HomeMy WebLinkAbout10398RESOLUTION NO. 10398
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONFIDENTIALITY
AGREEMENT TO OBTAIN FINANCIAL AND OTHER INFORMATION RELATIVE TO THE
EVALUATION OF THE POTENTIAL ACQUISITION OF COLORADO ELECTRIC FROM AQUILA,
INC., A COLORADO ELECTRIC UTILITY. UPON RECEIPT AND INITIAL EVALUATION OF
AQUILA DATA, THE CITY MANAGER WILL THEN RECOMMEND TO COUNCIL OPTIONS TO
PROCEED OR NOT TO PROCEED WITH THE EVALUATION OF POTENTIAL ACQUISITION
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The City Manager is hereby authorized to execute a Confidentiality Agreement between the
City of Pueblo and Aquila, Inc. relative to the potential acquisition of Colorado Electric from Aquila,
Inc.
SECTION 2
Upon receipt and initial evaluation of Aquila data, the City Manager will present to the City
Council recommendations and options to proceed or not to proceed with further evaluation toward
potential acquisition.
SECTION 3
This resolution does not bind the City to any further negotiations or require the City to make
a proposal for the acquisition of the Colorado Electric Utility from Aquila, Inc.
INTRODUCED May 9, 2005
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Councilperson
APPROVED:
PRES1DENT 9F CITY C IL
ATTESTED BY:
CITY CLERK
Mkjj1 Man
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Background Paper for Proposed
RESOLUTION
&o0. -et 10399
AGENDA ITEM a 0
DATE:
May 9, 2005
DEPARTMENT: CITY MANAGER'S OFFICE
DAVE GALLI, CITY MANAGER
DOUG FITZGERALD, ASSISTANT CITY MANAGER
TITLE
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONFIDENTIALITY AGREEMENT TO OBTAIN FINANCIAL AND OTHER
INFORMATION RELATIVE TO THE EVALUATION OF THE POTENTIAL ACQUISITION
OF COLORADO ELECTRIC FROM AQUILA, INC., A COLORADO ELECTRIC UTILITY.
UPON RECEIPT AND INITIAL EVALUATION OF AQUILA DATA, THE CITY MANAGER
WILL THEN RECOMMEND TO COUNCIL OPTIONS TO PROCEED OR NOT TO
PROCEED WITH THE EVALUATION OF POTENTIAL ACQUISITION.
ISSUE
Aquila, Inc. has indicated that their electric utility business in Colorado is
potentially for sale. The first step in evaluating the potential purchase of
Colorado Electric Utility by the City of Pueblo is to execute a Confidentiality
Agreement to obtain the necessary information to analyze the prospective
purchase. This resolution will authorize the City Manager to sign the
Confidentiality Agreement. The City Manager, upon obtaining the confidential
information, will advise the City Council on the potential cost/benefits of acquiring
the Colorado Electric Utility from Aquila, Inc. The City Manager will present to the
City Council the potential costs, which might be incurred if the City Council elects
to proceed.
RECOMMENDATION
Placed on the agenda at the request of Council Member Occhiato.
FINANCIAL IMPACT
There is no financial impact with the signing of the confidentiality agreement.