Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Jonathan Douglass, Assistant to the City Manager
CC:	Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager
DATE:	November 26, 2007
RE:	Aquila Franchise Transfer Request

Aquila, Inc. holds a franchise to sell natural gas to the City of Lawrence and its residents through November of 2009 which automatically renews for an additional five year period unless notice is given by the City. On February 6, 2007, Aquila entered into an Asset Purchase Agreement under which Aquila will transfer its gas utility operations in Kansas to Black Hills / Kansas Gas Utility Company, LLC, which transaction is anticipated to close during the first quarter of 2008.

Aquila is requesting the City’s consent to the assignment of the franchise to Black Hills, and to Black Hills’ assumption of Aquila’s obligations under the franchise. City staff sees no reason to object to the request.

ACTION:       Approve a request from Aquila, Inc. to transfer its franchise to Black Hills / Kansas Gas Company, LLC, and authorize the Mayor to sign the Franchise Transfer Consent letter.  

Attachments:  Franchise Transfer Consent Request

Franchise Transfer Consent Letter