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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