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HomeMy WebLinkAbout10993RESOLUTION NO. 10993 A RESOLUTION ENGAGING DIETZE AND DAVIS, P.C. TO PROVIDE LEGAL SERVICES RELATING TO NEGOTIA -TIONS FOR BLACK HILLS /AQUILA ASSET AND FRANCHISE TRANSFER WHEREAS, Aquila, Inc. has entered into agreements to transfer its Colorado electric utility assets and franchises to Black Hills Corporation and has filed an application for approval of such asset transfer with the Public Utilities Commission of the State of Colorado; and WHEREAS, the franchise under which Aquila, Inc. conducts its electric utility activities in the City of Pueblo requires Aquila, Inc. to perform certain acts before such transfer is completed, including, without limitation, obtaining City of Pueblo's approval for such transfer, and WHEREAS, pursuant to Ordinance No. 5640, Aquila, Inc. is required to reimburse the City of Pueblo for costs incurred by the City of Pueblo in investigating, negotiating and approving proposed transfers of its franchise, and WHEREAS, Section 6 -7 of the Charter of the City of Pueblo provides that no special counsel shall be retained by the City of Pueblo to represent the City of Pueblo except by the City Attorney and for such compensation as determined by the City Council, and WHEREAS, the City Attorney consents to and approves the engagement of Dietze and Davis, P.C. to provide legal services relating to the negotiations with Black Hills /Aquila assets and franchise transfer. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The engagement letter between Dietze and Davis, P.C. and the City of Pueblo, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute the engagement letter in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2 Funds for services to be performed and costs expended in such representation shall be disbursed from the Professional Services Account in the City Council's 2007 budget. INTRODUCED April 23, 2007 BY Ray Aquilera Councilperson APPROVED: RRESIDIENTof City Council ATTESTED BY: CITY CLERK 1ZIrl,s 1 1 13 D �I Background Paper for Proposed RESOLUTION AGENDA ITEM # 1 1 DATE: April 23, 2007 DEPARTMENT: Law Department TITLE A RESOLUTION ENGAGING DIETZE AND DAVIS, P.C. TO PROVIDE LEGAL SERVICES RELATING TO NEGOTIATIONS FOR BLACK HILLS /AQUILA ASSET AND FRANCHISE TRANSFER ISSUE Should City engage Dietze and Davis to provide legal services relating to negotiations for Black Hills /Aquila asset and franchise transfer? Approve the engagement. BACKGROUND Aquila, Inc. has entered into agreements to transfer its Colorado electric utility assets and franchise to Black Hills Corporation and has filed an application for approval of such asset transfer with the Public Utilities Commission of the State of Colorado ( "PUC "). It would be in the best interest of the City and City customers of Aquila, Inc. to engage the services of legal counsel experienced in legal matters before the PUC and utility transfers to assist the City in investigating, negotiating and approving the proposed asset and franchises transfer. Pursuant to Ordinance No. 5640, Aquila, Inc. is required to reimburse the City of Pueblo for costs incurred by the City of Pueblo in such investigation, negotiation and approval. FINANCIAL IMPACT Funds for services to be performed and costs expended in such representation shall be disbursed form the Professional Services Account in the City Council's 2007 budget.