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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/07/2003 - SECOND READING OF ORDINANCE NO. 133, 2003 AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 16 DATE: October 7, 2003 FORT COLLINS CITY COUNCIL FROM: Bill Bray Mike Smith SUBJECT: Second Reading of Ordinance No. 133, 2003, Amending Chapter 26 of the City Code Related to Electric Transmission Facilities and Electric Service. RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: This Ordinance, which was unanimously adopted on First Reading on September 16, 2003, revises Sections 26-411 and 26-412 of the Municipal Code to authorize non-City owned electric transmission facilities (those not serving customers within the City) inside the City limits following annexation to remain in place or be relocated into City rights-of-ways or public utility easements under the same terms and conditions as other public utilities. This Ordinance also revises Section 26-444 regarding transfer of customers after annexation. The proposed change eliminates the 90-day limit on the period during which a non-City owned utility may continue to serve its existing customers after annexation without a franchise. AGENDA ITEM SUMMARY ITEM NUMBER: 18 DATE: September 16, 2003 FORT COLLINS CITY COUNCIL STAFF: Bill Bray Mike Smith SUBJECT: First Reading of Ordinance No. 133, 2003, Amending Chapter 26 of the City Code Related to Electric Transmission Facilities and Electric Service. RECOMMENDATION: Staff recommends adoption otf e Ordinlnce o i t Reading FINANCIAL IMPACT: The potential loss of franchise revenue is negligible. fa l .. y EXECUTIVE SUMMARY: The Ordinance revises Sections 26-411 and 26-412 of the Municipal Code to authorize non-City owned electric transmission facilities (those not serving customers within the City) inside the n t e� dm City limits following annexation to Term m lace o e to ed into City rights-of-ways or public utility easements undethe sam terms n co ditio as other public utilities. Current City Code requires a franchisesucfr lazes; . _ The Ordinance also revises Section 26-444 regarding transfer of customers after annexation. The proposed change eliminates the 90-day limit on the period during which a non-City owned utility may continue to serve its existing customers after annexation without a franchise. Instead, the new language permits the existing utility company to continue to serve its customers within the annexed area until such time as the City notifies the other utility of its readiness to provide electric service to the annexed customers. Although the City's electric utility intends to provide electric service to all properties within the city limits, it is not practical to do so within 90 days. BACKGROUND: Section 26-412 of the Code requires a franchise for the installation or maintenance of electric facilities in streets and other City rights-of-way. Xcel Energy and Poudre Valley Rural Electric DATE: ITEM NUMBER: 19 Association provide electric service in the areas outside the city limits. In some cases these electric lines are installed in privately obtained easements and in other places they are located in street right-of-way. When an area is annexed, these non-City owned electric facilities are still often required to serve their customers that remain outside the city limits. The facilities may also be needed on a temporary basis to continue to serve customers inside the city limits until such time as the City's electric utility can construct the necessary facilities to serve the newly annexed customers. When these lines are in a private easement the current Code language does not require that a franchise be obtained, but if the lines are in City right-of-way maintenance of the lines in the right-of-way violates the current requirement that a franchise be obtained. The violation of this Code provision has been inadvertently overlooked inthe past. In some instances the City quires t no it o elarocated fric lines be relocated from an existing location to accommdate n de o ent eet widening and intersection improvements. Problems surface-4vh sti lines in a privately obtained easement but must be relocated or placed underground to accommodate City development or street improvements. The City's engineering department desires to expedite resolution of these issues in order to proceed with the construction of the improvements. In the above situations it is often most practical to allow the non-City owned electric facilities to remain in City right-of-way or to be relocated within the City right-of-way. This is not permitted without a franchise under the current Code. Staff recommends that the Code be changed to permit existing lines to remainncon relo ed i ri of- y or public utility easements subject to the same terms an ipublic utilities in those places. Staff further o s th s -h loca ns that have been approved by revocable permit in the past b It is important to note that any new non-City owned electric transmission facilities or those providing service to customers within the Citv would still be subject to franchise requirements per City Code Chapter 26, Article VI, Divisions 2 and 3. The Ordinance amends Section 26-444 of the Code to eliminate the unrealistic timeframe for transferring customers following annexation that this Section currently imposes. The Code currently requires that after annexation, a non-City utility may only serve its existing customers for a period of 90 days withou a 'n Ir°' hi th g9ris Fort Collins Utilities' intent to provide electric service in areas hin th C s ofor mpractical and uneconomical to extend electric facilities to se the an ed t ers withe 90-day requirement. It is rare that the transfer can take place i d days n it ' ften a more. In these cases a Code violation has taken place because no franchise has been requested or authorized. Staff recommends that this time limit be modified to permit the non-City utility to continue serving the existing customers for a period of two years, if the City has not yet requested to assume responsibility for the electric service to the newly annexed customers. After the two year period, the new language would allow the City Council to grant a revocable permit to allow service within the City to continue until such time as the City is ready to provide service. An insignificant amount of franchise revenue would be lost because the City would continue to assume responsibility for serving the annexed customers as quickly as feasible. Although no formal action was taken, this issue was raised at the April 2003 Electric Board Meeting. Board members raised no concerns with the changes proposed by staff. ORDINANCE NO. 133, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CITY CODE RELATED TO ELECTRIC TRANSMISSION FACILITIES AND ELECTRIC SERVICE WHEREAS, Section 26-411 and Section 26-412 of the City Code currently require that a franchise be acquired for any non-City owned electric facilities in any City street, alley, sidewalk or other public place in the city, or to maintain or install any pole or mast for electric lines; and WHEREAS, in certain instances the City annexes property with non-City owned electric facilities already in place in a street, alley, sidewalk or other publicly-owned location; and WHEREAS, on some occasions non-City owned electric facilities must be relocated from an existing easement or other permissible location into a City street, alley,sidewalk or other public right-of-way or utility location, in connection with a City capital construction project or other City project or purpose; and WHEREAS, the changes to Section 26-411 and Section 26-412 as set forth herein would allow those existing electric facilities to remain in place,to be shifted to a City street,alley,sidewalk or other public right-of-way or utility location on the same terms and conditions under which other public utilities locate in the same; and WHEREAS, this Ordinance in addition ratifies the prior authorization of the relocation of such facilities in City public right-of-way; and WHEREAS, Section 26-444 of the City Code currently requires that any annexed property be served by the City's electric utility within 90 days of annexation, unless a franchise is obtained by the non-City electric utility prior to the expiration of the 90-day period; and WHEREAS,in certain instances the City annexes property that is served by non-City electric utility that will require substantial infrastructure investment for the City to take over provision of electric service; and WHEREAS, in such instances the requirement set out in City Code Section 26-444 that a franchise be obtained in order to allow such service from the non-City electric provider to continue longer than 90 days after annexation is problematic as the City is not able to provide the service; and WHEREAS, the changes to Section 26-444 as set forth herein would allow for continued service to the annexed property, without the grant of a franchise, while preserving the City's ability to take over servicing of that property when feasible. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-411 of the Code of the City of Fort Collins be amended to read as follows: See. 26-411. Compliance. It shall be unlawful to maintain or install any wires, cables or other equipment for the transmission of electric current impulses in,on, under or over any street, alley, sidewalk, public utility easement or other public right-of-way, or to maintain or install any pole or mast to support or hold such wires or equipment in any such place, without having fully complied with the provisions of this Division. Section 2. That Section 26-412 of the Code of the City of Fort Collins be amended to read as follows: Sec. 26-412. Franchise or other authorization required. No such wire,cable,pole or other equipment shall be installed or maintained over, on or under any such place unless a franchise has been granted for such installation or maintenance, except that: (1) transmission facilities that are in place in a public right-of-way at the time the underlying property is annexed into the city may remain in place without a franchise; (2) transmission facilities that are in place over, on or under property other than a public right-of-way at the time the underlying property is annexed into the city may, subsequent to annexation,be relocated into a city street, alley, sidewalk, public utility easement, or other public right-of-way and maintained therein without a franchise, subject to all of the same requirements that are applicable to the placement and maintenance of other public utilities in said locations; and Section 3. That transmission facilities that have been relocated and maintained over, on or under a city street, alley, sidewalk,public utility easement or other public right-of-way pursuant to a revocable permit granted by the City prior to the effective date of this ordinance are hereby deemed to have been properly authorized in accordance with City Code section 26-412, above. Section 4. That Section 26-444 of the Code of the City of Fort Collins be amended to read as follows: See. 26-444. Annexations. Properties within any annexation to the city maycontinue to receive electrical service from any utility previously furnishing such service without complying with the provisions of this Division.until the receipt of written notice from the city of the city's readiness to provide such service. As of the date upon which the city has declared itself to be responsible for providing such service, all electrical service within any annexed area shall be provided in accordance with the provisions of this Division. If the city is unable to provide electrical service to annexed property prior to the expiration of the second year after annexation of that property,then the utility previously furnishing service may continue to do so if said continued service is authorized by the City Council through the grant of a revocable permit for that purpose. Any such revocable permit shall authorize the continued provision of electric service by the non-city utility to the annexed property until such time as the city either determines that the city is ready to provide electric service,or notifies said non-city utility that a franchise shall be required for the continuation of such service. Introduced and considered favorably on first reading and ordered published this 16th day of September, A.D. 2003, and to be presented for final passage on the 7th day of October, A.D. 2003. r, Mayor ATTEST: LL�� City Clerk Passed and adopted on final reading this 7th day of October, A.D. 2003. Mayor ATTEST: City Clerk