2009/09/16 Council Agenda Packet

.n .'_ F. Proposed Aquatic License Article 18 (A-LA 18) states: Subject to compliance with all other license articles, the Licensee shall operate the Project so that the City of Everett's water supply and quality requirements shall have precedence over power generation to the extent specified within the Supplemental Agreement Between Public Utility District No. 1 of Snohomish County and the City of Everett, Washington October 17, 2007, Part E 1. & Exhibit 1. The intention of A-LA 18 is to incorporate this specific limitation on Project operations into the License as a License Article obligation without creating any additional new obligations upon the District or providing the City with new rights with respect to the District's current or future operation of the Project. G. The FERC Settlement Agreement includes as an attachment the Lake Chaplain Tract Off-License Agreement. Consistent with FERC settlement policy, the Lake Chaplain Tract Off-License Agreement, which is not part of the FERC Settlement Agreement, is being submitted to FERC for informational purposes only. NOW, THEREFORE, it is agreed between the parties as follows: 1. City Disputes involving Project Operations. 1.1. The District shall support the inclusion of A-LA 18, without Material Modification, as a term of the New License_ L2. Notwithstanding the provisions of the above referenced 1960 Agreement, 1981 Amended Agreement, Supplemental Agreement, and Second Supplemental Agreement, FERC shall be the sole and exclusive forum for the City to seek specific performance from the.District directly involving the District's operation of the Project so that water supply and quality have precedence over power generation. Nothing in this Third.Supplemental Agreement is intended to or shall be construed to affect or in any way limit the forum(s) that may be available to the District or the City to resolve any other dispute or any other claim. 1.3. In the event that the City commences a proceeding and/or otherwise seeks relief from FERC regarding the District's operation of the Project, such proceedings and/or relief shall be limited to seeking specific performance and enforcement of the Project License. The City shall in no instance propose or support the imposition of any civil monetary penalty by FERC,or any other civil or criminal remedy under Federal Power Act Parts I or III, but shall be limited to seeking specific performance of the Project License. 1.4. Except for emergencies involving the City's municipal water supply, the City shall meet and confer with the District prior to commencing a proceeding and/or seeking relief from FERC as follows: The Parties shall engage in good faith negotiations for a period of at least sixty(60) days in an effort to resolve the 99