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Enron Mail |
FYI. Here is the background information on the deal.
Jim ---------------------- Forwarded by James D Steffes/NA/Enron on 05/11/2001 07:46 AM --------------------------- Eric Letke@EES 05/10/2001 01:35 PM To: David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Dan Leff/HOU/EES@EES, Sean A Holmes/HOU/EES@EES, James D Steffes/NA/Enron@Enron cc: Kay Chapman/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES Subject: Urgent - City of Chicago This is on Dave's calendar at 1:00 in his office. ---------------------- Forwarded by Eric Letke/HOU/EES on 05/10/2001 01:34 PM --------------------------- Eric Letke 05/10/2001 01:23 PM To: David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Dan Leff/HOU/EES@EES, Sean A Holmes/HOU/EES@EES, James D Steffes/NA/Enron@Enron cc: Jeremy Blachman/HOU/EES@EES Subject: Urgent - City of Chicago FYI. Background on the City deal. I will organize a meeting for tomorrow afternoon to get a decision. ---------------------- Forwarded by Eric Letke/HOU/EES on 05/10/2001 01:19 PM --------------------------- Eric Letke 05/08/2001 07:24 PM To: Jeremy Blachman/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Elizabeth Tilney/HOU/EES@EES, James M Wood/HOU/EES@EES, Sean A Holmes/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, James E Keller/HOU/EES@EES cc: Edwin Essandoh/HOU/EES@EES, Michael Lindert/HOU/EES@EES, Roy Boston/HOU/EES@EES, Suzanne Rhodes/HOU/EES@EES, Edward Hamb/HOU/EES@EES, Roger Persson/HOU/EES@EES (bcc: Eric Letke/HOU/EES) Subject: Urgent - City of Chicago Remote email trouble. This is important. Please review and provide comments. ---------------------- Forwarded by Eric Letke/HOU/EES on 05/08/2001 07:18 PM --------------------------- Eric Letke 05/08/2001 07:14 PM To: Eric Letke/HOU/EES@EES cc: Subject: Urgent - City of Chicago It is decision time. The City has verbally agreed to ALL of our "5" major issues. Their General Counsel and Ed Essandoh are trading drafts of proposed language today and tomorrow. The deal is not without risk in the next 30 days. However, the City has responded to all of our demands, has gotten the proper people involved, and seems very interested in completing this transaction. Overall, from what I have seen in the last 3 weeks, it appears we have a good deal here. Following you will find: Notional Deal Valuation - You will only find the deals we anticipate would close at the July Council mtg, good chance others may come but they are not considered here. Positive Forces for Enron Risks for Enron (w/Plan to Mitigate) Estimated Costs to Finish the Deal (conservative estimate) Action Plan/Timeline Notional Deal Valuation Department Estimates Ann Spend TCV MTM Airports * $15 $120 $2.0 Water Dept $10 $80 $1.2 DGS $10 $80 $1.2 CTA - Non-Traction $15 $120 $2.0 Total $50 $400 $6.4 Note: We are currently working on the Airports. The City has commit the other facilities if we can do it by the June City Council meeting. We think the above deals are similar in nature and can be ready by June introduction. Positive Forces for Enron The Mayor has endorsed this to his people and is willing to do so publicly. Powerful political forces are removing obstacles to this deal. City Officials are ready to back this deal in front of City Council. Concessions from the City to this point have been unprecedented (according to outside counsel, consultants, and City employees/officials). Risks for Enron MBE/MWE perception of total contract value versus obligations to MBE/MWE requirements. The Compliance Department has agreed to evaluate the rule of law against our administrative costs since this is a commodity deal. Perception needs to be managed. Plan to mitigate: Hire MWE/MBE consultant to work with appropriate Enron people to develop a plan. THIS needs to be resolved before any public announcement. Public perception needs to managed. Plan to mitigate: It is our intent to work with Peggy's group to hire a local PR consultant. The Enron people will manage how we interact with this group. There is a chance that City Council could possibly not approve our contract and ordinance once the Mayor submits it. Plan to mitigate: We are designing a plan to deploy political consultants and lobbyists to influence the process. Enron will need a "face" in Chicago to work with City Council, deal issues, and potentially the media. Plan to mitigate: Eric does his current job from Chicago in June and part of July. Estimated Costs to Finish the Deal (conservative estimate) Outside Counsel (Contract, City Council work) $30,000 PR Consultant $20,000 MBE/MWE Consultant $20,000 Travel and Housing (Eric) $15,000 Internal Structuring & Legal $5,000 Total $90,000 Action Plan/Timeline Final written language for major issues 5/9 Ed Essandoh to finalize all language (in Chicago) 5/10 Meetings to set plan to mitigate Risks for Enron 5/11 Meeting with City to discuss action plan and roll-out to Council 5/14 Action Plan Further Defined 5/15 It is imperative that we make a decision on this deal now. We look bad enough killing it after all the city's concessions. However, we will look worse in the public eye if we back out later.
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