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HomeMy WebLinkAbout5.375 Original Contract 5.875 CONSULTING SERVICES AGREEMENT EES CONSULTING, INC. Billing Address 570 Kirkland Way, SUite 200, Kirkland, Washington 98033 (425) 889-2700 Work Order 1100-18670 This Consulting Services Agreement (herein Agreement) IS made between EES Consulting, Inc , (hereinafter "EES CONSULTING") and City of Port Angeles, POBox 1150, Port Angeles, WA 98362 (hereinafter "CLIENT") I. SCOPE, COMPENSATION AND QUALITY OF CONSULTING SERVICES EES CONSULTING Will provide the services and be compensated for these services as described In Exhibit A, attached hereto EES CONSULTING shall render ItS services In a=rdance with generally accepted professional practices EES CONSULTING shall, to the best of Its knowledge and belief, comply with applicable laws, ordinances, codes, rules, regulations, permits and other published reqUirements In effect on the date thiS Agreement IS signed II. TERMS & CONDITIONS OF CONSULTING SERVICES AGREEMENT Timing of Work EES CONSULTING shall commence work on or about January 1, 2003 2 Relationship of Parties, No Thlrd.Party Beneficiaries EES CONSULTING IS an Independent contractor under thiS Agreement ThiS Agreement gives no nghts or benefits to anyone not named as a party to this Agreement, and there are no third party beneficlanes to thiS Agreement 3 Insurance a Insurance of EES CONSULTING EES CONSULTING will maintain throughout the performance of thiS Agreement the follOWing types and amounts of Insurance Worker's Compensallon and Employer's Liability Insurance as required by applicable state or federal law Comprehensive Vehicle Liability Insurance covering personal injury and property damage claims arising from the use of motor vehicles with combined single limits of $1 ,000,000 ill Commercial General Liability Insurance covering claims for personal InJury and property damage with combined Single limits of $1 ,000,000 IV ProfeSSional Liability (Errors and Omissions, on a claims-made baSIS) Insurance with limits of $1 ,000,000 b Interpretation Notwithstanding any other provlslon(s) In thiS Agreement, nothing shall be construed or enforced so as to vOid, negate or adversely affect any otherwise applicable Insurance held by any party to thiS Agreement 4 Mutuallndemnification EES CONSULTING agrees to indemnify and hold harmless CLIENT and ItS employees from and against any and all loss, cost, damage, or expense of any kind and nature (including, without limitation, court costs, expenses, and reasonable attomeys' fees) anslng out of Injury to persons or damage to property (Including, without Iimltallon, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees, and representatives) In any manner caused by the negligent acts or omissions of EES CONSULTING In the performance of Its work pursuant to or In connection With thiS Agreement to the extent of EES CONSULTING's proportionate negligence, If any CLIENT agrees to indemnify and hold harmless EES CONSULTING and ItS employees from and against any and all loss, cost, damage, or expense of any kind and nature (Including Without limitation, court costs, expenses and reasonable attomeys' fees) anslng out of injury to person(s) or damage to property (Including, Without limitation, property of CLIENT, EES CONSULTING, and their respecllve employees, agents, licensees and representallves) In any manner caused by the negligent acts or omiSSions of CLIENT or other(s) With whom CLIENT contracts ("CLIENT's agents") to perform work pursuant to or In connection With thiS Agreement, to the extent of CLIENT's or CLIENT's agents proportionate negligence, If any 5 Resolution of Disputes, Attorneys' Fees The law of the State of Washington shall govern the Interpretation of and the resolution of disputes under thiS Agreement If any claim, at law or otherwise, IS made by either party to thiS Agreement, the prevailing party shall be enlltled to Its costs and reasonable attorneys' fees 6 Termination of Agreement Either EES CONSULTING or CLIENT may terminate thiS Agreement upon thirty (30) days wntten notice to the other sent to the addresses listed herein In the event CLIENT terminates thiS agreement, CLIENT speCifically agrees to pay EES CONSULTING for all services rendered through the termination date EES CONSULTING, INC CITY OF PORT ANGELES By ~fl.. TItle ~,'(''1 tnA-,.,J/t4Ge Date J A,.::> 10 l ZOo.3 .- By Gary Saleba TItle PreSident Date November 11, 2002 5.&75 04fj CONSULTING SERVICES AGREEMENT EES CONSULTING, INC. Billing Address 570 Kirkland Way, SUite 200, Kirkland, Washington 98033 (425) 889-2700 This Consulling Services Agreement (herein Agreement) is made between EES Consulling, Inc , (hereinafter "EES CONSULTING") and the City of Port Angeles, POBox 1150, Port Angeles, WA 98362, Attn Mr Scott Mclain (hereinafter "CLIENT') I. SCOPE, COMPENSATION AND QUALITY OF CONSULTING SERVICES EES CONSULTING Will provide the serviceS and be compensated for these services as descnbed In Exhibit A, attached hereto EES CONSULTING shall render Its services In accordance With generally accepted profeSSional practices EES CONSULTING shall, to the best of Its knowledge and belief, comply With applicable laws, ordinances, codes, rules, regulations, permIts and other published requirements In effect on the date thiS Agreement IS signed II. TERMS & CONDITIONS OF CONSULTING SERVICES AGREEMENT Timing of Work EES CONSULTING shall commence work on or about January 1, 2004 2 Relationship of Parties, No Third-Party Beneficiaries EES CONSULTING is an independent contractor under thiS Agreement This Agreement gives no nghts or benefits to anyone not named as a party to thiS Agreement, and there are no third party benefiClanes to thiS Agreement 3 Insurance a Insurance of EES CONSULTING EES CONSULTING Will maintain throughout the performance of thiS Agreement the follOWing types and amounts of Insurance Worker's Compensalion and Employer's Liability Insurance as reqUIred by applicable state or federal law ComprehenSive Vehicle Liability Insurance covenng personal Injury and property damage claims an sing from the use of motor vehicles With combined Single limits of $1,000,000 III CommerCial General Liability Insurance covenng claims for personal injury and property damage With combined Single limits of $1,000,000 iv ProfeSSional Liability (Errors and OmiSSions, on a claims-made baSIS) Insurance With limits of $1,000,000 b Interpretation Notwithstanding any other provlslon(s) In thiS Agreement, nothing shall be construed or enforced so as to VOId, negate or adversely affect any otherwise applicable Insurance held by any party to thiS Agreement 4 Mutuallndemnificatlon EES CONSULTING agrees to Indemnify and hold harmless CLIENT and Its employees from and against any and all loss, cost, damage, or expense of any kind and nature (Including, Without limitation, court costs, expenses, and reasonable attomeys' fees) anslng out of Injury to persons or damage to property (Including, Without Iimltalion, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees, and representatives) In any manner caused by the negligent acts or omiSSions of EES CONSULTING In the performance of Its work pursuant to or In conneclion With thiS Agreement to the extent of EES CONSULTING's proportionate negligence, If any CLIENT agrees to Indemnify and hold harmless EES CONSULTING and Its employees from and against any and all loss, cost, damage, or expense of any kind and nature (including Without Iimltalion, court costs, expenses and reasonable attomeys' fees) anslng out of Injury to person(s) or damage to property (Including, WithOUt limitation, property of CLIENT, EES CONSULTING, and their respeclive employees, agents, licensees and representalives) In any manner caused by the negligent acts or omiSSions of CLIENT or other(s) With whom CLIENT contracts ("CLIENT's agents") to perform work pursuant to or In conneclion With thiS Agreement, to the extent of CLIENT's or CLIENT's agents proportionate negligence, If any 5 Resolution of Disputes, Attorneys' Fees The law of the State of Washington shall govem the Interpretation of and the resolution of disputes under thiS Agreement If any claim, at law or otherwise, IS made by either party to thiS Agreement, the prevailing party shall be enlitled to Its costs and reasonable attomeys' fees 6 Termination of Agreement Either EES CONSULTING or CLIENT may terminate thiS Agreement upon thirty (30) days wntten notice to the other sent to the addresses listed herein In the event CLIENT terminates thiS agreement, CLIENT SpeCIfically agrees to pay EES CONSULTING for all services rendered through the termination date EES CONSULTING, INC CITY OF PORT ANGELES /l A BY~~ , Title "7)'fUrc-rvlL ~;;?tA) t.. '- '-1h'(t(CI 'l-V.,..., c..., n&r./ I'l-- ;i/e> 3 Date By Gary Sa leba Title PreSident Date October 29,2003 Exhibit A Western Public Agencies Group 2004 Scope of Services and Budget The Western Public Agencies Group (WP AG) comprises 20 publicly owned utilities in the state of Washington: Benton REA, Clallam County P.U.D. No.1, Clark Public Utilities, the City of Ellensburg, Kittitas County P.U.D. No.1, Lewis County P.U.D. No.1, Mason County P.U.D. No.1, Mason County P.U.D. No.3, Pacific County P.U.D. No.2, Peninsula Light Company, the City of Port Angeles, Snohomish County P.U.D. No.1, and members of the Pierce County Cooperative Power Association, which includes Alder Mutual Light Company, the Town of Eatonville, Elmhurst Mutual Power and Light Company, Lakeview Light and Power Company, the City of Milton, Ohop Mutual Light Company, Parkland Light and Water Company, and the Town ofSteilacoom. Together the WP AG member utilities serve more than one million customers and purchase more than 12 billion kilowatt-hours from the Bonneville Power Administration ("Bonneville") each year. WP AG member utilities also own or receive output from more than 500 megawatts of non- Bonneville generation and purchase more than 400 megawatts of power from sources other than Bonneville. WP AG members are winter-peaking utilities with lower annual load factors. WPAG members' similar characteristics have caused them to join together to represent their interests before Bonneville, and in other forums in the Pacific Northwest and the United States since 1980. WPAG has intervened as a group in every major Bonneville rate proceeding since enactment of the Pacific Northwest Electric Power Planning and Conservation Act of 1980. WP AG's interests have also been represented in Congress, before the Northwest Power Planning Council, and in other regional forums. The scope of services presented here includes areas that various other organizations, of which WP AG members might also be members, cannot advocate for WP AG members due to conflicts of interest within those organizations. WP AG thus fills a need that is unmet by membership in the Public Power Council, the Northwest Public Power Association, the Pacific Northwest Utilities Conference Committee and other similar groups. 2-1 Exhibit A Scope of Services The 2004 scope of services for WP AG is proposed as follows: . General WP AG Activities and Meetings During 2004, EES Consulting and MMPS&M will monitor and comment on regional and federal activities of general interest to include BP A-related legislation, progress regional transmission and wholesale market design issues, and any other new topic of mutual interest and relevance. Monthly meetings will be held to briefWP AG members on these activities. . BP A Power Business Line Rates BPA continues to have periodic adjustments of the Load-Based, Financial-Based and Safety- Net CRACs which will be followed closely. In the event that there is a Settlement, monitoring the implementation of the Settlement elements will be necessary. . BP A Financial Review BP A will be facing continuing challenges regarding their financial condition and need to raise rates. There will be a continuing need to pressure BP A in all arenas to cut costs as an alternative to raising rates. To this end, BP A is expected to continue conducting periodic "spending reviews," which we will monitor on behalf of WP AG. . RTO West With recent possible stalling of FERC's standard market design (SMD) proposal, and subsequent variants, the RTO West is expected to become a greater focus. A significant aspect of the activities taking place in 2004 will include further development of alternatives to the Phase II filing, the cataloguing of transmission contract rights and the inclusion of transmission facilities in the R TO West system. Both of these issues could have significant implications for members ofWPAG. We will actively participate in these efforts on behalf ofWPAG. . Standard Market Design/Wholesale Market Platform Although losing support from the current Presidential Administration, FERC continues to advocate to Congress the need for new regulations that will change market design in the region and across the nation. Future variations of these proposed regulatory schemes could have significant implications on the region, BP A and the future of power supply to WP AG utilities. EES Consulting and MMPS&M will monitor these activities, and intervene where appropriate, on behalf of WPAG's specific interests. 2-2 Exhibit A . Energy Policy Act of 200312004 With renewed interest in energy issues resulting from the "Blackout of 2003," there appears a greater possibility of the passage of the most significant energy legislation since the Energy Policy Act of 1992. These new laws could have significant implications on the region, BP A and the future of power supply to WP AG utilities. EES Consulting and MMPS&M will monitor these activities and report on developments of special interest to WP AG utilities. . Regional Benefits/BP A Future Role Settlement discussions regarding the allocation of BP A's resources are likely culminate this year, ifnot sooner, and may result in new power sales contracts being negotiated in late 2004. Having principal negotiators involved in this process, continued WP AG participation will be important to ensure a successful conclusion to these efforts. There is a strong likelihood that there will be an effort to institute tiered rates as part of the 2006 rate proceeding, with the preparatory work being done in the next two years. This will be a major money issue for all WP AG utilities. . Olympia Legislative Session The 2004 legislative session is not expected to deal with WP AG-related activities in any major fashion such as industry restructuring or deregulation, but may touch on other utility issues such as taxation, financial/rate information sharing, telecommunication issues, etc. EES Consulting and MMPS&M will monitor these activities on behalf of WPAG's specific interests. . Litigation Although this appears less likely, there is still the possibility that a challenge to the Subscription ROD may commence if the above noted Settlement does not come to fruition. If pursued, additional funding above and beyond this proposed budget may be needed. Budget The budget for the scope of services described above is calculated at the following billing rates for EES Consulting and MMPS&M: EES Consulting President................................................. ....... .......................... $130 per hour Vice PresidentlManaging Director............................................ 120 per hour Project Manager ........................................................................110 per hour Analyst or Engineer................................................................... 100 per hour ClericaL............................................................................... 60 - 80 per hour 2-3 " ~ Exhibit A MMPS&M Principal.................................................................................. $135 per hour Associate ................................................................................... 110 per hour These billing rates will remain in effect through December 31, 2004. On the basis of the above billing rates, the 2004 labor budgets ofEES Consulting and MMPS&M combined are estimated to be $200,000. This labor budget will be split equally between EES Consulting and MMPS&M. In addition to labor costs, out-of-pocket expenses will be billed to WP AG members at their cost to EES Consulting and MMPS&M. It is estimated that $30,000 in total out-of-pocket expenses will be incurred for all work elements in total. Out-of-pocket costs will be billed by whichever organization actually incurs the expense. The total estimated WP AG budget for 2004 is estimated at $230,000. As always, the allocation of the budget among WP AG members is open to negotiation by the participants. We have attached an inter-utility allocation predicated on the most recent available utility data, assuming a 15 percent maximum allocation to anyone utility. After a final count of WP AG participants, a final budget by utility will be prepared. An example of the budget's allocation is attached at the end of this narrative. Project Staffing The staffing for this project will be similar to that for past WP AG activities. Gary Saleba and Terry Mundorf will be the principal representatives for EES Consulting and MMPS&M, respectively. Additional MMPS&M and EES Consulting staffwill assist as needed. 2-4 .. Western Public Agencies Group Proposed Budget for 2004 Scope of Services EES Consulting and Marsh Mundorf Pratt & Sullivan Source: 2002-2003 Northwest Electric Utility Directory (NWPPA) ! '. October 29, 2003 Total Budget Labor Expenses Total $ $ $ 200,000 30,000 230,000 Average of Customers, Energy Sales and Investment Customers Energy Sales Investment With 15% Budget Allocation Without Cap Cap with Cap percent of percent of percent of percent of percent of number total kilowatt-hours total dollars total total total dollars Individual Utilities Benton Electnc REA 13,142 2.1% 450,736,546 3.7% $ 65,752,765 2.4% 2.7% 6.3% $ 14,483 Clallam County PUD 26,505 4.1% 560,108,566 4.6% $ 64,442,121 2.3% 3.7% 8.4% $ 19,348 Clark Public Ublbes 163,204 25.5% 4,029,287 0.0% $ 622,000,000 22.6% 16.0% 15.0% $ 34,500 City of Ellensburg 7,900 1.2% 174,520,000 1.4% $ 17,354,895 0.6% 1.1% 2.5% $ 5,713 Kittitas County PUD 2,863 0.4% 56,480,000 0.5% $ 11,527,647 0.4% 0.4% 1.0% $ 2,407 Lewis County PUD No. 1 27,629 4.3% 752,123,825 6.2% $ 111,871,710 4.1% 4.9% 11.2% $ 25,875 Mason County PUD No.1 4,679 0.7% 59,201,555 0.5% $ 13,909,077 05% 0.6% 1.4% $ 3,121 Mason County PUD NO.3 28,678 4.5% 588,118,045 4.9% $ 119,601,279 4.3% 4.6% 10.7% $ 24,719 Pacific County PUD No.2 15,965 25% 272,725,362 2.3% $ 38,063,367 1.4% 2.0% 4.7% $ 10,782 Peninsula Light Company 27,426 4.3% 489,217,983 4.0% $ 56,965,000 2.1% 3.5% 7.9% $ 18,105 City of Port Angeles 9,865 1.5% 616,313,601 5.1% $ 23,000,000 0.8% 2.5% 5.3% $ 12,244 Snohomish County PUD NO.1 276,500 43.1% 7,250,728,000 59.9% $ 1,559,678,000 56.6% 53.2% 15.0% $ 34,500 Pierce County Cooperative Power Association Alder Mutual Light Company 261 0.0% 3,130,123 0.0% $ 304,166 0.0% 0.0% 0.1% $ 134 Town of Eatonville 1,076 0.2% 23,412,000 0.2% $ 1,150,000 0.0% 0.1% 0.3% $ 676 Elmhurst Mutual Power and Light Company 12,761 2.0% 248,318,181 2.1% $ 13,237,595 0.5% 1.5% 3.3% $ 7,617 Lakeview Light and Power Company 8,911 1.4% 279,369,138 2.3% $ 9,727,671 0.4% 1.4% 2.9% $ 6,689 City of Milton 3,163 0.5% 51,314,000 0.4% $ 2,378,975 0.1% 0.3% 0.7% $ 1,687 Ohop Mutual Light Company 3,702 0.6% 66,636,755 0.6% $ 9,659,139 0.4% 0.5% 1.1% $ 2,610 Parkland Light and Water Company 4,030 0.6% 111,264,000 0.9% $ 12,000,000 0.4% 0.7% 1.5% $ 3,447 Town of Steilacoom 2,728 0.4% 37,205,823 0.3% $ 1,785,000 0.1% 0.3% 0.6% $ 1,345 Subtotal Pierce County Cooperative Power Association 36,632 5.7% 820,650,020 6.8% $ 50,242,546 1.8% 4.8% 10.5% $ 24,204 Total 640,988 100.0% 12,094,952,790 100.0% $ 2,754,408,407 100.0% 100.0% 100.0% $ 230,000 Note: Allocation percentages assume full participation by all member utilities.