Loading...
HomeMy WebLinkAbout08974 City Clerk’s Office Item # R-8 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: February 8, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE SUBMITTING TO THE ELECTORS ENTITLED TO VOTE THEREON AT THE SPECIAL MUNICIPAL FRANCHISE ELECTION TO BE HELD ON MAY 3, 2016 THE QUESTION OF ADOPTING ORDINANCE NO. 8967 GRANTING A NON-EXCLUSIVE FRANCHISE TO PUBLIC SERVICE COMPANY OF COLORADO, ITS SUCCESSORS AND ASSIGNS, THE RIGHT TO PROVIDE NATURAL GAS UTILITY SERVICE 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 SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF NATURAL GAS 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 HEREIN DEFINED AS MAY BE NECESSARY, UPON THE TERMS, CONDITIONS AND REQUIREMENTS SET FORTH IN ORDINANCE NO. 8967 OF THE CITY OF PUEBLO SUMMARY: The Ordinance before Council refers to the voters of the City of Pueblo the question of again granting a natural gas utility franchise to Public Service Company of Colorado. The issue is to be decided at a May 3, 2016 Special Municipal Franchise Election called for that purpose. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The current natural gas utility franchise previously granted to Public Service Company of Colorado expires on August 3, 2016. The City Manager and City Attorney have been negotiating a new non-exclusive twenty year franchise agreement with the company. The City and Public Service Company have reached an agreement on the terms and conditions of the new franchise contract which will expire on August 3, 2036. The following important provisions are also contained in the franchise ordinance being referred to the voters:  The City reserves its right to operate a municipal natural gas utility.  The City reserves its right to purchase and condemn company facilities, land, rights-of- way and easements now owned or to be owned by the company located within the territorial boundaries of the City of Pueblo.  Consent of the City is required for any transfer of the franchise. FINANCIAL IMPLICATIONS: As a Franchise Fee, Public Service Company shall continue to pay annually to the City an amount equal to 3% of all gross revenues generated by the Company in the City of Pueblo. In addition to the Franchise Fee, the Company shall continue to pay the City a 3.5% sales and use tax pursuant to Sec. 14-4-61(4), P.M.C. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: The current Franchise Agreement with the Public Service Company of Colorado can be allowed to expire on August 3, 2016, without being renewed. RECOMMENDATION: Approval of the Ordinance. Attachments: Proposed Ordinance No. 8967 ORDINANCE NO. 8974 AN ORDINANCE SUBMITTING TO THE ELECTORS ENTITLED TO VOTE THEREON AT THE SPECIAL MUNICIPAL FRANCHISE ELECTION TO BE HELD ON MAY 3, 2016 THE QUESTION OF ADOPTING ORDINANCE NO. 8967 GRANTING A NON- EXCLUSIVE FRANCHISE TO PUBLIC SERVICE COMPANY OF COLORADO, ITS SUCCESSORS AND ASSIGNS, THE RIGHT TO PROVIDE NATURAL GAS UTILITY SERVICE 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 SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF NATURAL GAS 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 HEREIN DEFINED AS MAY BE NECESSARY, AND UPON THE TERMS, CONDITIONS AND REQUIREMENTS SET FORTH IN ORDINANCE NO. 8967 OF THE CITY OF PUEBLO WHEREAS, Public Service Company of Colorado has applied under Article 16 of the Charter for a natural gas utility franchise; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. At the special municipal franchise election to be held on May 3, 2016, there shall be submitted to the electors of the City of Pueblo entitled to vote thereon the question of adopting Ordinance No. 8967, a copy of which is attached hereto and incorporated herein by reference, granting a natural gas utility franchise to Public Service Company of Colorado. 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 PUBLIC SERVICE COMPANY OF COLORADO, ITS SUCCESSORS AND ASSIGNS, THE RIGHT TO PROVIDE NATURAL GAS UTILITY SERVICE 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 SALE, PURCHASE, EXCHANGE, TRANSMISSION AND DISTRIBUTION OF GAS 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 HEREIN DEFINED AS MAY BE NECESSARY, UPON THE TERMS, CONDITIONS AND REQUIREMENTS SET FORTH IN ORDINANCE NO. 8967 OF THE CITY OF PUEBLO? SECTION 2. The City Clerk of the City of Pueblo shall give public notice of the special municipal franchise election on Ordinance No. 8967 as required by law. The City Clerk shall cause the full text of Ordinance No. 8967 to be published once in the Pueblo Chieftain at least ten (10) days prior to the special municipal franchise election. SECTION 3. Public Service Company of Colorado shall, at least twenty (20) days prior to the special municipal franchise election, deposit with the Director of Finance all expenses of the special municipal franchise election as required by Section 16-2 of the Charter of the City. SECTION 4. The officers and staff 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 February 8, 2016 BY: Ed Brown PASSED AND APPROVED: February 22, 2016