Loading...
HomeMy WebLinkAbout13820 RESOLUTION NO. 13820 A RESOLUTION ESTABLISHING AN ELECTRIC UTILITY COMMISSION AND APPOINTING MEMBERS THERETO BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. There is hereby created an Electric Utility Commission (“Commission”) whose mission is to conduct and oversee legal, financial and operational feasibility studies for the purpose of determining if the City of Pueblo can successfully provide electric utility service beginning on August 11, 2020. SECTION 2. The Commission’s responsibilities include, at a minimum: Legal Issues: Determine the legal processes required for the City to exercise its right to provide electricity as a municipal electric utility. Distribution System: Determine the scope of the distribution system owned by Black Hills to be purchased or condemned by the City, and obtain engineering cost estimates of all equipment required for the City to provide electricity as a municipal electric utility. Financing: Determine the most favorable sources of financing available to the City to exercise its right to purchase or condemn the distribution system and to provide electricity as a municipal electric utility. Operations: Determine the available sources and estimated cost of power supplies or generation equipment required to meet the City’s power requirements. Determine the model for the physical operation of, and the personnel necessary to successfully and reliably operate, the City’s municipal electric utility. SECTION 3. The Commission shall have seven (7) members appointed by City Council as follows:  Two (2) members of the City Council  One (1) member representing Pueblo County  One (1) member representing the Pueblo West Metropolitan District  One (1) residential ratepayer of Black Hills Energy  One (1) commercial ratepayer of Black Hills Energy  One (1) industrial ratepayer of Black Hills Energy The City Manager shall serve as an ex-officio, non-voting member of the Commission. The City Attorney shall act as legal advisor to the Commission. SECTION 4. The following persons are hereby appointed to serve as members of the Commission:  Larry Atencio, member of City Council  Chris Nicoll, member of City Council  Christopher Markuson, representative of Pueblo County  Darrin Tangeman, representative of the Pueblo West Metropolitan District SECTION 5. The Acting City Clerk is hereby authorized and directed to advertise for applicants for the following positions on the Commission:  One (1) residential ratepayer of Black Hills Energy  One (1) commercial ratepayer of Black Hills Energy  One (1) industrial ratepayer of Black Hills Energy The deadline for receiving applications from for such positions shall be 5:00 p.m. on December 8, 2017. At its meeting scheduled for December 26, 2017, the City Council shall select as members of the Commission three (3) Black Hills Energy ratepayers as described above. SECTION 6. The Commission established hereby may be subsequently dissolved by the City Council in City Council’s sole discretion. SECTION 7. The officers and staff of the City are directed and authorized to take any and all required actions which are necessary to implement the policies and procedures described herein. SECTION 8. This Resolution shall become effective immediately upon final passage and approval. INTRODUCED November 13, 2017 BY: Chris Nicoll City Clerk’s Office Item # M-7 Background Paper for Proposed Resolution COUNCIL MEETING DATE: November 13, 2017 TO: President Stephen G. Nawrocki and Members of City Council VIA: Brenda Armijo, Acting City Clerk FROM: Sam Azad, City Manager SUBJECT: A RESOLUTION ESTABLISHING AN ELECTRIC UTILITY COMMISSION AND APPOINTING MEMBERS THERETO SUMMARY: Attached is a Resolution which creates an Electric Utility Commission whose mission is to advise City Council whether the City, operating as a Municipal Electric Utility, could successfully provide electric utility service beginning on August 11, 2020. The attached Resolution also appoints certain initial members to the Commission. PREVIOUS COUNCIL ACTION: On September 25, 2017, by Resolution No. 13790, the City Council, declared the City of Pueblo’s intent to terminate its Franchise Agreement with Black Hills Energy at the midpoint of the Franchise in 2020 and to create a Municipal Electric Utility if due diligence demonstrated that the City could feasibly create and operate such a utility. BACKGROUND: Legal, financial and operational feasibility studies must be conducted to determine if the City can successfully provide electric utility service beginning on August 11, 2020. The Electric Utility Commission would have responsibility for overseeing such studies and making a recommendation to City Council regarding the creation of a Municipal Electric Utility. FINANCIAL IMPLICATIONS: It will be necessary to hire and retain legal, financial and operational experts to conduct the necessary feasibility studies. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If this Resolution is not approved, the process of studying the possible “municipalization” of Black Hills’ Electric Utility will not begin. RECOMMENDATION: Approve the Resolution. Attachments: Proposed Resolution