good faith negotiating and a timely resolution of discussion items. 3. Both sides agree not to make statements to the press regarding the content or progress of negotiations except in the presence of the other party during pUblic meetings or through joint press contacts. 4. Both sides will exercise discretion during public meetings in characterizing actions or statements of the other side in ways which could do damage to the goodwill necessary for successful negotiations. I 5. Each party will appear in a negotiating or discussion session fully prepared to discuss all items on the agreed upon agenda. 6. Each party will come into a meeting with sufficient authority to formally commit to settlement or agreement on a particular impact or its mitigation, at least to the extent of the final position paper of each party. Chairman of the negotiation committee will have the authority necessary to commit to settlement of an issue beyond the scope of the party's final position paper, into the range of difference between the position papers of the two parties. For Northern Tier, this authority is vested in Bill Sage, the Chairman of the Northern Tier Negotiating Committee or his written designee; for the City, a quorum of the Council shall be present. 350CITY COUNCIL MEETING March 20, 1980 V LEGISLATION Guidelines, Cont. # 7. No agreement shall be considered complete and binding until a formal written agreement has been prepared and signed by both parties. For those items agreed to in negotiating sessions, the formal agreement shall be prepared and signed expeditiously. All written agreements approved by both parties shall be jointly submitted to EFSEC and other permitting agencies. Both parties agree not to further contest the subjects covered by an agreement, I except as further stated in the agreement itself. ~ 8. Any offer for settlement beyond the scope of the final position paper must be specifically identified as such in the discussion session. Discussions or conversations, not so specifically identified, shall not constitute offers and shall not be binding. 9. It is agreed between the parties that the City does not hereby waive any of its previously adopted policies or positions on this project; including, but not limited to, the policy of enforceability and applicability of its land use plan and zoning ordinance to the Northern Tier project, and any position adopted by the City in the proceedings before EFSEC concerning the Northern Tier Pipeline Company application, Application No. 76-2. Each party expressly reserves the right to modify, through necessary and legal procedures, any pOlicy position in order to resolve issues in a mutually beneficial manner. 10. In those cases where EFSEC or other permitting agencies do not establish con- ditions or establish conditions which are less restrictive than those estab- lished by agreement in those negotiations, the conditions of these agreements shall prevail. However, both parties recognize that when EFSEC or federal conditions conflict with or exceed the conditions contained in these agree- ments, EFSEC or federal permits will prevail. PROCEDURES I. All meetings between the City Council and Northern Tier shall be open to the public with appropriate public notice. I 2. Public input shall not be allowed at any negotiating session. The City Council may allow public input regarding a negotiating session at a later meeting of the City Council. 3. Meetings between the City and Northern Tier shall be at mutually agreed upon times and places. 4. Topics for the next negotiating session will be established at each nego- tiating session, as the first item on the agenda, with each party establish- ing one half of the topics for the next negotiating session. " 5. Agenda and time schedules for each negotiating session will be established by mutual agreement between the City Manager (David rlodstrom) and the Chair~ man of Northern Tier's Negotiating Issues Team (Gary Smith) prior to the negotiating session. Topics for the next negotiating session will be placed upon the agenda in one of two categories: (1) Items for preliminary statement of position or continuing discussion; (2) Items that appear ready for final negotiation, and for which final position papers will be prepared. I Final position papers for items placed on the agenda as ready for final negotiation will be exchanged at the beginning of consideration of that issue during the negotiating session. 6. Either party may caucus at any time, at its sole discretion. 7. All documents constituting formal offers for settlement shall be labeled "Final position Paper," and documents not labeled in this manner shall be for discussion purposes only. CITY COUNCIL MEETING March 20, 1980 351 V LEGISLATION Procedures, Cont. 8. There shall be no particular order of speaking required; although a pre- liminary statement of initial position by each party may be useful. 9. Each party may designate "principal spokesmen." I 10. Principal spokesmen may yield to any employee or officer of the party. 11. The "meeting format" attached to these procedures as Exhibit "A" and incorporated by this reference, is hereby adopted as a general format for the meetings. 2. ISSUE NO 2: RECOVERY OF COSTS The next subject to be discussed at this negotiation session was recovery of indirect and out-of-pocket costs incurred in the review of the Northern Tier Pipeline proposal. Prior to any discussion on this issue, Attorney Miller stated that no other issues' will' be discussed uiltil"Issue No. 2 was resolved; if Item No. 2 is not resolved at this meeting, it will be the first item on the agenda at the next negotiation session. Northern Tier concurred. I Manager Flodstrom then briefly summarized the important points in the City's position on Issue No.2. Expenses covering pre-certification costs to date were outlined as follows: (A) City staff Expenses - $66,338; (B) Cash Con- tributions to Task Force - $13,567; (Cl Fees for Legal Counsel - $57,407; and (D) Miscellaneous Expense - $3,790. The City has no immediate possi- bility of recovering any of this investment and believes that the only acceptable measure for amelioration is direct reimbursement of costs by the Northern Tier Corporation, and payment of all future local government expenses, properly documented. Northern Tier's position on Issue No.2 was then outlined by Bill Sage as follows: "It is the policy of the Northern Tier Pipeline Company to not provide financial assistance to entities which actively oppose the company's proposal." However, Mr. Sage did indicate that Northern Tier will consider payment of those costs related to analysis of the project, both past and future. Northern Tier will need, however, further delineation on how those costs ($l41,l02) were expended. Manager Flodstrom, Attorney Miller and Mr. Sage discussed both party's position on this issue at length. No decisions were made. However, the City did state that they felt the costs incurred were reasonable, explain- able and appropriate, and offered Northern Tier the opportunity to determine what they need for purposes of investigation of those costs; the City will provide that information to Northern Tier, if they respond in a reasonable time period, and will be ready to discuss this matter again on a staff level on or before March 25th, if possible. Northern Tier concurred with the City's offer, and the discussion on this issue was concluded for the interim. VI ADJOURNMENT The meeting adjourned at 9:45 P.M. I ~@,~ city Clerk ,~J:~jy~~