ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to Approve an Extension of the FRANCHISE AGREEMENT and to settle litigation with AMEREN ILLINOIS COMPANY d/b/a AMEREN ILLINOIS.
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BACKGROUND: Corporation Counsel has negotiated a proposed extension of AMEREN'S FRANCHISE AGREEMENT with the City, by virtue of the ORDINANCE; which is attached hereto as Exhibit A and extends the FRANCHISE AGREEMENT, granting for a period of 11 years to AMEREN ILLINOIS, A CORPORATION, AND ITS SUCCESSORS, and assigns the FRANCHISE right, permission, and authority to construct, reconstruct, excavate, place, remove, extend, maintain, and operate an ELECTRIC UTILITY SYSTEM in the City of Peoria, County of Peoria, and State of Illinois. Exhibit B is a RELEASE AND SETTLEMENT AGREEMENT made in conjunction with the FRANCHISE AGREEMENT which settles pending litigation between the parties.
FINANCIAL IMPACT: The new Franchise Agreement calls for a 194 Thousand Dollar up-front payment, and an approximate 10.1 Million Dollars to be paid to the City by Ameren over the life of the Agreement. If the City enters into this Franchise Agreement Extension, it will realize an additional increase of approximately 1.7 Million Dollars over the previous offer made by Ameren.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: Ameren will continue to provide electric services for the City of Peoria and its citizens, and the currently pending litigation will be resolved.
IMPACT IF DENIED: The Franchise Agreement will not be extend and pending litigation will not be resolved.
ALTERNATIVES: No extension will be granted and the litigation will not be resolved.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
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