HomeMy WebLinkAboutMINUTES-07/25/2000-AdjournedJuly 25, 2000
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Adjourned Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, July 25, 2000,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Bertschy, Kastein, Martinez, Mason and Weitkunat.
Councilmembers Absent: Byrne and Wanner.
Staff Members Present: Fischbach, Harris, Roy.
Resolution 2000-97
Concerning Approval of a Revocable Permit Agreement
Between the City and McLeodUSA Telecommunication
Services, Inc. Relating to the Installation of a Fiber Optic Cable
in Certain City Streets and Rights -of -Way. Adopted
The following is staff's memorandum on this item.
"Executive Summary
McLeod USA Telecommunication Services, Inc. ("McLeod USA") is a telecommunications carrier
that provides telecommunication services throughout the State of Colorado and is currently
constructing a fiber optic telecommunications system in the State. City staff and McLeod USA have
negotiated a proposed Revocable Permit Agreement, which is attached as Exhibit 'B" to the
Resolution (the "Agreement"), that would grant to McLeod USA a revocable permit, as provided in
Section 10 of Article XI of the City Charter. The revocable permit would authorize McLeod USA to
install and maintain underground a fiber optic cable within certain City streets and rights -of -way
(as shown on the map attached as Exhibit "A" to the Resolution). (The City Council granted
McLeod USA a similar revocable permit on August 17, 1999, in Resolution 99-106, butfor different
streets and rights -of -way.)
Under the Agreement, McLeod USA will pay the City a $250 annual administration fee for the
revocable permit. It will also be required to obtain from the City all excavation permits and to pay
all fees that are required under the City Code and the City's Street Standards when excavating in
City streets and rights -of -way. Further, McLeod USA will be obligated to pay the City's telephone
occupation tax as this tax is currently being assessed to US West and other telecommunication
carriers. However, McLeod USA will not be paying, at least for now, any compensation to the City
for use of the City's streets and rights -of -way. It is currently an unsettled question of law whether
home rule cities, such as Fort Collins, can impose a fee or charge upon telecommunication carriers
in consideration for their use of municipal streets and rights -of -way. This unsettled question of law
exists because of a State statute that currently prohibits all municipalities from imposing such a fee
or charge on telecommunications carriers (C.R.S. Section 38-5.5-107). Consequenth, the
Agreement provides that if the courts or subsequent legislation resolve this unsettled question of law
in favor of home rule cities imposing such a fee or charge, McLeod USA agrees to begin negotiations
with the City to establish the fee or charge that will be required to be paid under the Agreement.
It should also be noted that the Agreement is limited in its scope. McLeod USA is only seeking to
install its fiber optic cable in a specific route as part of McLeod USA's fiber optic backbone loop for
the entire front range, but intends in the future to provide service off of this backbone to customers
throughout the City. Before McLeod USA can use streets and rights -of -way throughout the City to
expand its services, it will be necessaryfor McLeod USA to enter into another agreement with the
City in the form of either a franchise or another revocable permit. In the near future, McLeod USA
and City staff will be meeting to discuss and negotiate this agreement. If such an agreement is
successfully negotiated, it will have to be approved by the City Council before going into effect. "
Information Technology Director Gary Gordier gave a brief staff presentation on this item.
Councilmember Mason made a motion, seconded by Councilmember Kastein, to adopt Resolution
2000-97. The vote was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Mason and
Weitkunat.
THE MOTION CARRIED.
Executive Session Authorized
Councilmember Mason made a motion, seconded by Councilmember Betschy to adjourn into
Executive Session for the purpose of discussing possible land acquisition. Yeas: Councilmembers
Bertschy, Kastein, Martinez, Mason and Weitkunat.
THE MOTION CARRIED.
The meeting adjourned at 6:40 p.m.
ATTEST:
1
Adjournment
UR
Mayor Prn T,