HomeMy WebLinkAboutRes2004-080
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PAY THE LAW
FIRM OF KEMPPEL, HUFFMAN & ELLIS $27,218.29 FOR LEGAL
SERVICES RENDERED AND APPROPRIATING FUNDS
WHEREAS, Dean Thompson of the Law Firm Kemppel, Huffman & Ellis has
represented the City of Seward in hearings before the Regulatory Commission of Alaska
(RCA) for Rate Increases requested by our wholesale electric power supplier, Chugach
Electric, Inc.; and
WHEREAS, the results ofthese RCA hearings are that the City of Seward received a
$104,760.83 rebate from CEA and a reduction in our power cost of approximately
$ll,OOO/mo totaling approximately $204,008.33 to date; and
WHEREAS, the benefits of this rate decrease will continue for many years; and
WHEREAS, Dean Thompson is billing the City of Seward $26,626.27 for the work
involved to obtain these rate decreases and rebates; and
WHEREAS, Dean Thompson has also billed the City $692.02 for non-related legal
fees involving Marlow and Hobbs and their desire to sell power to the City of Seward,
making the total owed to Kemppel, Huffman and Ellis $27,218.29.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is authorized to Pay Kemppe1, Huffman & Ellis the amount
of$27,218.29 for legal services rendered to the City of Seward Electric Department.
Section 2. Funding is available from Account 501-5400-5170 by utilizing remaining
budget and appropriating an additional $20,000 from Electric Fund retained earnings
account 501-0000-3050, to Legal Expenditures, Electric Department, CEA Ty Rate Case,
Account 501-5400-5170-5009.
Section 3.
This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 26th day
of July, 2004.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-80
THE CITY OF SEWARD, ALASKA
~~~~
Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Branson, Va1datta, Amberg, Clark, Anderson Shafer
None
None
None
ATTEST:
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Je LewIs, .'-
City Clerk -'
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COUNCIL AGENDA STATEMENT
Meeting Date: July 26, 2004
Through: Phil Shealy, City Manager
From: Dave Calvert, Manager, Electric Utility
Agenda Item: Attorney Fee’s - Dean Thompson
BACKGROUND & JUSTIFICATION:
Dean Thompson of Kemppel, Huffman & Ellis, has been working on behalf of the City of Seward in
the Chugach Rate Case before the Regulatory Commision of Alaska, for approximately the last year.
During that time the City of Seward obtained a substantial rate reduction approximating
$132,330/year ($11,027.50/mo.) and a refund for past overcharges from Chugach totaling
$104,760.83, for a total benefit to the City of Seward of $204,008.33 (9 months @ $11,027.50/mo.
plus the $104,760.83 rebate).
Numerous hearings before the RCA and literally dozens of briefs have been filed by Dean Thompson
on behalf of the City to obtain these rebates and rate reductions. Although his bill for this work
totals $26,626.27, he has earned us well in excess of this amount and the reduced rate benefits will
continue for many years in the future.
In addition, Dean represented the City in negotiations with Marlow/Hobbs (who want to force us to
purchase power from a yet-to-be-built power project). The potential for a lawsuit is high unless we
have someone of Dean’ expertise to walk the tight line between negotiation and refusal. Dean has
done an excellent job of this and his latest bill for $589.00 plus $3.02 is included in this Resolution.
The total amount owed to Kemppel, Huffman & Ellis is $27,218.29.
CONSISTENCY CHECKLIST:
Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
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FISCAL NOTE:
Financing is available from Account 501-5400-5170
Approved by Finance Department
RECOMMENDATION:
City Council approve Resolution 04-80, authorizing the City Manager to pay Kemppel, Huffman &
Ellis $27,218.29 for legal services. Funding is available from account 501-5400-5170.
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