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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/21/2003 - FIRST READING OF ORDINANCE NO. 013, 2003, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 20 DATE: January 21, 2003 FORT COLLINS CITY COUNCIL STAFF: Bill Bray Mike Smith , SUBJECT: First Reading of Ordinance No. 013, 2003, Amending Chapter 26, Sections 26-412 and 26-444 1 of the City Code Related to Transmission Facilities and Electric Service. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. I FINANCIAL IMPACT: i The potential loss of franchise revenue is negligible. I I� EXECUTIVE SUMMARY: i This Ordinance revises Section 26-412 of the City Code to authorize the City Manager to j execute an easement or revocable permit to allow non-City owned electric facilities to remain in place or be relocated into City rights-of-way or easements. Current City Code requires a franchise for such lines. Instead of a franchise, the new Code language will permit a routine administrative agreement to address areas where existing non-City owned electric facilities are j located in the city and are required to serve customers outside the city limits. It will also permit the lines to remain in place to continue to serve customers inside the city until such time as the City's electric utility can provide service to the newly annexed customers. A third use of the easement or revocable permit will be to permit existing non-City owned electric facilities to be relocated from private easements into City rights-of-way or easements when such relocation is necessary to accommodate street and intersection improvements or other City-approved projects. The Code changes outline necessary provisions for the easements or revocable permits that are to be authorized by the City Manager. 'i I The revision to Section 26-444 concerns the transfer of customers after annexation. The proposed change eliminates the 90-day limit on the period of time that a non-City owned utility may continue to serve its existing customers after annexation without a franchise. Instead, the change permits the existing utility company to continue to serve its customers within the DATE: ITEM NUMBER: annexation. The service would be allowed to continue beyond the first two years after the grant of a revocable permit authorizing the service to continue by the City Manager, until such time as the City notifies the other utility that it is ready to provide electric service to the annexed customers, or that a franchise is required. 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. With other workload considerations it often takes a year or two to transfer the facilities. In some isolated instances small services are annexed in areas that are remote from existing City electric facilities and it is not feasible to construct the facilities necessary to serve just one customer unless additional development occurs. No franchise has ever been requested or issued for this purpose. Thus, staff recommends that the existing company be allowed to continue to serve these customers without a franchise until the City notifies that company that it is prepared to transfer the service. The loss of potential franchise revenue is negligible because there are few services involved and they generate little electric revenue. BACKGROUND: Section 26-412 of the City Code requires a franchise for the installation or maintenance of electric facilities in streets and other City rights-of-way. The only exceptions to this requirement are the City's electric utility and Platte River Power Authority. Xcel Energy and Poudre Valley Rural Electric 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 may be located in street right-of-way. When an area is annexed, 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. The Code allows these lines in a private easement but does not allow them in City rights-of-way without a franchise. Another concern to be addressed occurs when the City requires that non-City owned lines be relocated to accommodate new development or street widening and intersection improvements. Problems surface when existing lines are located 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 rights-of-way or to be relocated within the City rights-of-way. This is not permitted without a franchise under the current Code, although this provision has not, in fact, been regularly enforced. Staff recommends that the City Code be changed to permit the City Manager to approve easements or revocable permits that would allow existing lines to remain or be relocated in City rights-of-way or easements after annexation. The easement or revocable permit would contain the following: (a) a description of the specific location and nature of the facilities; (b) a requirement that the owner of the facilities would be responsible for maintenance and operation and for any damage or injury resulting from the presence or operation of the facilities; DATE: ITEM NUMBER: (c) a requirement that the facilities be relocated to a location satisfactory to the City at the expense of the owner, in the event that the City determines relocation to be necessary to accomplish a legitimate City purpose; and I (d) a requirement that, except as expressly provided in Section 26-444, the facilities shall not be used to provide electrical or other service to any property in the city limits. In addition, the easement or permit could contain additional terms and conditions necessary to iprotect the City interests. Section 26-444 is another City Code provision needing modification because it sets an unrealistic timeframe for transferring customers following annexation. The Code currently i requires that after annexation, a non-City utility may only serve its existing customers for a period of 90 days without obtaining a franchise. Although it is Fort Collins Utilities' intent to provide electric service in all areas within the city, it is often impractical and uneconomical to i extend electric facilities to serve the annexed customers within the 90-day requirement. It is rare that the transfer can take place in 90 days and it is often a year or more. In these cases no franchise has been requested or authorized. Staff recommends that this time limit be repealed to permit the non-City utility to continue serving the existing customers until such time as the City's electric utility requests to assume responsibility for the electric service to the newly annexed customers. The proposed Code language would allow the service to continue beyond the first two years if the City Manager grants a revocable permit authorizing the service to continue, and would allow it to continue until such time as the City notifies the other utility that it is ready to provide electric service to the annexed customers, or that a franchise is required. 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 November Electric Board Meeting. Boardmembers raised no concerns with the changes proposed by staff. ORDINANCE NO. 013, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, SECTIONS 26-412 AND 26-444 OF THE CITY CODE RELATED TO TRANSMISSION FACILITIES AND ELECTRIC SERVICE WHEREAS,Section 26-412 of the City Code currently requires 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 street, alley, sidewalk or other publicly-owned locations; 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 26-412 as set forth herein would provide an administrative process for allowing those existing electric facilities to remain in or be shifted to a City street, alley, sidewalk or other public right-of-way or utility location, without the grant of a franchise; 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, but because of the substantial infrastructure investment required for the City to provide electric service, will not be connected to the City's electric distribution system within 90 days of annexation; and WHEREAS, the changes to Section 26-444 as set forth herein would provide a simple administrative process to address those circumstances that would allow for continued service to the annexed property,without the grant of a franchise,and would preserve 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 26-412 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, or unless an easement or revocable permit for said improvements has been granted by the city in accordance with this Section. In the event that transmission facilities are properly in place on property annexed by the city, said facilities may remain in place or be relocated into a city street, alley, sidewalk, easement or other public place owned by the city, provided that an easement or revocable permit for the same has been acquired from the city. Any such easement or revocable permit shall contain the following: (1) a specific statement of the location and nature of the subject transmission facilities; (2) a requirement that the owner of said transmission facilities shall be responsible for the maintenance and operation of said facilities,and for any damage or injury resulting from the presence or operation of said transmission facilities; (3) a requirement that said transmission facilities be relocated to a location satisfactory to the city at the expense of the owner of the same,in the event that the city determines such relocation to be necessary to accomplish a legitimate city purpose; and (4) a requirement that, except as expressly provided in § 26-444, said transmission facilities shall not be used for the provision of electrical or other service to any property in the city. The City Manager is hereby authorized to approve and convey such easements and revocable permits under the foregoing circumstances, and is further authorized to include in such easements or revocable permits such additional terms and conditions as the City Manager,in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the city. Section 2. 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 may continue to receive electrical service from any utility previously furnishing such service without complying with the provisions of this Division for a petiod of ninety(90)days aftm tire effierd ve date Of the 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 the City Manager authorizes said continued service through the Brant 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. if a Franchise fbt the ffirnishing Of annexed area in act;ordanee with the piovisions of tire 6ode and tire itfles 2tn 1e6tfl2rtiVL1S Of tile eie&rie tifflity fol the furnishing Of Such electrical service. Introduced and considered favorably on first reading and ordered published this 21st day of January, A.D. 2003,and to be presented for final passage on the 4th day of February, A.D. 2003. Mayor • ATTEST: City Clerk Passed and adopted on final reading this 4th day of February,A.D. 2003. Mayor ATTEST: City Clerk •