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Home My WebLink About5.375C Original ContractEES Consulting, Inc. December 18, 2000 Mr Dan Sharpe Alder Mutual Light Company Post Office Box 841 Elbe, WA 98330 Mr. Charles Dawsey Benton Rural Electnc Association Post Office Box 1150 Prosser, WA 99350 Mr Tom Richardson City of Cheney 112 Anderson Road Cheney, WA 99004 -1870 Mr Mike Mclnnes Clallam County P U D Post Office Box 1117 Port Angeles, WA 98362 Mr Wayne Nelson Clark Public Utilities Post Office Box 8900 Vancouver, WA 98668 Mr Russ Blount Town of Eatonville Post Office Box 309 Eatonville, WA 98328 Mr Bob Titus City of Ellensburg 420 North Pearl Street Ellensburg, WA 98926 Dear Ladies and Gentlemen: Very truly yours, Gary S. Sa President Post Office Box 52810 Bellevue, Washington 98015 -2810 Telephone 425 452 -9200 Mr Dennis Wilson Elmhurst Mutual Power Light 120 South 132nd Street Tacoma, WA 98444 Mr Rick Lovely Grays Harbor P U D Post Office Box 480 Aberdeen, WA 98520 Mr George Harmon Kittitas County PUD 1400 East Vantage Highway Ellensburg, WA 98926 Mr Donald Geiselman Mr Robin Rego Lakeview Light Power Co Post Office Box 98979 Tacoma, WA 98498 Mr Dave Muller Lewis County P U D Post Office Box 330 Chehalis, WA 98532 Mr Dick Wilson Mason County P U D No 1 North 21971 Highway 101 Shelton, WA 98584 Facsimile 425 452 9299 Mr Ed Blakemore Mason County P U D No 3 Post Office Box 2148 Shelton, WA 98584 Mr John Williams City of Milton 1000 Laurel Street Milton, WA 98354 Ms Isabella Deditch Ohop Mutual Light Co 34014 Mountain Highway E Eatonville, WA 98328 Mr Doug Miller Pacific County P U D Post Office Box 472 Raymond, WA 98577 Mr James Shemll Parkland Light Water Co Post Office Box 44426 Tacoma, WA 98444 Mr. Robert E Orton Peninsula Light Company Post Office Box 78 Gig Harbor, WA 98335 SUBJECT: Proposed WPAG Scope of Services and Contracts for 2001 Attached please find consulting and legal contracts for the 2001 scope Western Public Agencies Group (WPAG). If these contracts are accepta return one copy for our files Thank you again for allowing EES Consulting and Marsh Mundorf Pratt you for another year. Please feel free to call Terry or me if you have any 12011 Bel -Red Road, Suite 200 Bellevue, Washington 98005-2471 A registered professional engineering corporation with offices in the Seattle, Spokane, Portland, Vancouver, Chicago and southern California metropolitan areas and an affiliate office in Calgary Mr Paul Elias Snohomish County P U D Post Office Box 1107 Everett, WA 98206 Mr Dave Gebert Town of Steilacoom 1030 Roe Street Steilacoom, WA 98388 Mr. Scott McLain City of Port Angeles P O Box 1150 Port Angeles, WA 98362 of services for the ble, please sign and Sullivan to serve questions. Western Public Agencies Group 2001 Scope of Services and Budget EXHIBIT A The Western Public Agencies Group (WPAG) comprises 22 publicly owned utilities in the state of Washington: Benton REA, Clallam County P.U.D. No. 1, Clark Public Utilities, the City of Cheney, the City of Ellensburg, Grays Harbor County P.U.D. No. 1, 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, 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, Peninsula Light Company and the Town of Steilacoom. Together the WPAG member utilities serve more than one million customers and purchase more than 12 billion kilowatt-hours from the Bonneville Power Administration (`Bonneville each year. WPAG 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. WPAG 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. WPAG'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 WPAG members might also be members, cannot advocate for WPAG members due to conflicts of interest within those organizations. WPAG 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. Scope of Services The 2001 scope of services for WPAG is proposed as follows: Reopened Rate Case General WPAG Activities and Meetings RTO Northwest Chapter DSI Survivability Regional Benefits F "'xs 4 EXHIBIT A BPA has reopened the rate case and is proposing a 20% increase to ratio. In addition, it is proposing many changes detrimental to our interests, including a four month CRAC collection period, unfiltered ability to increase rates without review, and exempting others (IOUs, DSIs) from certain increases. Vigorous participation is warranted. During 2000, EES Consulting and MMP &S will monitor and comment on regional and federal activities of general interest to include BPA related legislation, ISO/RTO progress, Regionalization of BPA, and any other new topic of mutual interest and relevance. Monthly meetings will be held to brief WPAG members on these activities. Stage 2 of the RTO filing will take place in the December -May time period. This will include agreement drafting, lobbying, FERC comments and possible litigation. This is the process that decides who will benefit from the regional transmission system. While the tie in the Senate makes major policy initiatives less likely, it appears likely that there will be a push on electric issues that may include Northwest and BPA issues. Lobbying and legislative drafting may be necessary if this takes off. BPA is considering additional subsidies to keep the DSIs in operation. Strenuous efforts should be made to reclaim this power for service to public loads. There is likely to be another push to reallocate the federal power among the IOU, public power and DSI interests. WPAG participation will be important to presenting a strong public power position. A -2 Olympia Legislative Session Litigation Public Agency Exchange Buyout EXHIBIT A The 2001 legislative session is not expected to deal with WPAG- related activities in any major fashion such as industry restructuring or deregulation, but will undoubtedly touch on other utility issues such as taxation, financial /rate information sharing, telecommunication issues, etc. EES Consulting and MMP &S will monitor these activities on behalf of WPAG's specific interests. This monitoring will be greatly assisted by Mason County PUD #3's on- site support. A challenge to the Subscription ROD is pending, and additional challenges to BPA rate and subscription decisions may be initiated. These decisions and budget amounts will be made on a case by case basis. About one -half of the WPAG utilities participated in the Exchange. BPA must offer Exchange contracts, which may present a buyout opportunity, and would include analysis, negotiation and contract drafting. A budget for this activity will be offered on a utility specific basis. As has been the case in past years, individual WPAG member utilities may choose not to participate in one or more elements of the above scope of services. The budget provided below, and the allocation that is attached, assumes that all member utilities will participate in all elements of the scope of services. It should be noted that the BPA Slice Product technical and legal work product will be administered via a utility specific agreement and outside of this WPAG contract. Budget The budget for the scope of services described above is calculated at the following billing rates for EES Consulting and MMP &S: EES Consulting President $120 per hour Vice President 110 per hour Project Manager 100 per hour Analyst or Engineer 80 95 per hour Clerical 40 60 per hour MMP&S Principal $135 per hour Associate 110 per hour These billing rates will remain in effect through December 31, 2001. EXHIBIT A On the basis of the above billing rates, the labor budgets of EES Consulting and MMP &S are estimated separately as follows: In addition to labor costs, out -of- pocket expenses will be billed to WPAG members at their cost to EES Consulting and MMP &S. At 15 percent of labor costs, it is estimated that $29,000 in total out -of- pocket expenses will be incurred for all work elements as a whole. Out -of- pocket costs will be billed by whichever organization actually incurs the expense. As always, the allocation of the budget among WPAG 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 any one utility. This allocation assumes that all current WPAG member utilities will participate in all of the 2001 activities. After a final count of WPAG 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 WPAG activities. Gary Saleba and Terry Mundorf will be the principal representatives for EES Consulting and MMP &S, respectively. Additionally, an ad hoc work group of technical representatives from each utility may be used to address specific needs. Labor Budget Only Task EES Consulting MMP &S Other Total Reopened Rate Case $50,000 $30,000 $80,000 General 20,000 30,000 50,000 RTO 5,000 10,000 15,000 NW Chapter 5,000 5,000 10,000 Regional Benefits 10,000 10,000 20,000 Litigation Olympia 5,000 5,000 5,000 15,000 TOTAL LABOR $95,000 $90,000 $5,000 $190,000 MMP&S Principal $135 per hour Associate 110 per hour These billing rates will remain in effect through December 31, 2001. EXHIBIT A On the basis of the above billing rates, the labor budgets of EES Consulting and MMP &S are estimated separately as follows: In addition to labor costs, out -of- pocket expenses will be billed to WPAG members at their cost to EES Consulting and MMP &S. At 15 percent of labor costs, it is estimated that $29,000 in total out -of- pocket expenses will be incurred for all work elements as a whole. Out -of- pocket costs will be billed by whichever organization actually incurs the expense. As always, the allocation of the budget among WPAG 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 any one utility. This allocation assumes that all current WPAG member utilities will participate in all of the 2001 activities. After a final count of WPAG 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 WPAG activities. Gary Saleba and Terry Mundorf will be the principal representatives for EES Consulting and MMP &S, respectively. Additionally, an ad hoc work group of technical representatives from each utility may be used to address specific needs. Billing Address PO. Box 52810, Bellevue, Washington 98015 -2810 (425) 452 -9200 This Consulting Services Agreement (herein Agreement) is made between EES Consulting, Inc (hereinafter "EES CONSULTING and the City of Port Angeles, PO Box 1150, Port Angeles, Washington 98362 (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. I1. TERMS CONDITIONS OF CONSULTING SERVICES AGREEMENT 1. Timing of Work. EES CONSULTING shall commence work on or about January 1, 2001. 2. Relationship of Parties, No Third -Party Beneficiaries EES CONSULTING is an independent contractor under this AgreemenL This Agreement gives no rights or benefits to anyone not named as a party to this Agreement, and there are no third party beneficiaries 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: I. Worker's Compensation and Employer's Liability Insurance as required by applicable state or federal law 11 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. in 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 51,000,000 b Interpretation. Notwithstanding any other provision(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. Mutual Indemnification 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 attorneys' fees) arising out of injury to persons or damage to property (including, without limitation, 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 attorneys' fees) ansing out of injury to person(s) or damage to property (including, without limitation, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees and representatives) 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 entitled to its costs and reasonable attorneys' fees. 6 Termination of Agreement. Either EES CONSULTING or CLIENT may terminate this Agreement upon thirty (30) days written 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. By. Gary Saleba c... Title: President Date. December 18, 2000 CONSULTING SERVICES AGREEMENT EES CONSULTING, INC. Work Order #16130 CITY OF PORT ANGELES By C C A C Lit.& Title. 1 t rt•ct -C'bA. b. TK -..'r' ,tp Date Fe0 74e4 -4 A4„ -1 t 4 1 1 o a 1