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Legislation #: 080068 Introduction Date: 1/17/2008
Type: Ordinance Effective Date: 1/24/2008
Sponsor: None
Title: Authorizing the City Attorney to execute an amendment to a contract with Kamlet Shepherd _ Reichert, LLP. for legal services connected to the possible purchase of Aquila by Great Plains Energy and the negotiation of a new franchise with Aquila, and potentially KCPL, to provide electric service within the City in an amount not to exceed $400,000.00; estimating revenue and appropriating revenue in the amount of $400,000.00 from the Unappropriated Fund Balance of the General Fund; and recognizing an emergency.

Legislation History
DateMinutesDescription
1/16/2008 Filed by the Clerk's office
1/17/2008 Referred to Finance and Audit Committee
1/23/2008 Advance and Do Pass, Debate
1/24/2008 Passed

View Attachments
FileTypeSizeDescription
080068.pdf Authenticated 99K Authenticated
Fact Sheet-Kamlet 2.xls Fact Sheet 59K Fact Sheet
Fiscal note-Kamlet.xls Fiscal Note 40K Fiscal Note

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ORDINANCE NO. 080068

 

Authorizing the City Attorney to execute an amendment to a contract with Kamlet Shepherd & Reichert, LLP. for legal services connected to the possible purchase of Aquila by Great Plains Energy and the negotiation of a new franchise with Aquila, and potentially KCPL, to provide electric service within the City in an amount not to exceed $400,000.00; estimating revenue and appropriating revenue in the amount of $400,000.00 from the Unappropriated Fund Balance of the General Fund; and recognizing an emergency.

 

WHEREAS, the City engaged the law firm of Kamlet Shepherd & Reichert, LLP to assist in the negotiation of a new franchise with Aquila for the provision of electric service in parts of the City; and

 

WHEREAS, during the initial stages of this process Aquila and Great Plains Energy announced a proposed acquisition of Aquila by Great Plains Energy; and

 

WHEREAS, this announcement caused additional and unanticipated needs for legal services beyond the negotiation of a new franchise; and

 

WHEREAS, to protect the Citys interest in providing a modern electric franchise for the territory served by Aquila and to express the Citys desire to the State regulators of the need to address the current KCP & L franchise enacted in 1881, the City has actively participated in the proceedings at the Missouri Public Service Commission; and

 

WHEREAS, the unexpected proposed acquisition of Aquila by Great Plains Energy has caused the City to incur additional attorneys fees and will require additional representation in the future; and

 

WHEREAS, one goal of the Citys participation in the current matter before the Missouri PSC is the restructuring of the multiple number of accounts and rates charged the City to enable the City to reduce electric costs; and

 

WHEREAS, funding for this contract amendment is identified from electric utility franchise fees paid the City in this fiscal year in excess of the amounts anticipated and budgeted; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Contract Amendment. That the City Attorney is authorized to execute an amendment to the contract with Kamlet Shepherd & Reichert, LLP increasing the possible compensation from $200,000.00 to an amount not to exceed $600,000.00 reflecting the additional services required to participate in the proposed acquisition of Aquila by Great Plains Energy.

 

Section 2. Estimation of Revenue. That revenue in the following account of the General Fund is hereby estimated in the following amount:

 

08-1000-120000-453000 Power and Light Companies $400,000.00

 

Section 3. Appropriation of Funds. That $400,000.00 is appropriated from the Unappropriated Fund Balance of the General Fund to the following account in the General Fund:

 

08-1000-131500-B Legal Services $400,000.00

 

Section 4. Emergency. That this ordinance appropriates money and is hereby recognized to be an emergency measure within the meaning of Section 503 of the Charter of Kansas City, and as such shall become effective in accordance with that section.

 

_____________________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Wanda Gunter

Acting Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

William Geary

Assistant City Attorney