June 27, 2006

The Hon. Jean Godden
Chair, Energy & Technology Committee
Seattle City Council
P.O. Box 34025
Seattle City Hall
600 4th Ave., 2nd Floor
Seattle Washington 98124-4025

Re: Proposed Ordinance regarding City Light Advisory Committee

Dear Chairperson Godden:

We are writing to express our concerns regarding draft ordinance #10 dated
5/30/06 that would continue some aspects of the expert City Light Advisory
Board that expired on January 31 of this year. The draft ordinance would impair
the independent function exercised by the pre-existing Board by placing
inappropriate limitations their authority to identify and assess important issues
and would significantly limit their ability to communicate publicly critical
findings and recommendations. We would not recommend that anyone serve on
the Advisory Board with the restrictions in the proposed ordinance because we
believe that the Advisory Board would likely become nothing more than window
dressing.

The Municipal League has been monitoring the affairs of Seattle City Light since
the energy crisis of 2000-2001. In our March 2002 study entitled “Seattle City
Light and the Storm”, the League recommended the selection of an outside
consultant to review management’s performance in the crisis. We later supported
leadership change and the creation of the City Light Advisory Board to offer
independent expert advice to the Mayor, the City Council, and the new
Superintendent.

In our view, City Light is more than just another City department. It is a business
enterprise whose financial health and stability are essential to the economic
vitality of Seattle and its citizens.

The utility operates in a volatile marketplace where short-term shifts in weather,
energy prices or regional energy politics can have a profound effect on ratepayers.
Our concept, in recommending the formation of the City Light Advisory Board, is
to have the Board’s experts maintain a steady gaze on the long-term health of the
utility. Elected officials need independent advice to be able to identify problems
which need immediate attention and remedy.

Accordingly, we recommend the following changes to paragraph 2 of the proposal
in ordinance to preclude any confusion about appropriate advocacy by Board
members.

Section 2. Mission of the Advisory Committee. The mission of the Advisory
Committee is to provide expert advice to the Mayor, City Council, and City Light
Superintendent in accordance with Section 3. No member of the Advisory
Committee shall advocate [deleting (on any issues or serve as a voice)] for any
special interest groups when functioning as an Advisory Board member. To help
ensure that the Advisory Committee will fulfill its mission, the Advisory
Committee shall (i) hold regular public meetings and keep a written record of
proceedings which shall be a public record and (ii) select a Chair from among its
members and adopt rules and procedures necessary to accomplish its purpose,
including quorum requirements and the frequency of meetings.

We recommend continuation of Section 3 of Ordinance 121059 which provides as
follows:

Section 3. Scope of Work and Reporting Requirements. The Advisory Board
shall develop its annual scope of work in consultation with the Mayor, City
Council and City Light Superintendent. The annual scope of work of the Board
should include an emphasis on items included in the City Light and City Council
Energy and [Technology] Committee work program
We are concerned that the language in Section 3 of the proposed ordinance would
allow for an elected official to control the Advisory Board’s agenda by barring
certain important policy concerns from the advisory agenda. If the Council or
Mayor wishes to preclude the Advisory Board from addressing governance issues,
the ordinance could explicitly provide that governance issues will not be included
in the agenda unless inclusion is requested by the appropriate Council committee
or the Mayor.

We would also recommend continuation of Section 5 of the prior ordinance which
provides for staff support as follows:

Section 5. Staff Support for Advisory [Committee]. The Executive will provide
logistical support, including scheduling of meetings, preparation of agendas,
organization of meeting materials and recording of meeting minutes. Within the
time constraints imposed by their other responsibilities, both Executive and
Council staff will be available at the discretion of the [Committee] to assist them
in their analysis and deliberations.

We want to assure that the Advisory Board has sufficient independence to attract
the best talent possible to provide expert advice on how to ensure the long term
health of the utility.

We hope you will keep this larger goal in mind as you work through the various
details of the ordinance which would reinstate a City Light advisory committee.
If you or other councilmembers would like to discuss this in further detail, please
contact our City Light Chair, Bruce Carter, at (206)-285-5556 or via e-mail at
brucedcarter@hotmail.com.

Sincerely yours,

Steve Marshall
Chair, Municipal League of King County

Bruce D. Carter
Chair, Municipal League Seattle City Light Subcommittee

Cc: Seattle City Council Members, Mayor, Municipal League Board Members