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Resolution No. 14-39r CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 14-3`J A RESOLUTION OF THE TIGARD CITY COUNCIL APPROVING AN AGREEMENT FOR ALTERNATE SERVICE BETWEEN PORTLAND GENERAL ELECTRIC COMPANY,THE CITY OF LAKE OSWEGO AND THE CITY OF TIGARD RELATING TO CONSTRUCTION OF THE NEW RIVER INTAKE PUMP STATION, AND AUTHORIZING THE CITY MANAGER TO SIGN THE AGREEMENT WHEREAS, on August 6, 2008, the cities of Lake Oswego and Tigard (the "cities') executed an Intergovernmental Agreement Regarding Water Supply Facilities,Design,Construction,and Operation;and WHEREAS, the cities have determined that that it is in the best interests of both that the design and constnuction of certain water supply facilities include a back-up source of electrical power for planned and emergency interruptions of the primary electrical power over the operating life of such facilities;and WHEREAS,through analysis of alternatives for providing a back-up source of electrical power, the cities have determined that entering into an agreement for alternate power service (Agreement) with Portland General Electric (PGE) best meets the cities' objective of providing an reliable supply of water to their citizens for public health,fire suppression,sanitation and economic development;and WHEREAS, the Agreement with PGE is providing the cities on-demand access to a second power source of electrical power from its supply system in perpetuity, in exchange for a one-time lump sum payment of $273,168. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The city manager is authorized to sign the Agreement substantially in the form attached hereto as Attachment 1. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of t 2014. U& Mayor(pry of Tigard ATTEST: —6: � ieA Loki ta& . City Recorder-City of Tigard RESOLUTION NO. 14- Page 1 CITY OF LAKE OSWEGO; CITY OF TIGARD AND PORTLAND GENERAL ELECTRIC COMPANY AGREEMENT FOR ALTERNATE SERVICE (River Intake Pump Station in Gladstone) 2014 This Agreement for Alternate Electric Service ("Agreement") is between the City of Lake Oswego, an Oregon municipal corporation;the City of Tigard, an Oregon municipal corporation; both hereinafter referred to as "Customer" and PORTLAND GENERAL ELECTRIC("PGE"), an Oregon corporation, hereinafter the "Parties". The parties agree as follows: 1. Term of Agreement This Agreement shall commence on the date of execution and remain in effect for as long as the Customer requires alternate electric service at the location described below or until Customer provides written notice to PGE in accordance with paragraph 10a) herein, whichever is earlier. 2. Conditions of Service PGE reserves the right to test, operate, and maintain the PGE equipment involved.The Customer will be notified in writing or by using another mutually agreeable method of communications in advance,to the extent practicable, if the alternate service will be unavailable for more than 24 hours. This Agreement does not provide for increases in PGE's alternate service capacity and may therefore be interrupted if actual kVA demand by the Customer on the alternate service facilities exceeds the contracted maximum kVA demand. 3. Location to be Served and Point of Delivery a) No later than five business days after receipt of payment from Customer pursuant to section 4(a)of this Agreement, PGE shall install and maintain for the Customer's emergency use, sufficient alternate electric service capacity as contracted by the Customer at Customer's premises located at: 105 E. Clackamas Blvd, Gladstone, Oregon 97027 b) The point of delivery of alternate electric service is specifically described as: Termination lugs for#2 AL XLP cable contained within the EUSERC-compliant (section 400 of the 2012 Electric Utility Service Equipment Requirements Committee standards manual) 15 kV- rated revenue metering cabinet and located at Lake Oswego/Tigard Water Partnership River Intake Pump Station (105 E. Clackamas Blvd., Gladstone, OR 97027). See Exhibit 1. 21 River Intake Pumping Station — Alt Svc Agreement 4. Payment a. Contracted Demand: Customer agrees to pay PGE a one-time lump-sum payment of two-hundred-seventy-three- thousand one hundred sixty-eight dollars, ($273,168) no later than September 30, 2014. Subject to receipt of the one-time lump-sum payment, PGE will provide 1,000 kVA of alternate service capacity under this Agreement. b. Demand in Excess of Contracted Amount: When the alternate service is utilized,the Customer's monthly billing will consist of the standard kW and WAR demand charges on either the preferred or alternate service, whichever is the greater;the sum total kWh charge for both services and, in the event that the Customer imposes a kVA demand on the alternate service facilities in excess of the above-listed,the Customer will pay PGE an additional monthly amount for that month and the succeeding 11 months. This amount will be determined by multiplying the excess kVA demand by the current tariff sum of transmission and distribution demand charges and the applicable facilities capacity charges. Currently the sum of these monthly charges is$4.92 per kVA for a Schedule 85 secondary voltage customer at 1,000WA. Should a condition of kVA demand which exceeds the maximum kVA contracted for under this Agreement occur, the Customer shall either modify operation to prevent excess kVA demand or execute a supplemental Agreement with PGE for the additional amount of alternate service required. It is understood and agreed that the cost of additional alternate service will be based on the costs of PGE in effect at that time.The Customer will be billed actual cost of any damage to PGE's alternate facilities caused by the Customer's alternate service demand in excess of the contracted amount. 5. Advanced Notice for Using Alternate Facilities Either PGE or the Customer may arrange for service to be provided through the alternate facilities. The Customer must gain prior approval for non-emergency usage by providing written notice to PGE five (5) days in advance of the desired switch. Notice to PGE shall be provided to Tiffany Delgado, Key Customer Manager (503-464-8635). 6. Indemnification Customer shall,to the fullest extent permitted by law, protect,defend, indemnify and hold harmless, PGE and its affiliates and their respective employees, directors, and agents 31 River Intake Pumping Station — Alt Svc Agreement ("Indemnitees")from and against any losses,costs, claims, penalties,fines, liens,demands, liabilities,legal actions,judgments, and expenses of every kind (including,without limitation, reasonable attorney fees, including at trial and on appeal) asserted or imposed against any Indemnitees by any third party(including, without limitation, employees of Customer or PGE) and arising out of the negligent or wrongful ads or omissions of Customer or any subcontractor of or consultant to Customer or any of their respective employees, directors or agents arising out of or in any way related to the performance or nonperformance of this Agreement ("Indemnified Losses"), except to the extent such Indemnified Losses are caused by the sole negligence or willful misconduct of the Indemnitees. Customer warrants to PGE that its indemnity obligation will be supported by liability insurance to be furnished by it, or self-insurance approved by PGE for these purposes; provided that recovery under or in respect of this indemnity shall not be limited to the proceeds of any insurance. 7. Disclaimer of Consequential Damages EXCEPT TO THE EXTENT REQUIRED BY LAW, PGE SHALL NOT BE LIABLE TO CUSTOMER FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER SPECIAL, PUNITIVE, EXEMPLARY,CONSEQUENTIAL, INCIDENTAL OR INDIRECT LOSSES OR DAMAGES (IN TORT,CONTRACT OR OTHERWISE) UNDER OR IN RESPECT OF THIS AGREEMENT. 8. Successors and Assigns The Customer may assign this Agreement to a third party or a successor in interest as long as a) in PGE's reasonable judgment such third party's or successor's creditworthiness and ability to perform Customers obligations under this Agreement are at least as good as that of Customer; and b) the assignee or successor agrees to be bound by all the terms and conditions of this Agreement. 9. Cancellation of Previous Agreements Any and all former agreements between the Customer and PGE for alternate electric service covered by this Agreement are hereby canceled and terminated. 10. Termination of This Agreement a) This Agreement maybe terminated by the Customer upon 30 days'written notice to PGE.The availability of alternate electric service is subject to all changes in applicable tariffs, including Utility Rules and Regulations and all lawful order of the Public Utility Commission of Oregon. 41River Intake Pumping Station — Alt Svc Agreement b) Should the payment for alternate service be on a monthly basis, upon termination Customer will pay to PGE the amount that PGE's depreciated investment in such alternate service facilities exceeds the current value of the facilities to PGE. c) If the Customer has made a lump-sum prepayment to PGE for the alternate service facilities, upon termination PGE will pay to the Customer an amount equal to the current value to PGE for said facilities. This amount will not exceed the initial investment in said facilities minus depreciation accrued at the time of such termination. d) In the event that the Customer fails to prevent excess kVA demand and refuses to execute a supplemental agreement with PGE for the additional amount of alternate service required, upon written notice to Customer, PGE may terminate this Agreement, and Customer shall be responsible for all outstanding amounts owed to PGE including the applicable payment under section 10b). IN WITNESS WHEREOF,the undersigned parties have executed this Agreement this day of . 2014. CUSTOMER: CITY OF LAKE OSWEGO CUSTOMER: CITY OF TIGARD c��4mft CIrY M9NR440z' (Signature,Title) (Signature,Title) 64�_lt (Date) (Date) COMPANY: PORTLAND GENERAL ELECTRIC COMPANY dr#v*"4si f/&L- C•�y +E ` e-" Os w+ra, aw.� -Y*(q (Signature, Title) (Date) PGE-Rates and Regulatory Affairs PGE—Legal Review (Signature, Title) (Initials, Date) (Date) 51 River Intake Pumping Station — Alt Svc Agreement E 3-#2 AL XLP in 4"PVC Conduit. Alternate Service �--- (Abernathy •S Clackamas Helghts) NOTE 8— r- ' - PGE Metering Cabinet. ' EUSERC 401 Compliant 7 , UTILITY i 1AETERING Rf0U7RED #1>rtKlNp ENCLOSURES SPACE BOUNDARY--rr--' , 7 E5 c5 -- 15kY PAD-AVATED P , SWI TCNGEM E6 ; E6 RAW-03-SWC-001 ' JEMtINOS LOOSE � 'E UTILITY SEAVICE POLE DROP—, r 1500116MYA E ' TRANSFOAUER RAWo3•xFN•001 E Ef +EB � E5 ti E5 150011880&VA TRANSFOPMR RAW-03-01f-002— Partial Site Plan — No Scale 3/za/la North 13 kV PGE Service to Lake Oswego/Tigard Water Partnership River Intake Plant Approximate Locations and Quantities of PGE Equipment Fahibit I By: Ken Spencer, PE 503.949.7007