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Home My WebLink About5.755 Original Contract . I 5.'755 r:/Lf.D FOR R'-C '~'" T - Jy eF ~4_C/:f-""'" IECOROi:.O ", -" -;-::"i.._..--i---~. -. "'-\.'~, l~J., tL^t~~"I,H r:c+ ", 2005 DEe -9 Pj~i 3: 08 Filed at the Request of: 0) City of Port Angeles City Clerk's Office P. O. Box 1150 Port Angeles, W A 98362 \1I\~~\1I1~\1\~\1I~~11 2005 1171034 County Interlocal Agreement City Clerk File No.: --------------------------- Agreement between the City of Port Angeles and Public Utility District No. 1 of Clallam County Purpose: Letter Agreement - 2005 Western UGA Annexation Electric Facilities Transfer Dated: November 21. 2005 . . , LETTER AGREEMENT 2005 WESTERN UGA ANNEXATION ELECTRIC FACILITIES TRANSFER This agreement is made and entered into this ~ day of November, 2005, by and between the City of Port Angeles, Washington, hereinafter referred to as the "City", and the Public Utility District No.1 ofClallam County, Washington, hereinafter referred to as the "District". For and in consideration of the benefits derived by this agreement and in settlement and satisfaction of their legal rights and obligations, the parties recite, and agree as follows: 1. (a) The parties entered into an "Electric Service Area Agreement" on the 30th day of December, 1992. That "Electric Service Area Agreement" is incorporated herein by this reference and may hereafter be referred to as the "Service Agreement". (b) Effective on June 30, 2005, the City annexed a portion of its western urban growth area. The area annexed is depicted on the map which is marked Exhibit A, attached hereto, and incorporated herein by this reference. The area depicted may hereafter be referred to as the "Annexed Area". (c) The parties acknowledge and agree that the Annexed Area is subject to the terms and provisions of the Service Agreement. 2. as follows: To satisfy their rights and obligations under the Service Agreement, the parties agree a. The City shall pay to the PUD a single lump-sum payment of$370,344.42. b. Severance costs, as defined in the Electric Service Area Agreement, Exhibit "B", shall be paid based upon actual costs, and will be billed to the City upon completion of each phase of the transfer of facilities. c. The City will provide electric service to all parts ofthe Annexed Area east of Eclipse Drive and within Eclipse Drive (designated service area 1 on Exhibit A) not later than December 31,2005. d. The City will provide electric service to all parts of the Annexed Area west of Eclipse Drive (designated service area 2 on Exhibit A) not later than March 31, 2006. -1- --: ~ e. The PUD will provide electric service to customers in the Annexed Area east of Eclipse Drive and within Eclipse Drive (service area 1) until the physical transfer of facilities has occurred, but not later than December 31, 2005 and the PUD shall continue to provide electric service to facilities along Highway 101 and west of Eclipse Drive (service area 2) until the physical transfer of facilities has occurred, but not later than March 31, 2006. 3. The monetary consideration to be paid by the City to the PUD will be paid within sixty (60) days of the date this agreement is signed and executed fully by both parties. 4. This agreement shall be effective only after it is signed and fully executed by both parties and approved by the governing board of each party. 5. The parties acknowledge and agree that performance ofthe terms and conditions of this agreement will constitute full compliance and satisfaction of their rights and obligations. CITY OF PORT ANGELES CLALLAM COUNTY PUBLIC UTILITY DISTRICT NO. 1 BY:~~ Shelley Burge'!t, Interim General Manager By: /1IJ~4C. ~'h ~ ~E. Madsen, Ci Manager Approved as to form: .V;~ ]; a . Williams E. Bloor, City Attorney Attest: Adtl~ J.)U-01l. Becky J. Upt , Ci Clerk 7 C \Documents and Settmgslsmclam\Local Settmgs\Temp\PUD- WestemUGAI 0- I 8-05 wpd November 10, 2005 \'.f.,~'~t"" ~'" _"., (\ ~ r.!) ,T' / Ilf.~ . '\OJ.. .. . . ~ .. " ........ l"'\' J-"P ; II" J"1 #'~ \.to , I' " ",f ," ~ .. ".".. ~ p" 1;s;:~ ~~ 'CY 1~:' '\ :: '..1.." :'(:' !,ill;:-_ 1 I :: ,'.,. f\ ' If'" '; 6'." -; : ttJ ~ !, - 1;' ~ r~' ..:; :: X: ;,} .L.1 ...J; [;'. ~ ~ v.." '-,. ... ",~~ -;.t : G) ': ~, C) 0" ~,'. t}" }r~ ~c- (i ,: ..~ ......~ f" ~f",1f-<tI~O"\_," .,:-'" "~~,_ J"'~:~1' CeO(,}GQQ ~\J'~~ ,............ "; IS /1.1' >.1 r; \ .~.... . "1>. I I" ~ '''' - "IJlt~~"I.",.';\'j'" ~i/1 , "....'r.........;.!~t~~";...... t l)~ , ?" ,> -2- ""'S"'1S IVlmkttdttJ '" brt IdU/w u kgul"s':"plHM~ 1JrISIIIlfHhNr/fOKlSprrdKftJlrytlwO/)'o{PurlAlrgrltsj",u _"II.~QlId~&- AI... uthtnw ofdns I/ICtp drutamg shull,1VI brt IJIIt re<ptHlSlblllllluftlw (IN ~~ "'- -==>r ~- ~ N Feel Exhibit A Western UGA Annexed Area ~, 3D~ I ), "Exhibit B" . 'i, ELECTRICAL SERVICE AREA AGREEMENT This AGREEMENT is made and entered into this 3 Oth day of December, 1992, by and between the city of Port Angeles, Washington, hereinafter called the "city," and the Public utility District No. 1 of Clallam County, Washington, hereinafter called the "District." WITNESSETH that: WHEREAS, the City and the District concur that the elimination and avoidance of duplicate electrical plant would be in the best interests of their rate-paying customers; and WHEREAS, the city and the District require definitive service areas in order that they may properly plan for growth within their respective systems; and WHEREAS, the laws of the State of Washington, specifically Chapter 54.48 RCW and RCW 35A.14.900, contain language governing agreements between utilities regarding service territories and acquisition of facilities; and WHEREAS, City and District representatives have met and reached an agreement on electrical service areas; NOW, THEREFORE, IT IS AGREED between the parties hereto as follows: 1. Service Area Boundarv: 1.1 The electrical service area boundary between the City and the District shall be the city Limits as shown on Exhibit "A" attached hereto and made a part of this Agreement. All the territory within the described boundary shall be the City Service Area. All the territory without the described boundary shall be the District Service Area. Each utility shall have the exclusive right to provide electrical service 'to facilities lying within their respective service territories except as provided for in section 7 of this Agreement. 1.2 All areas that are annexed into the City during the term of this Agreement shall automatically adjust the Service Area Boundary so that it falls within the city's Service Area, provided -1- , I( \1 . that upon any such annexation Exhibit "A" shall be revised accordingly. 2. Term of Agreement: This Agreement shall be effective from midnight December 31, 1992, until midnight December 31, 2017. 3. Termination of Agreement: After the tenth year of this Agreement and at five-year intervals thereafter, either party to this Agreement may terminate the Agreement by giving the other party written notice at least ninety (90) days before the end of the tenth year or the end of any five-year period thereafter. 4. Changes to the Aqreement: Changes in the terms and conditions of this Agreement may be made at any time upon the mutual written consent of both parties, provided, however, that revisions to Exhibit "A" as necessitated by annexations have already been agreed upon herein. Either party desiring a change shall give the other party ninety (90) days written notice. The notice shall contain the desired changes and a full explanation of the reasons for the changes. If, at the end of the ninety-day period, the parties hereto cannot mutually agree to the proposed changes, the Agreement shall remain unchanged. 5. Immediate Sale of Certain Facilities: Within one hundred twenty (120) days after the effective date of this Agreement, the District will sell and convey to the City and the City shall purchase certain electric system facilities existing within the City's Service Area, as shown on Exhibit "A" as "Immediate Sale Facilities," which Exhibit is attached hereto and made a part of this Agreement. The purchase price will be in accordance with Section 10 of this Agreement. On the effective date of such sale or conveyance, the District's customers in these areas will be transferred to the City, and the District will have no further service obligation to such customers. 6. Delaved Sale of Certain Facilities: 6.1 The District shall sell and convey and the City shall purchase certain facilities of the District that lie within the -2- -, City's Service Area as shown on Exhibit "A" as "Delayed Sale Facilities," which Exhibit is attached hereto and made a part of this Agreement. The city shall have up to three (3) years to purchase Delayed Sale Facilities or up to eighteen (18) months after written notice that the District will be unable to continue service to those customers without substantial system capital cost as determined by the District. The City shall notify the District, within sixty (60) days of the effective date of this Agreement, the date(s) the City proposes to purchase the Delayed Sale Facilities. The purchase price will be in accordance with Section 10 of this Agreement. 6.2 As areas are annexed into the City, the City will have twenty four (24) months in which to provide service to customers in the annexed area by constructing facilities or purchasing District facilities. within sixty (60) days of the effective date of annexation, the City will advise the District how the city intends to provide service to the customers in the annexed area (by constructing facilities, purchasing facilities, or both), and the date(s) the City proposes to purchase any District facilities in the annexed area. The purchase price will be in accordance with section 10 of this Agreement. 7. Retention of certain Facilities: Both the City and the District shall have the right to construct, maintain, and otherwise operate those facilities required to provide electrical service to properties owned and operated by them regardless of whose Service Area the property lies within. Such facilities will be identified on Exhibit "A." However, this does not preclude either party from providing service 'to the other party upon .cequest. 8. New Developments in citv Service Area: For the period of time that the District maintains existing distribution lines in the City's Service Area in order to continue electric service to existing customers in the area, the city may, at its option, request the District to serve a new customer or group of new customers until such time as the City purchases that -3- ,. portion of the District's distribution line used to provide service to the new customer or installs its own facilities in the area. The District may choose not to provide service to new customers if the provision of such service would require substantial system capital cost as determined by the District. The City and the District will meet to determine the preferred manner to construct facilities to provide service to the new customer (s). The District will only install service lines and transformers; all other facilities must be installed by the City and will remain City property. Connection of City facilities to District facilities will be done by the District at City expense. Maintenance responsibility will be established for each situation. The City may choose to use the wheeling provisions of Section 11 of this Agreement in order to provide City service at City rates. For proposed new developments located on sites on which a District electric line exists and the City has determined that the City will serve the new customer(s) or the development, the following shall apply: 8.1 The City shall purchase that portion of the District line located in the development, or if the District line extends through a proposed development and City acquisition of that portion of the District line located within the proposed development renders the remaining portion of the electric line unserviceable as determined by the District, then: g. If the entire remaining portion of the electric line is located within the City's Service Area, the City, at its option, shall either pay the District to relocate the line, either underground or overhead, to eliminate any conflicts with the proposed development, or purchase the entire portion of the line extending to, through, and beyond the proposed development; or ~. If the remaining portion of the electric line extends beyond the City's Service Area and the District determines that the facility is necessary to maintain service to customers situated outside the City service Area, the City shall pay the District the -4- ,. , _ ~~1'- _,', ~~~::,!' " 'f:\.~., . - -. ..' cost of the relocation work necessary to eliminate any conflicts between the electric line and the proposed development. ~ The city Light Director shall make the determination as to whether or not a District line is in conflict with proposed developments. The determination shall be made at the time the developments are being considered by the city. 9. Exclusion: All existing and future District transmission lines, major distribution feeder lines, and substations as described and shown on Exhibit "A" attached hereto, and as further amended, and made a part of this Agreement, are excluded from the terms and conditions of this Agreement. These lines may be repaired, replaced, expanded, and up-graded to a higher voltage at any future date without regard to this Agreement. 10. Purchase Formulas: The purchase price for transfers from the District to the city shall be established pursuant to Sections 10.1 and 10.2 of this Agreement. The meaning of the terms used in sections 10.1 and 10.2 is set forth on Exhibit "B," attached hereto and made a part of this Agreement. 10.1 P9rchase Price for Transfer of Facilities with customers: The purchase price shall be the lesser of: a) the cost for the City to serve plus severance costs, or b) compensation based on five (5) years of net revenue plus plant value plus severance costs. 10.2 Purchase Price for Transfer of Customers Onl V: In situations where transfer of customers occurs with no transfer of facilities, the purchase price shall be the lesser of: a) the cost for the City to serve plus severance costs, or b) compensation based on five (5) years of net revenue plus severance costs. 11. Wheeling Agreements: The city and the District acknowledge that there may be certain groups of their customers located where extension of their lines would be uneconomic and duplicative of the other party's facilities. -5- .~ t- r- . '. . Recognizing potential benefits to rate-paying customers, the District and City hereby agree to consider wheeling power over their facilities for the other party upon request and subject to an appropriate wheeling agreement(s). Each wheeling agreement will specify the conditions and charges for this service utilizing the Wheeling Principles set forth in Exhibit "C." The parties will strive for a simple formula for wheeling charges that recognizes cost factors and utility standards. Either party may deny a request for wheeling services. 12. Hold Harmless: The city agrees, upon completion of the transfer of service area and electrical facilities in accordance with this Agreement, to indemnify, defend, and hold harmless the District and its off icials, employees, and agents, from and against any and all claims for damages or any other relief due to property damage, personal injury, or any other form of loss arising from accidents or injuries occurring after the date of the transfer. The City agrees to accept facilities as is with no warranty as to condition or suitability for use by the city except as otherwise provided in this Section. The District agrees, upon completion of the transfer of service area and electrical facilities referenced above, to indemnify, defend, and hold harmless the City, its officials, employees, and agents, from and against any and all claims for damages or any other relief due to property damage, personal injury, or any other form of loss arising from accidents or injuries occurring prior to the date of the transfer or occurring as a result of defects. 13. Authoritv: Each party warrants that the undersigned representative has full and complete legal authority to sign for it and to commit it to the performance of the agreements set forth herein. -6- .1' . 6 ~, . II . "'J.. k ... '. ' IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly signed and executed in two counterparts as of the day and year first above written. /l4rr.! ~ ti~~thbn(~ M1 ael M Innes, Manager PUBLIC UTILITY DISTRICT NO. 1 OF CLALLAM COUNTY ATTEST: ATTEST: ~ R bert J. 1tus, D1rector PORT ANGELES CITY LIGHT J3o~((,,~, ),fgO^ Becky Jl- Up' n, C y Clerk "j',~I' '~ t.,.,~lt\tIUJ,., -\~'II'''' \\\\ I": '~., 'Ii.', 'rt., ...,,\ ~ \' I I,; ,fi'/<'''f<~''~' ;, ,.....~ ,e.<t" '(lO;>G ~f: ......,,~ -" "oJ tic.. ,... ~'. .",:' . ~''''''fJQ''' ~I\ l :;~l,., (~: '-:;-:, , \,:' ~, .:J '~ "'" 'i.; ~. '" : I ," ~ \.. .... W . ,~\- .- , . J cr.: )', 1\" .... .~ ~' :::.~' f\~ l; ~. ~ I"". ; ,.'"" I.J .1,"! ,'J. Vi' . _ v - ~\. ... ~ l . ~. \".. ',' ;r~~ f', .:- ~.... l:t: ~ '''' '):':~Q v: ..... ,;;'I'JI~ ~ .. t,~ \,~o~.:.... ~ tfi . " ~t)o ''''1 ..:..' :II!, .~ P l' ~ " "III' ,,,,'; ". ,.it ..... ,.~ .. r: i', ",.. ... ('\ ,'" 'I ,\ I, '\!' \ \.J \' lli, >' i ;, j" \) \\\' ""It';.il"\'\\.~' ~." -7- 5.755 . "~ ILl!iJ 2431 East Highway 101 Post Office Box 1090 Port Angeles, WA 98362 (360) 452-9771 FAX 452-9338 www clallampud net Dennis W Bickford, PE , General Manager Commissioners Will Purser, Dlstnct No 1 Hugh Haffner, District No 2 Ted Simpson, District No 3 November 23, 2005 Mr. Scott McLain Deputy Director for Power Systems City of Port Angeles P.O. Box 1150 Port Angeles, W A 98362 RE: LETTER AGREEMENT 2005 WESTERN UGA ANNEXATION ELECTRIC FACILITIES TRANSFER Dear Mr. McLain: A fully executed copy of the Letter Agreement, 2005 Western UGA Annexation, Electric Facilities Transfer is enclosed. The District's Commissioners approved this agreement at their meeting on November 21,2005. Sincerely, ~~ Carol Biss Executive Assistant to Shelley Burgett , Enclosure