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i ►. <br /> FINANCIAL MANAGEMENT DEPARTMENT <br /> #2011- 04 <br /> DATE: March 2, 2011 <br /> TO: Honorable Mayor Michael T McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager <br /> Ron E. Neufeld, Finance Director <br /> SUBJECT: Franchise Agreement with Ameren for Natural Gas and Electricity <br /> SUMMARY RECOMMENDATION: <br /> It is recommended that the City Council approve the attached ordinances, which <br /> authorizes the Mayor to sign agreements renewing existing franchises for Ameren Illinois <br /> Company d/b/a/ Ameren Illinois, to operate an electric utility system and a gas utility <br /> system in the City of Decatur for 20 years. <br /> BACKGROUND: <br /> It is the intent of the parties by these agreements to extend for an additional 20 years, the <br /> authorization to Ameren Illinois, to construct, operate and maintain an electric utility <br /> system and a gas utility system within the City of Decatur as originally authorized by <br /> Ordinance No. 3589 and Ordinance No. 3590, approved on August 8, 1960. During the <br /> term of the existing agreements, Ameren Illinois has been discounting our street lights by <br /> 50% and donating up to 200,000 therms of natural gas per calendar year. Rather than <br /> discounting the street lights or donating natural gas, the proposed agreements specify an <br /> actual dollar amount of compensation per year for the term of the agreements. The <br /> amount of compensation will be spelled out under the budget/time implications section of <br /> this memo below. <br /> POTENTIAL OBJECTION: There are no known objections to these <br /> ordinances. <br /> INPUT FROM OTHER SOURCES: None <br /> STAFF REFERENCES: Rick Marley, PW Director <br /> Wendy Morthland, Corporation Counsel <br /> Ron Neufeld. Finance Director <br /> Rick Marley, Wendy Morthland and Ron Neufeld will all be in attendance at the City <br /> Council meeting to answer any questions of the City Council on this item. <br />