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HomeMy WebLinkAbout07362ORDINANCE NO. 7362 AN ORDINANCE SUBMITTING TO A VOTE OF THE REGISTERED ELECTORS OF THE CITY OF PUEBLO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 8, 2005, A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF PUEBLO TO ADD A SECTION AUTHORIZING THE CREATION AND OPERATION OF AN ELECTRIC UTILITY ENTERPRISE, THE ACQUISITION BY THE ENTERPRISE OF CERTAIN ASSETS OWNED BY AQUILA, INC., AND THE ISSUANCE OF REVENUE BONDS BY THE ENTERPRISE TO FINANCE THAT ACQUISITION WHEREAS, Aquila, Inc., a public utility, currently provides electricity to customers in the City of Pueblo, Colorado (the "City ") and in other areas of Colorado; and WHEREAS, Aquila has publicly announced its desire to sell its generating, transmission and other assets in Colorado necessary to provide electricity to those customers; and WHEREAS, Aquila and the City are parties to a Franchise Agreement, the provisions of which are contained in City Ordinance No. 5222, approved by the electorate of the City at a special municipal election held on August 13, 1985 (the "Franchise Agreement'); and WHEREAS, the City has determined that it would be to the benefit of the residents of the City, and therefore the City desires, to purchase the generating, transmission and other assets of Aquila in Colorado deemed necessary to be acquired by the City Council, pursuant to the provisions of the Franchise Agreement; and WHEREAS, the most efficient and expeditious method of acquisition is by creating an electric utility enterprise, to be owned by the City, pursuant to a provision to be added to the Home Rule Charter of the City; and WHEREAS, the City Council therefore desires to submit a question authorizing the addition of such a Charter provision to the registered electors of the City at the general municipal election to be held on November 8, 2005. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter deleted; underscoring indicates matter added) SECTION 1 There is hereby submitted to a vote of the registered electors of the City of Pueblo at the general municipal election to be held on November 8, 2005, an amendment to the Charter of the City of Pueblo which would add a new section reading as follows: Section 16 -10. Pueblo Electric Utility— Notwithstanding any other provision of this Charter or any Colorado state statute, the Council shall be authorized, without any further preliminaries or limitations and pursuant to the authorization of the registered electors at the general municipal election on November 8, 2005, to create and establish the Pueblo Electric Utility. The City shall designate the Pueblo Electric Utility as an "enterprise" under Article X, Section 20 of the Colorado Constitution. The Council shall be the governing body of the Pueblo Electric Utility. The Pueblo Electric Utility shall be authorized to purchase and acquire the assets of Aquila, Inc. located in Colorado deemed necessary to be acquired by the Council, as well as any other assets beneficial to the operation of the electric utility enterprise, such acquisition(s) to take place in accordance with ordinances to be adopted by the Council. The Pueblo Electric Utility shall be created, established and operated pursuant to ordinances to be adopted by the Council from time to time. SECTION 2 The ballot title (submission clause and title) for the proposed Charter amendment set forth in Section 1 hereof is fixed and adopted as follows: QUESTION CHARTER AMENDMENT Creation of an Electric Utility Enterprise, Authorization of Acquisition and Operation of Assets, and Authorization of Financing for the Acquisition SHALL THE CITY OF PUEBLO, COLORADO, AMEND ITS CHARTER TO AUTHORIZE THE CITY COUNCIL TO CREATE AN ELECTRIC UTILITY ENTERPRISE, AS DEFINED IN ARTICLE X SECTION 20 OF THE COLORADO CONSTITUTION, FOR THE PURPOSE OF OPERATING AND TO PURCHASE AND ACQUIRE, THE ELECTRIC UTILITY ASSETS OF AQUILA, INC., LOCATED IN COLORADO, WHICH THE CITY COUNCIL DEEMS NECESSARY TO BE ACQUIRED, SUCH ACQUISITION, INCLUDING ALL NECESSARY OR INCIDENTAL COSTS RELATED THERETO, TO BE FINANCED BY THE ISSUANCE BY THE CITY THROUGH ITS ENTERPRISE OF REVENUE BONDS, PAYABLE OUT OF ELECTRIC UTILITY REVENUES, SUCH BONDS TO CONTAIN SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE CITY COUNCIL, ACTING AS GOVERNING BODY OF THE ENTERPRISE, MAY DETERMINE? YES NO SECTION 3 The officials of the City are authorized and directed to take all actions necessary, appropriate or required to effectuate the provisions of this Ordinance. The City Clerk is directed to publish notice of election upon the Charter amendment in conformity with the provisions of § 1- 7.5- 107(2.5)(a) and § 31 -2- 210(4), Colorado Revised Statutes. SECTION 4 This Ordinance shall become effective upon final passage; provided, however, that the Charter amendment set forth in this Ordinance shall become effective only upon the affirmative vote thereon of a majority of the registered electors voting thereon at the general municipal election held on November 8, 2005. INTRODUCED August 8, 2005 BY Michael Occhiato Councilperson PASSED AND APPROVED August 22, 2005