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HomeMy WebLinkAbout10535RESOLUTION NO. 10535 A RESOLUTION WITHDRAWING CITY COUNCIL'S SUPPORT FOR QUESTION A— CHARTER AMENDMENT AUTHORIZING THE CITY TO ACQUIRE AQUILA, INC.'S FACILITIES WHEREAS, Aquila, Inc. publicly informed the City that its facilities located in the state of Colorado ( "Aquila facilities ") were for sale and invited the City to participate in the bidding to purchase the Aquila facilities, and WHEREAS, as a preliminary requirement for the City to acquire the Aquila facilities, the City submitted to a vote of the registered electors of City at the general municipal election to be held November 8, 2005 Question A— Charter Amendment authorizing the City to acquire the Aquila facilities. and WHEREAS, Aquila, Inc. has determined that it will not sell the Aquila facilities and affirmed that it will continue to own, conduct and operate the Aquila facilities, and WHEREAS Aquila, Inc. has committed to expend tens of millions of dollars in equipment and upgrading the Aquila facilities, and WHEREAS, since Aquila, Inc. is no longer a willing seller of the Aquila facilities, the City would have to acquire the Aquila facilities through condemnation by the exercise of its power of eminent domain, and WHEREAS, condemnation proceedings would be costly, time consuming and contentious, and WHEREAS, Aquila, Inc. has agreed to reimburse the City all costs, including staff time, in the amount of $275,000.00 incurred by the City in evaluating the feasibility of acquiring the Aquila facilities and negotiating with Aquila, Inc., and WHEREAS, it is not now legally nor practically possible to remove Question A— Charter Amendment from the ballot for the November 8, 2005 general municipal election which has been printed and certified. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council of the City of Pueblo for the above stated reasons does hereby withdraw its support for Question A— Charter Amendment authorizing the purchase of Aquila, Inc.'s facilities. SECTION 2 This Resolution shall become effective upon final passage and approval. INTRODUCED October 11, 2005 BY Michael Occhiato Councilperson APPROVED: PRES1DENT 9F CITY CPWCIL ATTESTED BY: CITY CLERK �O. # 16S35 o ° Background Paper for Proposed RESOLUTION AGENDA ITEM # ) ( DATE: October 11, 2005 DEPARTMENT: Law Department TITLE A RESOLUTION WITHDRAWING CITY COUNCIL'S SUPPORT FOR QUESTION A— CHARTER AMENDMENT AUTHORIZING THE CITY TO ACQUIRE AQUILA, INC.'S FACILITIES ISSUE Should City Council withdraw its support for Question A— Charter Amendment authorizing the City to acquire Aquila, Inc.'s facilities? RECOMMENDATION None. BACKGROUND Aquila, Inc. ( "Aquila ") publically informed the City that its facilities located in the State of Colorado ( "Aquila facilities ") were for sale and invited the City to participate in the bidding to purchase the Aquila facilities. As a preliminary requirement for the City to acquire the Aquila facilities, the City Council submitted to a vote of the registered electors of the City at the general municipal election to be held November 8, 2005 Question A— Charter Amendment authorizing the City to acquire the Aquila facilities. Aquila changed its position and announced that the Aquila facilities are not for sale and affirmed that it will continue to own, conduct and operate the Aquila facilities. Aquila has committed to expend tens of millions of dollars in equipment and upgrading the Aquila facilities and agreed to reimburse City for all costs, including staff time, in the amount of $275,000 incurred by the City in evaluating the feasibility of acquiring the Aquila facilities and negotiations with Aquila. Since Aquila is no longer a willing seller, the City would have to acquire the Aquila facilities through condemnation proceedings which would be costly, time consuming and contentious. It is not now legally nor practically possible to remove Question A— Charter Amendment from the ballot for the November 8, 2005 general municipal election. For the foregoing reasons, the Resolution will withdraw City Council's support for Question A— Charter Amendment authorizing the City to acquire Aquila's facilities. FINANCIAL IMPACT None. -2-