HomeMy WebLinkAboutResolution 2007-176 western area power administration 2017 hoover dam power contractsMARANA RESOLUTION N0.2007-176
RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
A COMMON INTEREST IN ANTICIPATION OF LITIGATION JOINT PARTICIPATION
AGREEMENT RELATING TO THE WESTERN AREA POWER ADMINISTRATION 2017
HOOVER DAM POWER CONTRACTS; AND DECLARING AN EMERGENCY.
WHEREAS the Western Area Power Administration will enter into new contracts for power
generated at Hoover Dam in 2017; and
WHEREAS Hoover power contracts have provided for the acquisition of power at rates
significantly below normal commercial market rates; and
WHEREAS the proposed agreement would allow the Town to participate with the Arizona
Power Authority in developing confidential legal strategies to assure that Arizona and entities
within Arizona that are entitled to receive Hoover power obtain that power under the most favor-
able possible terms and to minimize the risk that Hoover power will be reallocated disproportion-
ately to other states; and
WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of
the public to execute this agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, that the Common Interest in Anticipation of Litigation Joint Participation
Agreement attached to and incorporated by this reference in this resolution as Exhibit A is hereby
approved, and the Mayor is hereby authorized to execute it for and on behalf of the Town of Marana.
IT IS FURTHER RESOLVED that the Town's Manager and staffare hereby directed and au-
thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga-
tions, and objectives of the intergovernmental agreement.
PASSED and ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this
16th day of October, 2007. ~?
Mayor Ed Honea
ATTEST:
celyn C ronson, Town Clerk
TO FORM:
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COMMON INTEREST IN ANTICIPATION OF LITIGATION JOINT
PARTICIPATION AGREEMENT
This Common Interest In Anticipation Of Litigation Joint Participation Agreement
(hereinafter "Agreement") is entered into by and among the undersigned entities (individually
"Member", and collectively, "Members" or the "Common Interest Group") as represented by
their respective undersigned counsel. This Agreement memorializes certain understandings
reached among Members and their counsel with respect to their common interests in connection
with the subject matter about which litigation is anticipated.
The Members are preparing to participate in a federal process or processes conducted by
the Western Area Power Administration- ("Western") leading to contracts for power generated at
Hoover Dam pursuant to the Boulder Canyon Project Act, as amended, 43 U.S.C. § 617, et seq.
and other applicable federal law for the period beginning October 1, 2017 (the "Hoover
Proceedings").
Given the past history of litigation over similar contracts (see State of Nevada, the State
of Arizona and its Arizona Power Authority v. United States of America, Civ LV82-441-RDF
(D.C. Nev. 1982)), and the high level of interest akeady expressed in the anticipated electric
power contracts, the Common Interest Group anticipates that the Hoover Proceedings may result
in litigation.
The Members through their counsel wish to work cooperatively and to pursue their
common interest in developing strategy related to the Hoover Proceedings and anticipated future
litigation. The Members believe that sharing of confidential and privileged information and
documents among themselves through their attorneys will be mutually beneficial to the Members
in the pursuit of their interests and objectives.
Serious legal, factual and administrative issues must be addressed in anticipation of an
adversarial federal administrative process and associated litigation which prior history
demonstrates is likely to occur. The Members have a common interest in the proper resolution
of those issues and believe it to be in their interests to coordinate their efforts and the efforts of
their respective counsel.
The undersigned counsel consider that mutual disclosure among themselves and their
respective clients of matters of common concern in this undertaking is essential to the effective
representation of their respective clients and, therefore, the Members agree as follows:
These understandings which are the subject of this Agreement are to further the
Members' common legal interest that the State of Arizona acting through Arizona Power
Authority or any successor entity, will receive the maximum available share of Hoover power.
Any exchange of information in connection with such-joint efforts is not intended to
waive any attorney/client or attorney work product privilege, or other protection from disclosure
to third parties which may be otherwise available. Accordingly, it is the intention and
understanding of the Members and their counsel that all work product of or communications
made between any member of a "client set" and a member of another "client set" see
Restatement (Third) of the Law Governing Lawyers §§ 70, 76 cmt. d) relating to the
development and implementation of common strategies, whether offensive, defensive, or
negotiation-related, including but not limited to information and communication contained in
documents, memoranda, correspondence, drafts, notes, reports, factual summaries, transcript
digests, communications among counsel, or counsel and clients including their employees,
consultants, board members and advisors, any joint or several interview of prospective witnesses,
or the sharing or exchange via any media, including but not limited to electronic media, as well
as any other material and information which would otherwise be protected from disclosure to
third parties are, and will remain, confidential and protected from disclosure to any third party by
their clients' respective attorney-client and attorneys' work product privileges ("Privileged
Communications"). A "client set" consists of a Member, the Member's agent for
communication, the Member's counsel, and the counsel's agent. This Agreement however is not
Privileged Communications.
All work performed by the undersigned counsel and their respective firms and
consultants pursuant to this Agreement and communications among the undersigned counsel and
their consultants and/or clients in connection with this undertaking shall be conducted and
protected pursuant to the attorney-client privilege and work product doctrine as recognized in
Arizona.
The Members acknowledge and agree that this Agreement is intended to facilitate the
exchange of information and ideas among counsel and employees, assistants and professionals
engaged from time to time by any of them, which exchange of information and ideas is deemed
essential to the development of a common strategy or strategies, both offensive and defensive or
negotiation-related, with respect to the Hoover Proceedings. Any Privileged Communications
exchanged by counsel pursuant to this Agreement shall not be used by any Party for purposes
unrelated to the Hoover Proceedings. The Members acknowledge and agree that the attorney-
client privilege and work product doctrine shall apply to all Privileged Communications. It is
intended that all Privileged Communications remain confidential in accordance with the terms of
this Agreement, and it is on this basis that all Privileged Communications are made between and
among the respective counsel and employees, assistants and professionals engaged by them.
The Members and their counsel will make all reasonable efforts to maintain the
confidentiality of the Privileged Communications. Each Member agrees to maintain the
confidentiality of all Privileged Communications and shall also instruct counsel that none of the
Privileged Communications obtained or developed by any of the Members, counsel, employees,
assistants and professionals as a result of this Agreement shall be disclosed to third parties
without the consent of the undersigned Members and counsel.
Modifications of this Agreement can be made if such modifications are in writing and are
signed by all of the counsel signatory to this Agreement.
Entities who are eligible to receive Hoover power under either Title 30 or Title 45 of the
Arizona Revised Statutes and who have a common interest may join the Common Interest Group
on or before October 26, 2007. Additional entities who are eligible to receive Hoover power
under either Title 30 or Title 45 of the Arizona Revised Statutes and who have a common
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interest, as well as their counsel may be added to the Common Interest Group as Members of this
Agreement subsequent to October 26, 2007 upon execution of this Agreement and with the
unanimous written consent of all counsel then signatories to this Agreement and upon execution
of an addendum to this Agreement. Additional Members and their counsel executing an
addendum to this Agreement agree to and shall be bound by the terms and conditions of the
Agreement the same as if they had executed the Agreement initially.
Any Member or counsel receiving athird-party request or demand for disclosure of
Privileged Communications subject to this Agreement shall report such request forthwith to all
signatory counsel and shall utilize all reasonable means. and legal processes to maintain the
confidentiality of such communications, including but not limited to opposing any requests for,
or motions to compel production of such communications, or, when appropriate, seeking a
protective order to prevent disclosure of such communications.
Any Member is free to withdraw from this Agreement upon that Member's counsel
giving written notice to all other Members and counsel to this Agreement. Withdrawal shall be
effective as of the date of the notice. The withdrawing Member or counsel shall no longer be
entitled to receive Privileged Communications. Concurrently with such notice, a withdrawing
Member or counsel shall return all Privileged Communications and copies thereof. Members and
counsel agree that any privilege by which the confidentiality of any materials and copies is
protected shall remain in full force and effect during and subsequent to such withdrawal and the
withdrawing Member or counsel shall be obligated to protect such privilege.
The Members agree that this Agreement shall remain in effect until completion of the
Hoover Proceedings or any litigation to final non-appealable judgment or to final negotiated
resolution related to such proceedings, whichever is later. All Privileged Communications
provided to a Member or counsel shall be returned, if requested by the furnishing Member or
Member's counsel, at the conclusion thereof.
By signing this Agreement, each of the undersigned counsel certifies that the contents of
this Agreement have been explained to each counsel's respective client(s) and that each client
becoming a Member by execution of this Agreement agrees to abide by the understandings
reflected herein. Nothing contained herein shall be deemed to create anattorney-client
relationship or duty of loyalty between any counsel and anyone other than the client of that
counsel either expressly or by implication.
Each Member executing this Agreement also certifies that it has relied upon the advice of
its own counsel, and also knowingly waive(s) any and all claims of conflict of interest that may
arise between or among the Members during any administrative proceedings, preparation or
participation, trial preparation, conduct of trial, subsequent appeal or negotiations toward
settlement. It is explicitly understood that the obligations between counsel and client are not
waived by this provision. -
This Agreement is effective in its original form as of the date of execution indicated next
to the signature of each Member and its counsel below and, as to any additional Member added
to the Common Interest Group, as of the date of execution by that new Member and its counsel.
This Agreement may be executed in multiple counterparts, each signature being made part of the
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whole Agreement as if executed as one document. Original, facsimile, and electronic signatures
are sufficient and may be employed to execute this Agreement.
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A315#100/Final Common Interest Agreement 9 10 07