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Home My WebLink AboutReso. 1986 - 050 - Approving the letter agreement between the city of redidng and kadison pfaelzer woodard quinn & rossi for legal services • • RESOLUTION NO. 86-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LETTER AGREEMENT BETWEEN THE CITY OF REDDING AND KADISON, PFAELZER, WOODARD, QUINN & ROSSI IFOR LEGAL SERVICES IN CONNECTION WITH THE PG&E PROPOSED RATE INCREASE, AND AUTHORIZING THE CITY MANAGER TO SIGN SAME. BE IT RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves the attached Letter Agreement dated February 20 , 1986 , between the City of Redding and the firm of Kadison, Pfaelzer, Woodard, Quinn & Rossi for legal services in an amount not to exceed $20 ,000 . 00 in connection with the Federal Energy Regulatory Commission' s Ratemaking Procedure regarding the Pacific Gas and Electric Company' s proposed rate increase; and 2 . That the City Manager of the City of Redding is hereby authorized and directed to sign all necessary documents on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest the signature of the City Manager and to impress the official seal of the City of Redding on the aforesaid documents, when appropriate; and 3 . That a true copy of the Letter Agreement referred to herein is attached hereto and made a part hereof. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of III 111 the City of Redding on the 3rd day of March , 1986, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Demsher, Gard, Pugh, & Kirkpatrick NOES : COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Fulton ABSTAIN: COUNCIL MEMBERS: None At,0-60 ' ` .1 HOWARD D. KIRKPATRICK, Mayor City of Redding ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: ,tet, a.,,#2fr .. ---- RAN ALL A. HAYS , Cirty -2- • • • KADISON. PFAELZER. WOODARD. QUINN 3 ROSSI A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS STUART L.KAOISON MICHAEL C.MALLET LAWYERS MORRIS PFAELZER ALAN R.WOODARD• PHPLIM N.FEDER 1111,3-19601 JOHN J.OUWN ROGER B.COVEN' 2000 PENNSYLVANIA AVENUE. N.W. THOMAS J.MCOERMOTT,JR. KEVIN C.MONSON OF COUNSEL RU55EL I.KULLY WILLIAM M.HENSLEY SUITE 7500M NORMAN C.JORGENSCN• ANTHONY J.RO551 DAVID A.SPROWL HOWARD L SCHWEITZER JOSEPH A.HURRAY JR. PEGGY KOBACKCR SHIFFRIN• WASHINGTON. D.C. 20006 JACK R.SMITH• , RICHARD S.COHEN DAVID S.EISEN ANTHONY M.V1TT1 RICHARD C.SMITH JAMES I.HAM RICHARD K SIHON• C.RANDOLPH FISHBURN TELEPHONE (202) 452-3300 PAUL R.WALKER• KENT A.HALKETT LOS ANGELES OKFICE PHILIP J.MAUSE'• JOEL E.BONNER TELECOPIER: (202) 466-4105 RICHARD T.WILLIAMS BRUCE W.FRASER JAMES GOLDMAN DEBORAH H.EISEN 707WILSHIRE BOULEVARD MARGARET M.MORROW MICHELE PLESCIA-SCHULTZ TELEX: 904332 _ - PORTICTM FLOOR TERENCE S.NUNAN NANCY 8.SAMUEL$ JOHN G.JOHNSON.JR.* MARVIN T.GRIFF••• • LOS ANGELES. CALIFORNIA 90017 CARL W.NORTHROP• PATRICIA A.HOLBROOK JAMES C.ROBERTS RAYMOND M.BUKATT (213)688-9000•17141 750-6082 LEE L.N.HENTAN JANINELISA S. K.JEFFERY February 20, 1986 CRAIG N. CKMAN HCL LISA S.K NTORK. JEFF T[LECOPIER:12131 668.9768 LAURENCE J.HUTT BARRY 5.KAUFMAN TELEX: 67-3330 JOHN B.MILES MICHAEL E.SCHEINBERG NORMAN A,PEOERSEN•• STEVEN D.FARKAS• HOWARD 0.BOLTZ.JR. WILLIAM B.BRINCKLOE.JR. J.DAVID OSwALT MEREDITH A.LOBEL NEWPORT BEACH OFFICE GREGORY C.PANT KATHLEEN D.SIMMONS ~� !••?T�P"•'lF"'�"•'C JOHN C.FUNK SANDRA J.BERGMANN f r� PAUL B.GEORGE RACHELLE B.CHONG•• -76--;--,_>7. I ;� 111,( �� 1301 DOVE STREET LAWRENCE A.CO* THOMAS H.KEELING SUITE 500 POLLY HORN CHRISTIAN E.MARKEY 111 NEWPORT BEACH,CALIFORNIA 92660 JEFFREY K.RIPPER WALTER W.MOORE THOMAS K.BROWN RHONDA L.NELSON _ (7141 851.0633•1213)6E8-9656 ERIC L.DOBBERTEEN ANDREW B.STEINBERG TELEGOPICR: 17141 65 93•N9 JOHN 1. C. KATHLEEN M.WHITE I 198 JOHN L.CARLTON PATRICK M.COSTELLO FEBr`'L•Jj f/J 11 TELEX: 183577 (A PROFESSIONAL CORPORATION .MEMBER OF CALIFO T OIA COLUMBIA BAR CITY OP REDOING...MEMBER OF CALIFORNIA AND D.C.BAR • "'1 TG ...MEMBER OF LOUISIANA BAR OTHERS ADMITTED IN CALIFORNIA ELE CTRIC DEITY`. �� DEPT . PILE NUMBER: Rick Coleman City of Redding 760 Parkview Avenue Redding, California 96001 Re: Contract for Legal Services Pacific Gas & Electric Co. , Docket No. ER86-107-002 Dear Rick: As you are aware, we are currently representing -the City of Redding in PG&E' s rate case at the FERC under the $20, 000 resolu- tion approved by the Redding City Council on December 16, 1985 (City Job No. 9316-15) . As we anticipated, under this initial o authorization we have performed. a preliminary analysis ° f PG&E' s rate filing, obtained technical assistance by adding Ma��rice Bru- baker and his associates at Drazen-Brubaker to our tear4 engaged . in initial discovery, attended the first prehearing conference in - this proceeding, and began the process of accumulating. information in preparation for litigation. By letter to you dated February 7, 1986, we requested authori- . zation to proceed in representing Redding for the balance of this case, and we gave you an estimate of legal costs that was based on the assumption that there would be full litigation of this case. In light of the meeting held with PG&E in the City of Redding on February 14, 1986, and .the telephone conference of February 18, 1986, it now appears that a settlement in principle has been reached between PG&E and the City of Redding. Unless serious, unforeseen problems occur, it will not be necessary for us to pro- ceed with full litigation. Accordingly, we are sending you this letter to revise our February 7, 1986 estimate of what will be required to bring this case to a conclusion. 411 110 , - • Rick Coleman February 20, 1986 Page 2 As we have discussed, some further activities will be neces- • sary in order to complete the settlement process. Although the broad principles of settlement have been established, we anticipate negotiating with PG&E in order to transform those principles into a written document. Once we have agreed on a written settlement document, that document will be incorporated into an Offer of Set- tlement filed by PG&E with the Commission. We will then review the Offer of Settlement and prepare comments recommendiing its approval by the Commission. Although we do not expect any opposi- tion, we would also prepare and file reply comments if any party opposes the settlement between PG&E and the City of Redding. Finally, we will review the tariff filing that PG&E ultimately submits once its Offer of Settlement is approved by they Commission in order to ensure that those tariff sheets properly reflect the settlement reached between PG&E and the City of Redding. At this point in time, it is impossible to estimate with pre- ' cision the amount of time and effort that will be necessary to take this case to conclusion. Nevertheless, given our experience in . comparable cases, we believe that legal costs of $20 - 25,000 can reasonably be anticipated: Accordingly, we propose that the Red- ding City Council authorize $25, 000 for legal services ito conclude this proceeding. If few problems are encountered in the settlement process, we should be able to complete this matter for less -- hopefully, substantiallyless -- than this full a uthori..7ation . In the unlikely event that the settlement process fails and litigation becomes necessary, however, it may become necessary for us to request an additional authorization. As we hope you have found in the past, we are sensitive to the needs of our clients and we endeavor to provide the highest quality of legal service at a realistic cost. As always, we will keep you advised on a regular basis about the progress of these proceedings and will consult continuously with you about the tasks we are undertaking. Our monthly statements will continue to pro- vide you with a complete description of all activities undertaken and will contain an itemization of all costs. If you have any questions, or if any of the points raised in this letter require amplification, please let us know. Very truly yours, it---------..,_ a ff.--.1-----..1 Norman A. Pedersen Roger B. Coven ATTEST: ETHEL A. NICHOLS , Clerk CITY OF REDDING By: FO APPROVED: ' ROBERT E. COURTNEY �~ f City Manager r 'NDALL A. HAYS, Cit Attorney