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HomeMy WebLinkAbout08374ORDINANCE NO. 8374 AN ORDINANCE SUBMITTING TO THE ELECTORS ENTITLED TO VOTE THEREON AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 1, 2011 THE QUESTION OF ADOPTING ORDINANCE NO. 8360 GRANTING A NON- EXCLUSIVE FRANCHISE TO SAN ISABEL ELECTRIC ASSOCIATION WITHIN ITS CERTIFICATED AREA TO FURNISH AND SELL ELECTRICITY TO THE CITY AND TO ALL RESIDENTS WITHIN THE CITY, AND THE NON-EXCLUSIVE RIGHT TO ACQUIRE, PURCHASE, CONSTRUCT, INSTALL, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH SAID CITY ALL FACILITIES REASONABLY NECESSARY FOR THE GENERATION, PRODUCTION, SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF ELECTRIC UTILITY SERVICE WITHIN AND THROUGH THE CITY, TOGETHER WITH THE RIGHT TO MAKE REASONABLE USE OF THE STREETS AND PUBLIC UTILITY EASEMENTS OF THE CITY AS MAY BE NECESSARY, AND FIXING THE TERMS, CONDITIONS AND REQUIREMENTS APPLICABLE TO ALL OF THE FOREGOING WHEREAS, San Isabel Electric Association has applied under Article 16 of the Charter for an electric franchise; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. At the general municipal election to be held on November 1, 2011, to be held as a Coordinated Election pursuant to law, there shall be submitted to the electors of the City of Pueblo entitled to vote thereon the question of adopting Ordinance No. 8360, a copy of which is attached hereto and incorporated herein by reference, granting an electric franchise to San Isabel Electric Association. The ballot title (submission clause and title) therefor shall be as follows: Question No. _____ (FRANCHISE QUESTION SUBMITTED): SHALL THE CITY OF PUEBLO GRANT A NON-EXCLUSIVE FRANCHISE TO SAN ISABEL ELECTRIC ASSOCIATION, WITHIN ITS CERTIFICATED AREA TO FURNISH AND SELL ELECTRICITY TO THE CITY AND TO ALL RESIDENTS WITHIN THE CITY, AND THE NON- EXCLUSIVE RIGHT TO ACQUIRE, PURCHASE, CONSTRUCT, INSTALL, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH SAID CITY ALL FACILITIES REASONABLY NECESSARY FOR THE GENERATION, PRODUCTION, SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF ELECTRIC UTILITY SERVICE WITHIN AND THROUGH THE CITY, TOGETHER WITH THE RIGHT TO MAKE REASONABLE USE OF THE STREETS AND PUBLIC UTILITY EASEMENTS OF THE CITY AS MAY BE NECESSARY, UPON THE TERMS, CONDITIONS AND REQUIREMENTS SET FORTH IN ORDINANCE NO. 8360 OF THE CITY OF PUEBLO? SECTION 2. The City Clerk of the City of Pueblo shall give public notice of the general municipal election and election on Ordinance No. 8360 as required by law. The City Clerk shall cause the full text of Ordinance No. 8360 to be published once in the Pueblo Chieftain at least ten (10) days prior to the general municipal election. SECTION 3. San Isabel Electric Association shall, at least twenty (20) days prior to the general municipal election, deposit with the Director of Finance all expenses of the general municipal election as required by Section 16-2 of the Charter of the City. SECTION 4. The officers of the City and Board of Elections are hereby authorized and directed to take all action necessary and appropriate to effectuate the provisions of this Ordinance. SECTION 5. If any provision of this Ordinance is held to be invalid or unenforceable, such holding shall not affect any of the remaining provisions of this Ordinance. SECTION 6. This Ordinance shall take effect immediately upon final passage. INTRODUCED July 11, 2011 BY: Chris Kaufman COUNCILPERSON PASSED AND APPROVED: July 25, 2011 Background Paper for Proposed ORDINANCE DATE: AGENDA ITEM # R-1 July 11, 2011 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE AN ORDINANCE SUBMITTING TO THE ELECTORS ENTITLED TO VOTE THEREON AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 1, 2011 THE QUESTION OF ADOPTING ORDINANCE NO. 8360 GRANTING A NON- EXCLUSIVE FRANCHISE TO SAN ISABEL ELECTRIC ASSOCIATION WITHIN ITS CERTIFICATED AREA TO FURNISH AND SELL ELECTRICITY TO THE CITY AND TO ALL RESIDENTS WITHIN THE CITY, AND THE NON-EXCLUSIVE RIGHT TO ACQUIRE, PURCHASE, CONSTRUCT, INSTALL, MAINTAIN, OPERATE AND EXTEND INTO, WITHIN AND THROUGH SAID CITY ALL FACILITIES REASONABLY NECESSARY FOR THE GENERATION, PRODUCTION, SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF ELECTRIC UTILITY SERVICE WITHIN AND THROUGH THE CITY, TOGETHER WITH THE RIGHT TO MAKE REASONABLE USE OF THE STREETS AND PUBLIC UTILITY EASEMENTS OF THE CITY AS MAY BE NECESSARY, AND FIXING THE TERMS, CONDITIONS AND REQUIREMENTS APPLICABLE TO ALL OF THE FOREGOING ISSUE Should the question of granting an electric franchise to San Isabel Electric Association ("San Isabel" or "Company"), on the terms set forth in Ordinance No. 8360, be submitted to the voters? RECOMMENDATION Approve the Ordinance. BACKGROUND The Ordinance before Council refers the question of granting an electric franchise to San Isabel for a period of 19 years. This term will end during the same year as the franchise granted to Black Hills/Colorado Electric Utility Company L.P. ("Black Hills"). Under the terms of the franchise, the Company is allowed to provide electric service within its Colorado PUC certificated area within the City. This area is generally at the far south area of the City and currently includes only a few customers. San Isabel is also authorized to place and maintain its poles and other facilities within public rights of way within the City, subject to limitations and protections set forth in the Franchise Ordinance which are necessary for the benefit of the City and its residents. In return for being granted the privilege of special use of the streets and rights of way, the Company must pay a franchise fee equal to 3% of its gross receipts from service within the City. This franchise is virtually the same as Black Hills' franchise with minor differences based upon San Isabel's status as an elective cooperative rather than investor owned utility. The following important provisions are also contained in the Franchise Ordinance being referred to the voters:  The City is permitted to use Company facilities for its telecommunication cables.  An undergrounding fund is established to advance the removal of poles and underground the Company's facilities.  The City reserves its rights to purchase and condemn Company facilities, and has a first right of refusal with respect to the sale of any land, water or other facilities of the Company.  The City reserves its right to operate a municipal electric utility.  Consent of the City is required for any transfer of the Franchise. FINANCIAL IMPACT For the use of the streets and rights of way by San Isabel, City will receive a Franchise Fee equal to 3% of the Company's gross receipts, to be paid monthly during the term of the Franchise. The City also imposes sales tax on electric service pursuant to §11-4- 61(4), P.M.C., which is collected and remitted to the City. Because of the limited number of current customers, the revenue from franchise fees and sales taxes will be minimal.