Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 17-500Ord.No:          18727

Agenda Title:

17-500 - 1R. An ordinance extending an existing Project Management Agreement with Dogwood Power Management, LLC for managing the operations and maintenance of the Dogwood Energy Facility; and declaring an emergency.
Recommendations:

Staff recommends approval of the proposed ordinance.
Background:

The City owns 12.3% of the Dogwood Generating Facility. As part of the ownership Agreements, Dogwood Power Management, LLC has operated the facility in exemplary fashion for the past five (5) years. The existing Agreement expires on March 29, 2017. The requested extension will allow for continuation of the existing management arrangement through March 31, 2019 with annual renewals through March 27, 2032 (fifteen years)—unless terminated earlier by the co-owners or Dogwood Power Management, LLC.

This Ordinance must be signed by March 24, 2017 to maintain effective Management of the facility.

All co-owners unanimously agree with extending the Management Agreement.

Summary

Staff recommends approval of the proposed ordinance.

For information, the Law Department, as well as the City’s Bond Counsel have reviewed the extension and agree it is acceptable.
Emergency Justification:

This ordinance is deemed to be of an urgent nature and that its immediate passage is necessary for the preservation of the public peace, property, health, safety and welfare of the residents of the City of Independence and should become effective immediately upon the date of its passage for the reason that the final language for the extension was delayed until Friday, March 10, 2017 and the term of the existing Project Management Agreement ends on Monday, March 27, 2017.


Fiscal Impact:

The only fiscal impact of this extension is to update the hourly rates paid to members of Dogwood Power Management, LLC. Some hourly rates decrease with the updated schedule of rates. The net fiscal impact is expected to be neutral. Any changes in cost shall be from the Power & Light Operating Budget.



Department:          Power & LightContact Person:          E. Leon Daggett


REVIEWERS:
DepartmentAction
Power and Light DepartmentApproved
Finance DepartmentApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
First AmendmentBackup Material
MemoBackup Material
Original OrdinanceBackup Material
OrdinanceOrdinance