Title
AN ORDINANCE AUTHORIZING A SETTLEMENT AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND KANSAS CITY POWER & LIGHT FOR RESOLUTION OF DISPUTED ELECTRIC FRANCHISE TAX RECEIPTS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT BY AND ON BEHALF OF THE CITY.
Body
Issue/Request:
AN ORDINANCE AUTHORIZING A SETTLEMENT AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND KANSAS CITY POWER & LIGHT FOR RESOLUTION OF DISPUTED ELECTRIC FRANCHISE TAX RECEIPTS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT BY AND ON BEHALF OF THE CITY.
Key Issues:
The City sought proposals from qualified firms / providers for the purpose of conducting a utility franchise tax audit to determine if the appropriate amount of revenue is being collected. The audit included electric, natural gas, cable, telephone utilities, and an audit of the City’s leased and owned street light system.
The audit was to verify the financial statements from all franchisees that were submitted during the last five (5) calendar years (2008-2013) and include an audit of the City’s leased and owned street light system for the last five (5) calendar years. The audit tasks generally included a review and examination of the utility’s work orders, meter readings, customer billings, billing summaries, and general ledger to inspect the taxable receipts for each and to identify misreported or unreported sales. Misreported or unreported sales could include, but are not limited to, revenues from the following sources;
· General residential and commercial sales
· Late penalties and forfeited deposits
· Returned check charges
· Connects, disconnects, re-connect fees
· Account initiation fees, new or existing service
· Minimum billing charges
· Interest earned on security deposits
· Charges for meter tests, out of cycle meter readings
· Bad debt recoveries
· Charges for special billing
· Receipts from a city for furnishing street lighting
· Receipts from the bill payment assistance program f...
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