Memorandum

City of Lawrence

City Attorney’s Office

TO:	Toni Wheeler, City Attorney
FROM:	Randall F. Larkin, Senior Assistant City Attorney
DATE:	June 5, 2018
RE:	Kaw Valley Electric/FreeState Transfer and Assignment

Background

Kaw Valley Electric Cooperative (“Kaw Valley”), currently operates in the City under an Electric Franchise Contract enacted September 28, 1999 (Ordinance 7147).  Effective January 1, 2017, Kaw Valley and Leavenworth-Jefferson Electric Cooperative, Inc. ceased to exist and all their rights and obligations transferred to a new legal entity – FreeState Electric Cooperative, Inc. (“FreeState”).

Pursuant to the City’s franchise with Kaw Valley, the City must give consent to the transfer and assignment of the franchise contract. The City Attorney’s Office has negotiated with FreeState a Transfer, Acceptance and Assumption of Responsibility under Electric Franchise agreement. FreeState will assume the obligations under the existing franchise with Kaw Valley and will also agree to enter into a new Telecommunications Franchise Agreement with the City.

Staff Recommendation

Conditioned upon the execution of those Agreements, and FreeState’s concomitant agreement to enter into a new Electric Franchise Contract with the City, the City Attorney’s Office recommends that the City Commission, through the adoption of Resolution No. 7253, to grant the City’s consent to the transfer and assignment.

Action

Adopt Resolution No. 7253, approving the transfer from Kaw Valley to FreeState of the City’s Franchise Contract pursuant to Ordinance 7147 and amendments thereto, subject to the conditions set forth in the resolution, if appropriate.