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Temporary Agreement Between the City of Dubuque and ITC Midwest, LLC to Operate an Electric Transmission System in the City of Dubuque Copyrighted October 2, 2023 City of Dubuque Consent Items # 08. City Council Meeting ITEM TITLE: TemporaryAgreement Between the City of Dubuque and ITC Midwest, LLC to Operate an Electric Transmission System in the City of Dubuque SUM MARY: Senior Council Barry Lindahl recommending City Council adopt the resolution approving the temporaryAgreement authorizing ITC Midwest, LLC to operate an electric transmission system in the City of Dubuque until the franchise agreement takes effect but no later than December 31, 2023. RESOLUTION Approving an Agreement between the City of Dubuque and ITC Midwest, LLC to operate an Electric Transmission System in the City of Dubuque SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Staff Memo Staff Memo Resolution Resolutions Agreement Supporting Documentation Dubuque THE CITY OF � All•Aiaerica Cily DuB E .�..� ����..�w � I.� ��� � � MGIstP ieC� On the MissiSsi i zoo�.zosz•zoi3 �"p pp 2o��*zo�g BARRY A. LINDAHL, ESQ. SENIOR COUNSEL MEMO To: Mayor Brad M. Cavanagh and Members of the City Council DATE: September 18, 2023 RE: Temporary Agreement Between the City of Dubuque and ITC Midwest, LLC to Operate an Electric Transmission System in the City of Dubuque While the City and ITC Midwest, LLC are negotiating the terms of the franchise agreement, it is necessary for ITC Midwest to have authority to operate its transmission system. The City and ITC Midwest have not yet finalized the franchise agreement. It is expected that the final franchise agreement will be submitted to the City Council for approval in December 2023. I recommend that the City Council adopt the attached resolution approving the temporary Agreement authorizing ITC Midwest, LLC to operate an electric transmission system in the City of Dubuque until the franchise agreement takes effect but no later than December 31, 2023. BAL:JLM Attachments cc: Michael C. Van Milligen, City Manager Crenna Brumwell, City Attorney Gus Psihoyos, City Engineer Steve Brown, Project Manager OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944 TE�EPHONE (563)583-4113/FAx (563)583-1040/EM,4�� balesq@cityofdubuque.org RESOLUTION NO. 326 - 23 APPROVING AN AGREEMENT BETWEEN THE CITY OF DUBUQUE AND ITC MIDWEST, LLC TO OPERATE AN ELECTRIC TRANSMISSION SYSTEM IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque, Iowa (City) and ITC Midwest, LLC (ITC Midwest) have tentatively entered into an Agreement for the operation of an electric transmission system in the City of Dubuque until such time as City and ITC Midwest finalize a franchise agreement to operate the system; and WHEREAS, the City Council finds that it is in the best interests of the City of Dubuque to approve the Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: SECTION 1. The attached Agreement is hereby approved. SECTION 2. The City Manager is authorized and directed to sign the Agreement on behalf of the City of Dubuque. Passed, approved, and adopted this 2nd day of October, 2023. ra M. Cavanag yor Attest: Trish Gleason, Assistant City Clerk AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND ITC MIDWEST LLC, A WHOLLY OWNED SUBSIDIARY OF ITC HOLDINGS CORP. This Agreement, dated for reference purposes the _____ day of ________________ , 2023, is made and entered into by and between the City of Dubuque, Iowa (City) and ITC Midwest LLC, a wholly owned subsidiary of ITC Holdings Corp. (the Company). WHEREAS, the Company operates a system for the transmission of electric power in the City of Dubuque, Iowa along, under and upon the streets, avenues, alleys and public places in the City of Dubuque, Dubuque County, Iowa (the Transmission System); and WHEREAS, City and the Company are negotiating a franchise agreement for the Transmission System; and WHEREAS, during the period of such negotiations, and in consideration for the City’s consent to the Company to operate the Transmission System, City and the Company agree as follows: SECTION 1. TERM. This Agreement shall take effect upon execution by both parties and shall continue in effect until a franchise agreement between the parties takes effect, but no later than December 31, 2023. SECTION 2. INDEMNIFICATION. A. The Company shall indemnify, defend and hold City, its officers and employees, harmless from and against any and all claims, demands, losses, damages, cost and expenses (including, but not limited to, court costs, fines, penalties and reasonable attorneys' fees, but excluding consequential or indirect damages), judgments, liabilities and causes of action of any nature whatsoever resulting from or relating to its negligent acts or omissions in the use or occupancy of the streets, avenues, alleys and public places in the City arising in any manner out of the negligent acts or omissions of its agents, employees, or contractors in connection with same, or with respect to the violation of any laws, including without limitation, any environmental laws. The Company shall indemnify and defend City for, from and against any and all mechanics' liens and other liens and encumbrances filed by any person claiming by, through or under the Company and against all costs, expenses, losses and liabilities (including reasonable attorneys' fees) incurred by City in connection with any such lien or encumbrance or any action or proceeding brought thereon. 27th September 2 B. The Company shall maintain commercial general liability insurance coverage, or its equivalent, throughout the term of this Agreement as described in the attached Insurance Schedule, as such schedule may from time to time be amended by City. The Company's failure to meet the insurance requirements shall not relieve the Company of its responsibilities under this Agreement. Upon proof of financial responsibility to the reasonable satisfaction of City, the Company may be allowed to self-insure the coverages required. The Company shall provide City with certificates of insurance or letter of self-insurance, subject to the approval of City in its sole discretion, upon request. C. The requirements of indemnification shall not be a waiver of any right that City would have to assert defenses o n its own behalf under state or federal law. The Company's indemnification obligations under this Agreement shall survive the expiration, cancellation, or termination of this Agreement in accordance with applicable statutes of limitation in force within the state of Iowa. SECTION 3. COMPLIANCE WITH CITY ORDINANCES. The Company shall at all times during the term of this Agreement conform with, submit to, and carry out the provisions of any and all valid ordinances existing or as hereafter lawfully enacted relating City's exercise of its police powers. SECTION 4. MATERIAL BREACH. City may terminate this Agreement if the Company shall be materially in breach of its provisions. Upon the occurrence of a material breach, City shall provide the Company with notification by certified mail specifying the alleged breach. The Company shall have sixty (60) days to cure the breach, unless it notifies City, and the parties agree upon a longer period for cure. If the breach is not cured within the cure period, City may terminate this Agreement. CITY OF DUBUQUE, IOWA ITC MIDWEST LLC, a Michigan limited liability company By: ITC Holdings Corp., its sole member By: ________________________ By: _______________________________ Michael C. Van Milligen Dusky Terry City Manager Vice President ITC Holdings Corp, and President, ITC Midwest Attest: Trish Gleason, Assistant City Clerk 3 INSURANCE SCHEDULE 4 5 6 7