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