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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
SUBJECT: Northwestern Energy Sale
MEETING DATE: May 8, 2006
BACKGROUND: In order for MPPI to conduct due diligence, the Board signed a
confidentiality agreement. Though the public announcement was made regarding the sale of
Northwestern Energy to the Australian firm, we are still under obligation to abide by this
confidentiality agreement. Therefore, all statements must be sensitive to this fact. A MPPI
Board meeting is being scheduled within the next 30 days and our share of the cost of due
diligence will be invoiced to the City in the near future. To date, the City has spent $100,000 on
this joint venture and would expect the due diligence cost to not exceed $100,000.
RECOMMENDATION: Discussion
FISCAL EFFECTS: Total of approximately $200,000
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
____________________________
Chris A. Kukulski, City Manager
Report compiled on May 4, 2006