Resolution No. 01-16 CITY OF TIGARD,OREGON
RESOLUTION NO.01-J U
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT TO CONDUCT A
JOINT REVIEW OF PGE FRANCHISE FEES PAID AND TO COLLECT BASE DATA NECESSARY
TO A DETERMINATION OF THE FUTURE BASIS OF CALCULATION OF PGE FRANCHISE
FEES.
WHEREAS,the City of Tigard has granted a franchise to Portland General Electric Corporation kTGE)for
use of the public rights-of-way,and
WHEREAS, under the terms of the franchise,PGE is required to pay the City an annual fee equal to 3.5%
of its gross revenues generated within the City of Tigard,and
'WHEREAS, PGE's payment under this franchise agreement totaled over$930,000 in FY 2000-01,and
WHEREAS, the City has never checked PGE's records to make sure that it is properly accounting for and
reporting gross revenues generated within the City of Tigard,and
WHEREAS, it is appropriate to periodically check the calculations leading to this source of revenue,and
WHEREAS, the 1999 Oregon Legislature passed SB 1149 to deregulate the electrical industry effective
October 1,2001,and
WHEREAS, under SB 1149 cities will have to determine whether to remain with the current basis of
charging franchise fees to electrical utilities or to change to a volumetric approach,and
WHEREAS, The City of Tigard needs to gather base data about franchise fees paid and classes of
customers within the City of Tigard prior to making the SB 1149 determination,and
WHEREAS, several other cities within PGE's service area also wish to review franchise fees paid and to
collect base data prior to making an SB 1149 determination,and
WHEREAS, it is cost effective for several cities to conduct a joint review of PGE' franchise fees paid.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
1
SECTION 1: The City of Tigard shall enter into an intergovernmental agreement with other cities in
2 the PGE service area to conduct a joint review of PGE gross revenue calculations and
customer lists and to gather base data necessary to the determination of which basis the
City wishes to use for calculation of franchise fees in the future.
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RESOLUTION NO.01-lin
Page 1
SECTION 2: The Mayor is authorized to sign an intergovernmental agreement on behalf of the City
of Tigard in substantially the form included with this resolution as Attachment A.
PASSED: ThisX/ day Z2001.
tY r
Ci f Tigard
-
Council President
ATTEST:
C�'fhexu-rlo 1j ')w
City Recorder-City of Tigard
i:kiWMde\ewlutdot
RESOLUTION NO.OI J Lp
Page 2
INTERGOVERNMENTAL AGREEMENT
This Intergovernmental Agreement("Agreement")is entered into on
2001 ("Effective Date") between all of the municipalities listed in
Exhibit A. Each of the municipalities listed in Exhibit A may be referred to
individually herein as a "Party"and collectively as the"Parties".
Recitals
A. The Parties desire to hire one or more consultants ("Consultant") to review
and analyze revenues received from PGE for the rights and privileges to
operate in the public right-of-way.
B. There are savings available to the Parties by aggregating the review and
analysis, retaining a Consultant to assist them in such review and jointly
provide funds to pay such Consultant.
C. This Agreement is made under the provisions of Oregon Revised Statutes
(ORS) 190.003 to 190.030. ORS 190.010 authorizes municipalities to enter
into intergovernmental agreements for the performance of any or all
functions and activities that a Party to this agreement has the authority to
perform.
Agreement
The Parties agree to the following:
1. The Parties desire to retain a Consultant to work with the Parties in reviewing
and analyzing franchise fees paid by Portland General Electric("PGE")to the
Parties, including but not limited to an evaluation of gross revenue
calculations, and developing procedures to be used by member Parties in
comparing customer database lists received from PGE with internal
databases ("Consultant Services"). In performing the services, the
Consultant shall analyze franchise fees paid to the Parties by PGE, pursuant
to the Parties' respective electricity franchises or licenses, for calendar year
1999. In addition, the Consultant shall obtain PGE's customer lists for
calendar year 2000 to assist the Parties in the database comparison portion
of the Consultant Services.
i
2. The Consultant shall be retained through a formal Request for Proposal
("RFP") process. The Parties hereby delegate authority to the City of
Hillsboro to prepare the RFP, make an award and enter into a personal
a services contract with the Consultant on behalf of all of the Parties. The
Parties acknowledge and agree that the City of Hillsboro's standard personal
services contract, attached hereto as Exhibit D, may be used for the
procurement of the Consultant Services.
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3. Each Party shall share in the cost of paying the Consultant to perform the
work as outlined in the RFP.
4. The amount in Exhibit B labeled Estimated Budget for the Consultant
Services may only be modified through separate written agreement signed by
all Parties to this Agreement.
5. The percentage in Exhibit B labeled as Percentage of Contract Considered
as Fixed may only be modified through separate written agreement signed by
all Parties to this Agreement.
6. Each Party shall be responsible for paying an equal share of the Fixed Costs
relating to the Consultant Services, as shown in Exhibit B. The Fixed Cost
allocation is non-refundable in the event a Party should withdraw from this
Agreement.
7. The Variable Costs, as shown in Exhibit C and defined as the Total Cost of
the Consultant Services less the Fixed Costs, shall be apportioned on a pro-
rate basis to each Party to this Agreement. The pro-rata basis shall be
determined by comparing the gross PGE franchise or license revenues for
each Party to the total gross PGE franchise or license revenues received by
all Parties to this Agreement. Gross revenues shall be the 1999 gross
revenues as defined by PGE in the letter accompanying the 1999 franchise
fees received by each Party in calendar year 1999.
8. Each Party shall remit its share of the Fixed Cost within thirty (30) days after
executing this Agreement. Upon finalization of the budget for the Consultant
Services,each Party shall remit any remaining unpaid share of the total Fixed
Cost estimate. The City of Hillsboro shall prepare and submit invoices to
each Party immediately after the Agreement is executed and the budget
estimate is finalized.
9. The City of Hillsboro shall prepare and submit Variable Cost invoices to each
Party as soon as reasonably possible. The City of Hillsboro will include with
each invoice all back-up information reasonably related to the invoice. Each
Party shall pay its pro-rata share of the Variable Costs within thirty (30)days
of the date of the invoice.
10.The Parties acknowledge and agree that in the event a Party withdraws from
this Agreement,Exhibit C—Allocation of Variable Cost shall automatically be
updated and revised to reapportion. the Variable Cost among the remaining
Parties.
11.The Parties further delegate to the City of Tigard ("Lead Agency") and the
City of Hillsboro ("Managing Agency") the authority to make administrative
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decisions on behalf of the Parties. The Lead Agency and the Managing
Agency shall make reasonable efforts to keep the Parties informed of any
decisions made on behalf of the Parties.
12.Any Party may terminate their participation in this Agreement so long as the
terminating Party meet all of the following requirements (a) the terminating
Party must provide seven (7)days prior written notice to both the Managing
Agency and the Lead Agency; (b)such notice must be received by both the
Managing Agency and the Lead Agency prior to the inception of any Variable
Costs; and (c) the terminating Party must submit full payment to the
Managing Agency of any Fixed Costs owed to date by the terminating Party.
13.This Agreement shall terminate upon the earlier of full payment by all of the
Parties of all sums due under this Agreement, or two (2) years from the
Effective Date. This Agreement may be terminated earlier upon mutual
consent of the majority of the Parties.
15.The parties shall comply with all applicable laws and regulations regarding
the handling and expenditure of public funds. This Agreement shall be
construed and enforced in accordance with the laws of the State of Oregon.
16.Time is of the essence in the performance of this Agreement.
17.This Agreement is for the benefit of the Parties only. Each Party agrees to
indemnify and hold harmless each other Party and its officers, officials,
employees,agents and volunteers,from and against all claims, demands and
causes of actions and suits of any kind or nature for personal injury, death or
damage to property on account of or rising out of services performed, the
omission of services or in any way resulting from the negligent or wrongful
acts or omissions of the indemnifying Party and its officers, officials,
employees, agents and volunteers. In addition, each Party shall be solely
responsible for any contract claims, delay damages or similar items arising
from or caused by the action or inaction of that Party under this Agreement.
18.No waiver, consent, modification or change of terms of this Agreement shall
be binding unless in writing and signed by all Parties.
19.Any Party may institute legal action to enforce any covenant or agreement
herein, or to enjoin any threatened or attempted violation of this Agreement.
All legal actions shall be initiated in Washington County Circuit Court. The
Parties,by signature below of their authorized representatives, consent to the
in personam jurisdiction of that court.
20.Performance by any Party shall not be in default where delays or default is
due to war, insurrection, strikes,walkouts, riots,floods,drought,earthquakes,
fires, casualties,acts of God,governmental restrictions imposed or mandated
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by governmental entities other than the Parties, enactment of conflicting state
or federal laws or regulations, new or supplementary environmental
regulation, litigation or similar bases for excused performance that are not
within the reasonable control of the Party to be excused.
21.If any one or more of the provisions contained in this Agreement is invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions of this Agreement will not be affected or impaired
in any way.
22.This Agreement is the entire agreement of the Parties on its subject and
supersedes any prior discussions or agreements regarding the same subject.
23.This Agreement may be executed in any number of counterparts by any one
or more of the Parties hereto, and all of these counterparts will be one
Agreement. To facilitate execution of this Agreement, the Parties may
execute by facsimile transmission the counterparts of the signature pages.
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Signature Page for Intergovernmental Agreement for Consultant Services:
Review and Analysis of Portland General Electric Franchise and License Fees
Name: Brian Moore, Tigard Council Name
President
By: By:
Date: April 24, 2001 Date:
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
' Name: Name
By. By
Date: Date:
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Signature Page for Intergovernmental Agreement for Consultant Services:
Review and Analysis of Portland General Electric Franchise and License Fees
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
Name: Name
By: By:
Date: Date:
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