HomeMy WebLinkAbout15924RESOLUTION NO. 15924
A RESOLUTION AMENDING AND FIXING THE BALLOT TITLE FOR THE
QUESTION TO BE PROPOSED TO THE ELIGIBLE ELECTORS OF THE CITY
OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE
HELD ON MAY 6, 2025 RELATING TO THE BLACK HILLS COLORADO
ELECTRIC, LLC FRANCHISE AND FIXING THE BALLOT TITLE THEREFOR
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
There is hereby submitted to a vote of the registered electors of the City of Pueblo at the
Special Municipal Election to be held on May 6, 2025 a question whether the City should terminate
the Franchise Agreement with Black Hills Colorado Electric, LLC dba Black Hills Energy formerly
known as Black Hills/Colorado Electric Utility Company, LP and whether the City should purchase
any electric distribution, transmission, and generation systems if determined to be feasible. The
ballot question (submission, clause and title) therefore shall be as follows:
QUESTION NO. 2A - Cancelation of Black Hills Electric Franchise
SHOULD THE CITY OF PUEBLO CANCEL ITS FRANCHISE AGREEMENT WITH
BLACK HILLS COLORADO ELECTRIC, LLC DBA BLACK HILLS ENERGY AND
ACQUIRE THE GENERATION, TRANSMISSION, AND DISTRIBUTION ASSETS OF
BLACK HILLS COLORADO ELECTRIC, LLC DBA BLACK HILLS ENERGY, IF
DETERMINED FEASIBLE?
YES
NO
SECTION 2.
If any section, provision, paragraph, clause or phrase of this Resolution is held or decided
to be unconstitutional, invalid or unenforceable for any reason, such decision shall not affect the
constitutionality, validity or enforceability of the remaining portions of this Resolution.
SECTION 3.
All other ordinances, resolutions or portions thereof inconsistent or conflicting with this
Resolution or any portion hereof are hereby repealed to the extent of such inconsistency or
conflict.
SECTION 4.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with this Resolution to implement the policies and procedures described herein.
SECTION 5.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: March 3, 2025
BY: Brett Boston
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
DEPUTY CITY CLERK
City Clerk's Office Item # C1
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: March 3, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Harley Gifford, Deputy City Attorney
SUBJECT: A RESOLUTION AMENDING AND FIXING THE BALLOT TITLE FOR THE
QUESTION TO BE PROPOSED TO THE ELIGIBLE ELECTORS OF THE
CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL
ELECTION TO BE HELD ON MAY 6, 2025 RELATING TO THE BLACK
HILLS COLORADO ELECTRIC, LLC FRANCHISE AND FIXING THE
BALLOT TITLE THEREFOR
SUMMARY:
Attached is a proposed Resolution amending the ballot title for the question to be
proposed to the eligible electors of the City of Pueblo to opt out of the franchise
assets of Black Hills Energy, if feasible.
PREVIOUS COUNCIL ACTION:
In 2010, Council referred to the voters of the City, Ordinance No. 8186, which granted
an electric utility franchise to Black Hills. The Black Hills franchise was approved by the
voters in a Special Franchise Election held August 10, 2010.
On July 22, 2024, Council approved Resolution No. 15700 opposing the requested rate
increase for delivery of electricity for which Black Hills Electric of Colorado submitted to
the Public Utilities Commission for approval.
On September 23, 2024, Council approved Resolution 15776 establishing project
Account CI2450 Feasibility City Electric Utility, transferred budgeted and appropriated
funds in the amount to $35,525.16 from Project Account CI 2012 Energy Advocacy
Project to Project Account CI2450 Feasibility City Electric Utility and transferred funds
in the amount of $150,000 from Public Works Contract Services to Project CI2450
Feasibility City Electric Utility.
On December 23, 2024, Council approved Resolution No. 15867 retaining GDS
Associates, Inc. to perform a comprehensive energy strategy study.
On February 24, 2025, Council approved Ordinance No. 10908 which referred the
question of whether the City should cancel its franchise agreement with Black Hills
Electric to the eligible electors of the City of Pueblo at the special municipal election to
be held on May 6, 2025 and set the ballot title for the question.
BACKGROUND:
The identified parties in the Electric Utility Service Franchise Agreement effective August
10, 2010 are the City of Pueblo and Black Hills/Colorado Electric Utility Company,
LP. Black Hills/Colorado Electric Utility Company, LP registered the tradename Black
Hills Energy on or about July 21, 2008. On July 10, 2018, Black Hills/Colorado Electric
Utility Company, LP changed its name to Black Hills Colorado Electric, Inc. On
December 31, 2018, Black Hills Colorado Electric, Inc. changed its name to Black Hills
Colorado Electric, LLC. Black Hills Colorado Electric, LLC continues to do business
under the trade name Black Hills Energy.
The previous Ordinance presented to Council for approval of the ballot title referenced
the Ordinance. The ballot title simply referr The reference to
measure and is the name by which voters recognize Black Hills Colorado Electric, LLC;
however, to more precise and avoid any doubt, the proposed Resolution will amend the
ballot title to refer to the name as currently registered with the Secretary of State, Black
Hills Colorado Electric, LLC dba Black Hills Energy.
FINANCIAL IMPLICATIONS:
The City will incur the cost of a Special Municipal Election on May 6, 2025, to be
conducted as a mail ballot coordinated election by the County Clerk. The costs of the
election are currently unknown, but costs will be shared with the Pueblo West
Metropolitan District and perhaps other special districts also holding elections on May 6,
2025.
BOARD/COMMISSION RECOMMENDATION:
On November 21, 2019, the EUC recommended, by a unanimous vote, that the City
create a municipal electric utility and purchase or condemn Black Hills electric facilities
located in the City and Pueblo County.
STAKEHOLDER PROCESS:
Members of the public are the primary stakeholders affected by the proposed Resolution.
The issue of canceling the franchise agreement with Black Hills Electric and creating a
municipal electric utility has been discussed at various public City Council meetings and
work sessions for many years.
ALTERNATIVES:
If this Resolution is not approved, the ballot title as previously approved will be submitted
to voters of the City of Pueblo to vote on the creation of a municipal electric utility.
RECOMMENDATION:
This Resolution should be adopted to avoid confusion on the ballot.
ATTACHMENTS:
None