HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/20/2007 - SECOND READING OF ORDINANCE NO. 023, 2007, SUBMITT ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: February 20, 2007
FORT COLLINS CITY COUNCIL STAFF: Steve Roy
SUBJECT
Second Reading of Ordinance No. 023,2007, Submitting to a Vote of the Registered Electors of the
City of Fort Collins a Proposed Amendment to Article XI of the City Charter, Pertaining to
Franchises and Public Utilities.
RECOMMENDATION
Staff recommends adoption of this Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance,unanimously adopted on First Reading on February 6,2007,asks the electors of the
City of Fort Collins at the April 3,2007 election whether they wish to amend the City Charter so that
the existing 20-year limit on franchises and leases would apply only to franchises.
ATTACHMENTS
1. Copy of the First Reading Agenda Item Summary- February 6, 2007.
ATTACHMENT 1
ITEM NUMBER: 24
AGENDA ITEM SUMMARY DATE: February 6, 2007
FORT COLLINS CITY COUNCIL STAFF: Steve Roy
SUBJECT
First Reading of Ordinance No. 023, 2007, Submitting to a Vote of the Registered Electors of the
City of Fort Collins a Proposed Amendment to Article XI of the City Charter, Pertaining to
Franchises and Public Utilities.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
EXECUTIVE SUMMARY
This proposed Charter amen nt asks a ele r o the CYi0ainchises
Fort Collins whether they wish
to amend the City Charter so th exi 0- limit and leases would apply
only to franchises.
BACKGROUND
Article XI of the City Charter, pertaining to Franchises and Public Utilities, states in Section 5 that
"no franchise, lease or right to use the streets or the public places or property of the city shall be
granted for longer than twenty(20) years." The context of the provision, which has been in place
in the City Charter since at least 1918, suggests that this provision is intended to apply only to
franchises, such as those granted to outside utility providers. A strict reading of the wording,
however, would make the provision applicable to all leases of City property.
There are important reasons why ' h it ' sh o p to all leases of City property.
For example, there are leases der h th e e it , t ' own expense, construct costly
improvements that, at the end f the le to come a property of the City. If the term
of this kind of lease cannot ex d e tential 1 ees may be unwilling to fund the
improvements needed to make the transaction worthwhile from their standpoint,and the City could
lose a valuable opportunity to make beneficial use of its property.
ORDINANCE NO. 023, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUBMITTING TO A VOTE OF THE REGISTERED ELECTORS OF THE CITY OF
FORT COLLINS A PROPOSED AMENDMENT TO ARTICLE XI OF THE
CITY CHARTER, PERTAINING TO FRANCHISES AND PUBLIC UTILITIES
WHEREAS,Article IV, Section 8 of the Charter of the City of Fort Collins provides that the
Charter may be amended as provided by the laws of the State of Colorado; and
WHEREAS, Section 31-2-210, C.R.S., provides that Charter amendments maybe initiated
by the adoption of an ordinance by the Council submitting a proposed amendment to a vote of the
registered electors of the City of Fort Collins; and
WHEREAS, Article XI of the City Charter addresses the granting of franchises and the
limitations associated therewith; and
WHEREAS, Section 5 of Article XI limits the term of franchises, leases and other rights to
use the streets or other public places and property of the City to not more than twenty years; and
WHEREAS, the reference to leases and rights to use city property within the Article dealing
with franchises has created uncertainty as to the meaning and intent of this section of the City
Charter; and
WHEREAS,there are important instances where it is in the City's best interests to enter into
leases in non-franchise related situations for terms of longer than twenty(20) years; and
WHEREAS the City Council believes that Section 5 of Article XI of the City Charter should
be amended to clarify that the twenty-year limitation set forth therein is only applicable to franchises,
thereby giving the City the discretion to enter into longer term leases in non-franchise situations
when to do so would be in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the following proposed change to Article XI, Section 5 of the City
Charter shall be submitted to the registered electors of the City as "Proposed Charter Amendment
No. 2" at the regular municipal election to be held on Tuesday, April 3, 2007:
Section 5. Term, compensation.
No franchise shall be granted for longer than twenty(20)years. Every grant
of a franchise shall fix the amount and manner of payment of the compensation to be
paid by the grantee for the use of the same, and no other compensation of any kind
shall be exacted for such use during the life of the franchise. This provision shall not
exempt the grantee from any lawful taxation upon his or her property, nor from any
license,charges,or other impositions levied by the Council,not levied on account of
the use granted by the franchise.
Section 2. That the following ballot language is hereby adopted for submitting Proposed
Charter Amendment No. 2 to the voters at said election:
CITY-INITIATED
PROPOSED CHARTER AMENDMENT NO. 2
Shall Article Xl, Section 5 of the Fort Collins City Charter (Franchises and Public
Utilities)be amended to eliminate leases and other rights from the existing twenty-year
limit on the length of franchises, leases and other rights that the City can grant to
private persons or entities to use the streets or public places or property of the City,so
that only franchises will be subject to this twenty-year limit?
YES
NO
Introduced and considered favorably on first reading, and ordered published this 6th day of
February, A.D. 2007, and to be presented for final passage o 20th day of February, A.D. 2007.
Mayor
AXTEST. .
City Clerk
Passed and adopted on final reading this 20th day of February, A.D. 2007.
Mayor
ATTEST:
City Clerk