HomeMy WebLinkAbout5.439 Original Contract
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Filed at the Request of:
2005 SEP -9 Al1 9: 27
City of Port Angeles
City Clerk's Office
P. O. Box 1150
Port Angeles, W A 98362
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2005 1164627
Clallam
County
Interloca1 Agreement
City Clerk File No.:
5451'
Agreement between the City of Port Angeles and ~t. 1\Ja, ~ ~G.w\.
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INTERGOVERNMENTAL
MEMORANDUM OF UNDERSTANDING
WHEREAS the City of Port Angeles (hereinafter "the City") and PUD No.1 ofClallam
County (hereinafter "the PUD") have a mutual interest in providing utility services in a cost-
effective and efficient manner; and
WHEREAS current and future changes in the utility industry will offer new opportunities
for cooperation between the City, PUD, and other third parties; and
WHEREAS enhanced cooperation and support for shared utility system planning,
construction, and operation will optimize the resources of each organization, thereby benefiting
area residents and businesses;
NOW, THEREFORE, THE CITY AND PUD HERETO AGREE to pursue opportunities
for cooperative and shared and coordinated local area utility planning and operations and to
develop strategic alliances that place service to PUD customers and City of Port Angeles citizens
as the primary objective. The local area utility concept includes, but is not limited to, the
following:
Planning - Explore the feasibility and desirability of one utility infrastructure planning for
interconnected utility systems to serve the customers. This may result in more efficient
system design and economic savings to the customer. The City anticipates using
information from the City's Annexation Strategy Study in this approach.
Operating - The entity that operates the system most effectively may be different from the
entity that owns the system. Operation of an integrated system by a single entity could
lead to cost savings through standardization of equipment and design, buying power,
inventory reduction, and more efficient crew utilization.
Financing - Capital needs for an integrated system are recovered from those benefiting
from improved level of service but regional needs may be distributed over a broader base
of customers thereby reducing rate impacts.
Billing - Integrated billing and payment for utility services may result in savings and
improved customer convenience.
Service Area - Service areas could be specifically defined where necessary and used in the
planning process. The City's current approach is to not provide service outside the city
limits but could consider providing service inside the UGA.
The parties agree that a working group shall be made up of one council member, one
commissioner and appropriate staff as needed. The working group will coordinate this effort.
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The parties further agree to extend the Wholesale Water Contract through August 1998, in order
to allow thorough discussion of the possibilities for strategic alliances and incorporate mutually
agreeable aspects in a longer range water supply contract. The PUD and the City will proceed
with development of a Low Zone intertie and address transfer of certain related facilities and
customers from the PUD to the City.
PUBLIC UTILITY DISTRICT NO. 1
OF CLALLAM COUNTY
BY~~
Micha I McInnes, General Manager
Dated: JtAfJe 10, 1'J97
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