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Legislation #: 140423 Introduction Date: 5/29/2014
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing execution of an assignment and assumption of utility franchise agreement with Southern Union Company (“Southern Union”) and Laclede Gas Company (“Laclede”) whereby the City recognizes and consents to the purchase, sale and/or assignment of certain Southern Union assets to Laclede, including the franchise agreement between the City and Southern Union authorized by Ordinance No. 100833.

Legislation History
DateMinutesDescription
5/27/2014 Filed by the Clerk's office
5/29/2014 Referred to Transportation & Infrastructure Committee
6/5/2014 Advance and Do Pass, Consent
6/5/2014 Passed

View Attachments
FileTypeSizeDescription
140423.pdf Authenticated 136K Authenticated
140423 Fact Sheet.pdf Fact Sheet 115K Fact Sheet

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ORDINANCE NO. 140423

 

Authorizing execution of an assignment and assumption of utility franchise agreement with Southern Union Company (“Southern Union”) and Laclede Gas Company (“Laclede”) whereby the City recognizes and consents to the purchase, sale and/or assignment of certain Southern Union assets to Laclede, including the franchise agreement between the City and Southern Union authorized by Ordinance No. 100833.

 

WHEREAS, under Ordinance No. 100833, the City granted a franchise agreement to Southern Union Company to supply, sell and furnish natural gas to the City and its inhabitants for a period of ten years (hereinafter referred to as the “Franchise Agreement”); and

 

WHEREAS, Southern Union and Laclede entered into a certain Purchase and Sale Agreement dated December 14, 2012, (hereinafter referred to as the “PSA”) whereby Laclede purchased certain assets of Southern Union, including its Missouri Gas Energy gas service company operation in the State of Missouri (the “Transaction”); and

 

WHEREAS, the Transaction was approved by the Missouri Public Service Commission in Case No. GM-2013-0254 effective July 31, 2013; and

 

WHEREAS, as part of the Stipulation and Agreement approved by the Missouri Public Service Commission in GM-2013-0254, Laclede agreed to assume all of the rights and responsibilities of the Franchise Agreement from Southern Union upon Closing of the Transaction; and

 

WHEREAS, the Transaction Closing occurred on September 1, 2013; and

 

WHEREAS, in connection with such Transaction and pursuant to the terms and conditions of the Stipulation and Agreement, Southern Union desires to assign all its right and interest in and to said Franchise Agreement to Laclede and to be relieved of its obligations under said Franchise and has requested City to consent to said Assignment and Release of Obligations under the Franchise; and

 

WHEREAS, Laclede Gas Company, which will continue to conduct business in its western service territory as “Missouri Gas Energy” until further notice, is willing to assume all obligations of the Franchise Agreement; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of Public Works is hereby authorized to execute and deliver the Assignment and Assumption of Franchise Agreement and City’s Consent as provided for under the terms of the existing Franchise Agreement on file with the Director of Public Works.

 

Section 2. That the Director of Public Works is hereby authorized to accept the assignment as indicated above from Laclede and to maintain a record of said agreement.

 

_____________________________________________

 

Approved as to form and legality:

 

 

______________________________

Theodore T. Anderson

Assistant City Attorney