§ 13.12.100. Contract sales and purchases.

A.

The Director of the Public Works and Utilities Department shall have the authority to enter into special contracts covering electric power service, purchases, and sales, at rates other than specified in this chapter, to meet specific operating conditions, provided that such rates recover the cost of providing the service, and provided that the City Manager, Mayor and Council members of the Utility Advisory Committee are notified, and provided that such contracts have a term of no more than 90 days before formal adoption by the City Council.

B.

The Director of the Public Works and Utilities Department shall have the authority to enter into the following contracts, provided that such contracts do not exceed a term of five years:

1.

Guaranteed annual revenue contracts designed to repay capital outlay and service costs.

2.

Facilities construction contracts for contributions in aid of construction and for revenues from jobbing and contract work as follows:

a.

As a condition of construction of Public Works and Utilities Department electrical facilities, including, but not limited to, substations, meter extensions, distribution systems, and services to provide permanent service to any new construction, development, mobile home park or facility, the owner or developer requesting such service may be assessed a facilities charge.

b.

The facilities charge shall be equal to 50 percent of the estimated cost of the system, if the estimated cost is over $5,000.00 as estimated by the Engineering Division of the Public Works and Utilities Department.

c.

This facilities charge shall not apply to local improvement districts, or to federal, state, county or local government entities; provided that the government provides a purchase order for billing.

d.

The actual cost of the system may include the cost of using or providing substation capacity, if any, for the system.

e.

Prior to construction of any such electrical facilities, the amount of such facilities charges shall be estimated by the Engineering Division of the Public Works and Utilities Department, and such estimated amount shall be billed to and paid by the developer or owner prior to commencement of any such construction. Any balance remaining shall be refunded to or collected from the developer or other, as the case may be, upon completion of construction and determination of the actual cost thereof. Any balance remaining shall be collected before any reimbursements are given.

3.

Frontage and lot reimbursement contracts for customers where facilities are installed in the dedicated public street and customers have donated public right-of-way and paid for construction of the facilities.

4.

Contracts with the Washington State Department of Transportation designed to recover the City's cost of traffic signal maintenance services for state owned facilities.

C.

The City Manager is authorized to enter into contracts for the sale and purchase of energy and demand, subject to the following conditions: 1) the value of the purchase or sale is less than $100,000.00; 2) the duration of the contract is 31 days or less; 3) the City Manager reports to the City Council the details of the contract at the first regular City Council meeting that follows formation of the contract; and 4) such contract is expected to provide economic or operational benefits to the City's electric customers.

(Ord. 3539 § 1, 9/1/2015; Ord. 3436 § 2, 9/20/2011; Ord. 3347 § 2, 1/1/2009; Ord. 3218 § 2 (part), 10/1/2005; Ord. 3145 § 1 (part), 10/1/2003; Ord. 3089 § 1 (part), 11/1/2001; Ord. 2369 § 3, 1/3/1986; Ord. 2431 § 2, 5/28/1985)

Editor's note

Formerly codified as § 13.12.080, which was renumbered by Ord. 3539 .