HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/21/2006 - FIRST READING OF ORDINANCE NO 035, 2006, AMENDING ITEM NUMBER: 31
AGENDA ITEM SUMMARY DATE: February 21, 2006
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
Steve Roy
SUBJECT
First Reading of Ordinance No. 035, 2006,Amending Chapter 23 of the City Code Relating to the
Conveyance of Easements Required to Obtain Utility Service.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The adoption of this Ordinance is not anticipated to have a financial impact.
EXECUTIVE SUMMARY
Generally, utility services such as electrical service from Public Service Company of Colorado in
areas located outside of the city limits,or natural gas service,are governed by tariffs that have been
approved by the Colorado Public Utilities Commission. Such tariffs require that the customer's
receipt of service be deemed to create a utility easement for the installation of service lines and other
infrastructure necessary for the service.
The Code requirement that utility easements must be approved by ordinance creates a substantial
impediment to City staffs ability to arrange for utility services for City facilities and improvements.
To provide a more efficient mechanism for arranging for utility services, staff is requesting that the
City Council amend the City Code to allow the Purchasing Agent, with the approval of the City
Manager, to contract for utility services and grant utility such rights-of-way as may be required in
connection with those services.
ORDINANCE NO. 035, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 23 OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO THE CONVEYANCE OF EASEMENTS
REQUIRED TO OBTAIN UTILITY SERVICE
WHEREAS, Section 23-111 of the City Code provides that the City Council may sell,
convey or otherwise dispose of any and all interests in real property of the City, including utility
easements, if the Council first finds, by ordinance, that such sale or other disposition is in the best
interests of the City; and
WHEREAS, in connection with the procurement of certain utility services, such as natural
gas service and electric service outside of the city limits, the provision of service to the City is
conditioned upon the grant of a utility easement for the installation of service lines and other
infrastructure necessary for the service; and
WHEREAS, this utility easement requirement is generally imposed not only contractually
but also as a condition of service in approved tariffs and other regulatory requirements that in some
instances govern the provision of utility services by non-municipal public utilities; and
WHEREAS, the process for approving utility easements by ordinance in order to comply
with such tariff-imposed requirements for utility easements creates a substantial impediment to City
staffs ability to arrange for utility services for City facilities and improvements; and
WHEREAS, in order to provide an efficient mechanism for arranging for said utility
services,the City Council wishes to amend the City Code so as to allow the Purchasing Agent,with
the approval of the City Manager,to contract for utility services and in doing so to bind the City to
allow the utility providing such services to obtain such rights-of-way as may be required in
connection with the services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Section 23-111 of the Code of the City of Fort Collins is hereby amended to read as
follows:
Sec. 23-111. Authorization to sell real property.
(a) The City Council is hereby authorized to sell, convey or otherwise dispose
of any and all interests in real property owned in the name of the city, whether the
interest in real property is obtained by tax deed or otherwise, provided that the City
Council first finds, by ordinance, that such sale or other disposition is in the best
interests of the city.
b With respect to real property which is a art of the cit 's water or utility
( ) P P P Y P Y h'
systems, the City Council must also find that the disposition will not materially
impair the viability of the particular utility system as a whole and that it will be for
the benefit of the citizens of the city.
(c) With respect to the sale of a certificate of purchase obtained by the city
pursuant to Section 22-97, if such certificate of purchase is to be sold and assigned
for less than its face value,the City Council must authorize such sale and assignment
in accordance with §23-111(a).Prior to City Council approving such sale,however,
the city must give notice to all persons having any interest in the property for which
the certificate of purchase was issued or having any interest in the proceeds of the
proposed sale. Such notice shall be given by publication once each week for two(2)
successive weeks in an official newspaper published in the city. Written notice shall
also be given by mail within ten(10)days after the first publication,postage prepaid,
first class mail,to all governmental taxing units having taxes or other claims against
the property, and to the last known address of all record interest holders in the
property. In addition, if such sale and assignment will, in the judgment of the
Financial Officer, impair in any way the payment of any principal or interest owing
under the bonds which are paid with assessments collected from the property
described in the certificate of purchase, then such written notice shall also be given
to the bondholders. Notice to bondholders shall be mailed, in the case of registered
instruments, to those names and addresses which are recorded on the registration
books of the city or,in the case of bearer instruments,to those names and addresses
which may be otherwise known to the city. The date of sale of any certificate of
purchase for which notice is required under the provisions of this Section shall be not
less than thirty (30) days nor more than forty-five (45) days after the date of first
publication of the notice.Notwithstanding the foregoing,the city's Financial Officer
may sell certificates of purchase without notice or formal approval by the City
Council when such sale is made in the manner and on the terms provided in§ 22-97.
(d) The Planning and Zoning Board may, without formal approval by the City
Council, vacate easements and other rights-of-way, except streets and alleys, either
by resolution or by approval of replats containing notation of such vacation as
provided in § 2-353(4) of this Code.
(e) The Mayor is authorized to execute all leases, deeds and other instruments
of conveyance.
(f) Notwithstanding',the foregoing requirements; in the event that the city's
Procurement of any,utility service from a regulated publio utility is conditioned upon
the grant of rights-of*way for installation of service lines and other itn =gvettenfs
dircetly related'to said utility service,the lrltrchasiug A gent tray,wiW fiti approval
Of the City Manager, enter into a cent Net for said utility services and 5o authorize
the conveyance of such rights-o£way es:fii y be h6cessary for the pruvi�ion of such
utility services>to the city.
Introduced, considered favorably on first reading, and ordered published this 21 st day of
February, A.D. 2006, and to be presented for final passage on the 7th day of March,A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 7th day of March, A.D. 2006.
Mayor
ATTEST:
City Clerk