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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
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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.