INTERGOVERNMENTAL COOPERATION AGREEMENT ESTABLISHING A MULTI-MUNICIPAL LITIGATION CONSORTIUM THIS AGREEMENT, is made and entered by and between the CITY OF LANCASTER, having an address at 120 North Duke Street, PO Box 1599, Lancaster, PA 17608; the CITY OF READING, having an address at 815 Washington Street, Reading, PA 19601; the CITY OF ALLENTOWN, having an address at 435 Hamilton Street, Allentown, PA 18101; the BOROUGH OF CARLISLE, having an address at 53 W. South Street, Carlisle, PA 17013, and the BOROUGH OF COLUMBIA, having an address of 308 Locust Street, Columbia, PA 17512, municipal corporations organized and existing under the laws of the Commonwealth of Pennsylvania (hereinafter collectively the Municipalities ). W I T N E S S E T H: WHEREAS, the Municipalities desire to collectively associate themselves together in and by virtue of this Agreement, to create a litigation consortium to defend certain rights and to assert such obligations as the Municipalities have to protect historic resources located within their respective territorial limits; and WHEREAS, the Municipalities desire to cooperate with the intent to commence litigation regarding certain regulatory enactments of the Pennsylvania Public Utility Commission which the Municipalities find to be contrary to their respective interests in protecting their historic resources; and {7501-11R-92/00136941-1} 1
WHEREAS, the parties desire to enter into this Agreement pursuant to Article 9, Section 5 of the Pennsylvania Constitution and the Act commonly referred to as the Intergovernmental Cooperation Act, 53 Pa.C.S.A. 2301, et seq.; and WHEREAS, the Municipalities find it to be in the collective best interest of their residents, property owners, and citizens to cooperate to in a coordinated challenge to the regulatory enactments herein referred; NOW THEREFORE, for and in consideration of the mutual promises herein contained, the parties, intending to be legally bound hereby, agree as follows: ARTICLE I FORMATION OF LITIGATION CONSORTIUM 1. Pursuant to the Intergovernmental Cooperation Act, 53 Pa.C.S.A. 2301, et seq., the Municipalities hereby agree to cooperate and associate themselves together for the purpose of creating a Litigation Consortium (hereinafter Consortium ), consistent with the terms of this Agreement. 2. The Consortium shall be under the direction and control of a Steering Committee, which shall be comprised of one (1) member appointed by each of the member Municipalities. Members shall serve a term of two (2) years, subject to replacement by the municipality appointing such member, either with or without cause or by virtue of resignation, by majority vote of the appointing municipality. Members of the Steering Committee shall serve without compensation. 3. The Steering Committee may elect a chair and such other officers as deemed necessary to carry out the purposes of this Agreement. The Steering Committee shall be entitled to {7501-11R-92/00136941-1} 2
establish internal operating rules, including rules governing meetings of the Committee, subject to Pennsylvania public meeting requirements. 4. The Steering Committee shall meet to organize its membership within thirty (30) days of the date of final ratification of this Agreement by all Municipalities. 5. The Municipalities agree that the Steering Committee shall have the sole authority to commence litigation on behalf of and in the name of the Municipalities comprising the Consortium, and to take all such other acts as may be required to proceed with the litigation of claims as defined under this Agreement. 6. The Municipalities agree to delegate to the Consortium and Steering Committee the authority to solicit and retain counsel and expert witnesses, to set and approve rates for services on behalf of the Consortium, and to take any other such acts as may be needed to effect the purposes of this Agreement on behalf of the Consortium and its member Municipalities. 7. The Steering Committee shall further have final authority to settle, discontinue and end any litigation commenced under this Agreement on behalf of the Consortium, provided, however, that the Steering Committee shall be required to obtain the consent of each Municipality prior to entering into any settlement requiring the payment of any sum by any Municipality. 8. The Consortium may be expanded to include additional municipalities, consistent with the terms of the Intergovernmental Cooperation Act, 53 Pa.C.S.A. 2301, et seq., and subject to the terms of this Agreement. ARTICLE II SCOPE OF LITIGATION {7501-11R-92/00136941-1} 3
1. The Municipalities agree that the purpose of this Agreement shall be to authorize the Consortium to challenge certain regulatory enactments of the Pennsylvania Public Utility Commission, and specifically Section 59.18 of the Pennsylvania Code, which the Municipalities find to be contrary to the best interests of their respective residents and property owners. 2. The Consortium shall have authority to commence an action in declaratory judgment in the Commonwealth Court of Pennsylvania, in the name of the respective Municipalities, concerning the validity of Section 59.18, and to take such other or further action consistent with the purposes of this Agreement as recommended to the Consortium by legal counsel. ARTICLE III COST ALLOCATION 1. The Consortium shall be funded through periodic contributions by the member Municipalities, as determined by the Steering Committee consistent with this Agreement. 2. Upon execution of this Agreement, the Steering Committee shall take such steps as necessary to establish a separate bank account for purposes of paying the costs associated with the litigation contemplated under Article II. In lieu of establishing a separate account, the Steering Committee may agree to designate one (1) member Municipality as the dedicated agent to accept and receive funds on behalf of the Consortium, and to pay any and all such expenses as approved by the Steering Committee. In the event that a Municipality shall be designated to act as agent for the Consortium under this paragraph, the Municipality shall be obliged to pay any and all invoices as directed by the Steering Committee, without exception. {7501-11R-92/00136941-1} 4
3. The Steering Committee shall, within thirty (30) days of its appointment and organization, prepare and approve a proposed litigation budget comprising the anticipated expenses for counsel, expert witness fees, court costs and other charges for the period comprising the litigation anticipated to occur in the Commonwealth Court of Pennsylvania (the litigation budget ). Thereafter, and to the extent necessary, the Steering Committee shall prepare subsequent updates to the litigation budget such that each of the Municipalities shall have notice of anticipated expenses for the following calendar year not later than August 30 of each year. Thereafter, the Municipalities shall notify the Steering Committee, not later than October 1, whether the Municipality approves or disapproves of the litigation budget. The litigation budget shall be deemed approved if approved by a majority of the Municipalities. If the litigation budget is disapproved, the Steering Committee shall revise the litigation budget and resubmit for approval by the Municipalities not later than November 1. If a proposed litigation budget is not approved under this paragraph by November 30 of any year, then, in that event, each Municipality shall pay the amount of cost allocated for the prior year, without alteration. 4. The anticipated costs projected under the litigation budget will be apportioned to each Municipality according to population, by adding the total population of each Consortium Municipality as determined by the most recent decennial census figures published by the U.S. Census Bureau and dividing the total population of all Consortium Municipalities into the total litigation budget to determine a dollar number per capita. Each Municipality shall pay its per capita share of the litigation budget according to population. All payments under this paragraph shall be completed by April 30 of each {7501-11R-92/00136941-1} 5
year. Notwithstanding the foregoing, until such time as the Steering Committee has collected the payments provided under this paragraph, the Steering Committee may invoice each of the Municipalities, in accordance with the allocation method provided under this Article, and may collect payments for any expenses incurred by the Steering Committee under this Agreement. Such invoices shall be payable within 30 days. 5. The Steering Committee shall provide an annual accounting of all revenues and expenses to the Municipalities by January 31 of the succeeding year. 6. Any excess funds not expended by the Steering Committee during the course of any litigation contemplated under this Agreement shall be refunded to the Municipalities at the conclusion of such litigation. 7. Cost allocations shall be subject to adjustment, from time to time, in the event that additional municipal parties agree to join the Consortium. ARTICLE IV ADMISSION OF ADDITIONAL MEMBERS 1. At any time prior to the commencement of litigation under this Agreement, and thereafter in the discretion of the Steering Committee, additional municipalities may elect to join the Consortium, in accordance with the requirements of the Intergovernmental Cooperation Act, 53 Pa.C.S.A. 2301, et seq. 2. Municipalities joining the Consortium may be responsible for the payment of an initial entry fee as determined by the Steering Committee, and thereafter for their proportionate share of the litigation budget as provided under Article III. ARTICLE V AGREEMENT NOT TO WITHDRAW {7501-11R-92/00136941-1} 6
1. The Municipalities agree that, upon commencement of litigation as contemplated under Article II, no Municipality shall withdraw from the Consortium without the consent of a majority of all other Consortium Municipalities. ARTICLE VI ADOPTION 1. The Municipalities agree to advertise and adopt an ordinance authorizing acceptance this Agreement as required by the Intergovernmental Cooperation Act. ARTICLE VII MISCELLANEOUS 1. This Agreement shall be governed by and construed under the laws of the Commonwealth of Pennsylvania. 2. In the event any provision of this Agreement shall be found to be void, invalid or unenforceable by a court of competent jurisdiction then, in that event, this agreement shall be deemed severable, such that the remaining portions and provisions of this Agreement shall remain fully enforceable, notwithstanding the void, invalid or unenforceable provision. 3. This Agreement may be executed in Counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument and Agreement. 4. This Agreement shall become effective upon approval by all of the Municipalities as provided under Article VI. [SIGNATURES FOLLOW ON NEXT PAGE] {7501-11R-92/00136941-1} 7
IN WITNESS WHEREOF, the Municipalities have executed this Agreement on the day and date indicated below. CITY OF LANCASTER: By: CITY OF READING: By: CITY OF ALLENTOWN: By: BOROUGH OF CARLISLE: By: BOROUGH OF COLUMBIA: By: {7501-11R-92/00136941-1} 8