Iowa Utilities Bd Legal Exp. ShMEMORANDUM
July 24, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Agreement for Cost Sharing of Legal Expenses
On May 20, 2002, the City Council approved retaining legal counsel to represent the
City in proceedings before the Iowa Utilities Board as a result of a request for rate
increase and equalization of rates by Interstate Power and Light Company. The City
has corresponded with other communities impacted by equalization to determine
interest in sharing the cost of legal expenses. The Cities of Grinnell, Newton,
Mason City and Washington have agreed to joint representation and sharing of legal
costs. Corporation Counsel Barry Lindahl has drafted an Agreement for Cost Sharing in
Legal Expenses.
Economic Development Director Bill Baum recommends that the City Council authorize
the City to enter into an agreement for sharing legal expenses in proceedings before the
Iowa Utilities Board.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William J. Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 22, 2002
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
Agreement for cost sharing of legal expenses
INTRODUCTION
The attached resolution provides for the approval of an agreement between the City of
Dubuque and the Cities of Grinnell, Newton, Mason City, and Washington to share the
costs of legal representation in proceedings of the Iowa Utilities Board as a result of a
request for rate increase and equalization of rates by Interstate Power and Light
Company.
DISCUSSION
The City Council on May 20 approved the City retaining legal counsel to represent the
City in proceedings of the Iowa Utilities Board as a result of a request for rate increase
and equalization of rates by Interstate Power and Light Company. The City has
corresponded with other communities impacted by equalization to determine interest in
cost sharing the legal expenses. The Cities of Grinnell, Newton, Mason City, and
Washington have agreed to joint representation and sharing of the costs. The attached
agreement has been drafted and approved by Corporation Counsel, Barry Lindahl.
RECOMMENDATION
I recommend the City Council approve the attached resolution authorizing the City to
enter into an agreement for sharing legal expenses.
F:\USERS\WBaum~vlemos to Mike - General~Memo on shadng costs - agreement.doc
RESOLUTION NO. 383-02
RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR
COST SHARING IN LEGAL EXPENSES
WHEREAS, the City of Dubuque, Iowa, on May 20, 2002 authorized the City
Manager to retain legal counsel to represent the City of Dubuque in the Interstate Power
and Light Company request for rate increase and equalization of rates, and
WHEREAS, the City Manager has communicated with other communities
regarding the City Council action, requesting consideration of sharing in the cost of legal
expenses; and
WHEREAS, the Cities of Grinnell, Newton, Mason City, and Washington, Iowa
have agreed to join with the City of Dubuque, and have agreed to cost sharing legal
expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The attached Agreement for Cost Sharing in Legal Expenses
between and among the Cities of Dubuque, Grinnell, Newton, Mason City, and
Washington is hereby approved.
Section 2. The Mayor and City Clerk are hereby authorized and directed to
execute the Agreement.
Passed, approved and adopted this 5th day of August 2002.
ATTEST: Jeanne F. Schneider
City Clerk
Terrance M. Duggan, Mayor
F:\USERS\WBaum\Gen ED\Resolution approving legal cost sharing:doc
AGREEMENT FOR COST SHARING IN LEGAL EXPENSES
BY AND AMONG
THE CITY OF DUBUQUE, IOWA
THE CITY OF GRINNELL, IOWA
THE CITY OF NEWTON, IOWA
THE CITY OF MASON CITY, IOWA
AND THE CITY OF WASHINGTON, IOWA
THIS AGREEMENT is made and entered into by and among the City of
Dubuque, Iowa, the City of Grinnell, Iowa, the City of Newton, Iowa, the City of
Washington, Iowa, and the City of Mason City, Iowa.
WITHNESSETH:
WHEREAS, Interstate Power and Light Company (Alliant) has filed a
petition with the Iowa Utilities Board asking for a uniform rate increase in electric
rates for its customers of 9.6%; and
WHEREAS, the Iowa Utilities Board has directed Alliant to file a class
cost-of-service, rate design, and rate consolidation; and
WHEREAS, the combination of rate increase and rate equalization will
have a significant impact on all classes of electricity users in the cities of
Dubuque, Grinnell, Newton, Mason City, and Washington, Iowa; and
WHEREAS, the City of Dubuque has engaged the Ahlers Law Firm of
Des Moines to represent it as an intervenor in the Iowa Utilities Board
proceedings, and has asked other cities similarly affected to join it in the
proceedings, and to share in the costs of the proceedings, which costs are
estimated to be approximately $40,000.
NOW THEREFORE, the parties to this Agreement, do hereby agree as
follows:
The parties agree to share in the cost of the legal expenses incurred by
the City of Dubuque for services of the Ahlers firm, on a per capita basis,
based upon the 2000 Census. The population and percentage share of
each city shall be as follows:
City Population % of total
Dubuque 57,686 48.64
Grinnell 9,105 7.68
Newton 15,579 13.14
Mason City 29,172 24.60
Washington 7,047 5.94
Total 118,589 100%
Page 1 of 6
2. The City of Dubuque, promptly upon receipt of invoices from the Ahlers
Law Firm, shall distribute copies of the invoices and a request for
reimbursement to the other parties based upon each city's share of the
total.
3. This Agreement is for the cost sharing only and nothing herein is
intended to create an attorney-client relationship between the Ahlers Law
Firm and the Cities of Grinnell, Newton, Mason City, or Washington.
4. This Agreement shall take effect upon execution by all of the parties.
CITY OF DUBUQUE, IOWA
By:
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Page 2 of 6
CITY OF GRINNELL, IOWA
By:
Gordon Canfield, Mayor
Attest:
Pamela J. Rupe, City Clerk
Page 3 of 6
CITY OF NEWTON, IOWA
By:
Attest:
David Aldridge, Mayor
Candice J. Brown, City Clerk
Page 4 of 6
CITY OF MASON CITY, IOWA
By:
William Schickel, Mayor
Attest:
City Clerk
Page 5 of 6
CITY OF WASHINGTON, IOWA
By:
Attest:
Edward A. Brown, Mayor
Jeff Rosien, City Clerk
Page 6 of 6