HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/02/2019 - ITEMS RELATING TO DELIVERY OF TELECOMMUNICATION SEAgenda Item 13
Item # 13 Page 1
AGENDA ITEM SUMMARY July 2, 2019
City Council
STAFF
Erin Shanley, Broadband Marketing Manager
Darin Atteberry, City Manager
Colman Keane, Broadband Director
Kevin Gertig, Utilities Executive Director
Lisa Rosintoski, Utilities Customer Connections Manager
Judy Schmidt, Legal
Cyril Vidergar, Legal
SUBJECT
Items Relating to Delivery of Telecommunication Services by Fort Collins Connexion.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 089, 2019, Amending Chapter 26 of the Code of the City of Fort Collins to
Further Authorize and Implement the City’s Provision of Telecommunication Facilities and Services as
Provided in City Charter Article XII, Section 7.
B. First Reading of Ordinance No. 091, 2019, Authorizing the Purchasing Agent to Enter into Licensing
Contracts With a Term Length in Excess of Five Years for the Acquisition of Video Content Rights in
Furtherance of Fort Collins Connexion’s Delivery of Telecommunication Services.
The purpose of Ordinance No. 089, 2019, is to adopt a variety of revisions, clarifications and additions to City
Code Chapter 26 pertaining to Utility Services to accommodate telecommunication services. These revisions
include:
1. Creation of basic authority and an operational framework for the provision of telecommunication facilities
and services (broadband) (new Article VIII of Chapter 26).
2. Amendments to add the “telecommunication services division” (broadband or Connexion) as a division of
the electric utility, and a part of the existing electric utility enterprise (as authorized by Section 7, Article XII
of the City Charter) and to separate administration and supervision of the telecommunication services
division under the direction of the City Manager from that of the electric utility under the direction of the
Utilities Executive Director.
3. Amendments to customer billing and collection provisions to address the existence and treatment of the
telecommunication services division.
Ordinance No. 091, 2019, will approve long-term licensing agreements with a term of up to seven years for
video content to be delivered to Connexion’s subscribers. City Code Section 8-186(a) limits the term of
contracts for services to a total of five years unless authorized by Council by ordinance.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
Agenda Item 13
Item # 13 Page 2
BACKGROUND / DISCUSSION
Ordinance No. 089, 2019
The following summarizes the actions by ballot measure and Council taken to date to authorize and begin
construction and operation of a municipal broadband system referred to as “Connexion” or “Fort Collins
Connexion”:
• At a special election on November 3, 2015, City voters authorized the City to provide high-speed internet
services, including, high-bandwidth broadband services, telecommunication services, and video/television
services for the City of Fort Collins.
• At a special election on November 7, 2017, City voters approved an amendment to the City Charter adding
a new Section 7 to Charter Article XII (“Charter Section 7”) to authorize the City’s provision of
telecommunication facilities and services, including, without limitation, “broadband Internet facilities and
services,” as both terms are defined therein (“Telecommunication Facilities and Services”).
• On January 16, 2018, City Council adopted Ordinance No. 011, 2018, to amend various City Code
sections to implement the authority granted in Charter Section 7 by authorizing the Electric Utility
Enterprise to acquire, construct, provide, fund and contract for Telecommunication Facilities and Services
and by authorizing the Electric Utility Enterprise to exercise the power to issue revenue bonds to fund the
provision of Telecommunication Facilities and Services as provided in paragraph (b) of Charter Section 7.
• On January 16, 2018, City Council also adopted Ordinance No. 010, 2018, to appropriate $1.8 million from
the City’s General Fund as a loan to the City’s Light and Power Fund to be used by the Electricity Utility
Enterprise for start-up costs related to providing Telecommunication Facilities and Services.
• On April 3, 2018, City Council acting ex officio as the Board of the Electric Utility Enterprise adopted
Ordinance No. 003 authorizing the issuance of revenue bonds to fund the construction and operation of
the municipal broadband project to provide Telecommunication Facilities and Services.
The changes to City Code Chapter 26 (Utilities) set forth in this Ordinance create an operational framework for
administration and supervision of the telecommunication services division of the electric utility in relationship to
the administration and supervision of the electric utility and the City’s other utilities and the provision of
telecommunication facilities and services to customers. In summary, the Ordinance:
• Modifies the basic structure of City utilities services to include the telecommunication facilities and services
division to the electric utility and as a part of the electric utility enterprise.
• Authorizes the City Manager to administer and supervise the telecommunication services and facilities
division of the electric utility, which is to be managed by the Broadband Executive Director, while
supervision and management of the electric utility remains under the Utilities Executive Director.
• Delegates to the City Manager the authority to set rates, fees and charges for telecommunication services.
o Must be at least sufficient to pay the cost of providing telecommunication facilities and
services, operating and maintaining the telecommunication services system in good repair
and working order, pay a 6% PILOT to the general fund, pay debt service on all bonds and
other obligations, maintain adequate working capital for operational business needs, and
maintain adequate funding for system extension, enlargement and replacement.
o Different rates, fees and charges may be set for residential and business customers.
o Requires the City Manager to notify Council of the rates, fees, and charges set from time to
time at least 7 days before posting such rates on the broadband website.
o A schedule of rates, fees and charges must be posted on the broadband website and be filed
with the City Clerk for public inspection.
• Delegates to the City Manager the authority to set terms and conditions of service and promulgate rules
and regulations for telecommunication services.
• Contains privacy, net neutrality and network management provisions.
Agenda Item 13
Item # 13 Page 3
• Addresses PILOT and franchise payments and benefits to be paid by telecommunication services to the
City.
• Integrates telecommunication services and facilities into the overall utility billing system.
Ordinance No. 091, 2019
Ordinance No. 091, 2019, approves long-term licensing agreements with a term of up to seven years for video
content to be delivered to Connexion’s subscribers. This Ordinance will authorize the Purchasing Agent to
execute licensing contracts for video content for up to seven years, conditioned upon the passage of
Ordinance No. 006 (the “Enterprise Ordinance”) by the Board of the Electric Utility Enterprise.
The longer term is necessary to gain access to proprietary video content to be delivered to Connexion
subscribers. The video content licensing market is unique and limited in that it involves proprietary content,
restrictions imposed by video content developers, and standardized licensing periods and contract provisions.
Because the video content is unique and available only from one source, Connexion will have very limited or
no bargaining power to modify the standard terms and conditions. Access to sufficient video content in high
market demand will contribute to Connexion’s successful delivery of telecommunication services.
The Enterprise Ordinance is scheduled to be heard by the Board at its meeting scheduled concurrently with
this Council meeting.
CITY FINANCIAL IMPACTS
Ordinance No. 089, 2019
The intent of the proposed Code changes is to extend many current financial practices associated with
traditional utility services to telecommunication services to protect the associated assets in a financially
prudent manner.
Ordinance No. 091, 2019
The cost of obtaining video content will be passed through Connexion subscribers who subscribe to video (TV)
programming.
ATTACHMENTS
1. Powerpoint presentation (PDF)
1
CITY COUNCIL
City Code Amendments to Further Authorize and
Implement Telecommunication Facilities and Services –
Fort Collins Connexion (Broadband)
July 2, 2019
ATTACHMENT 1
Background
Nov 2015 – SB152 Election held; passed at 83%
Aug 2017 – Broadband Business Plan Version III adopted
Nov 2017 – 57% voter approval of ballot measure adding tele-
communication services to City Charter and bond
financing
Jan 2018 – City Council appropriated $1.8M loan to Electric Utility
Enterprise for start-up costs and adopted interim City Code
Changes to facilitate start-up and financing
May 2018 – Electric Utility Enterprise (Council) authorized bonds
July 2018 – Unveiled “Fort Collins Connexion”
Nov 2018 – Construction began
2
Ballot Language Allowed for
• Council to authorize the existing electric utility to provide
telecommunication facilities and services or create a separate
telecommunications utility.
• Issue revenue bonds up to $150 million.
• Delegate to the City Manager some or all of Council’s
authority to set customer charges for telecommunication
facilities and services.
• Go into executive session to consider matters pertaining to
issues of competition in providing these facilities and services.
3
January 2018 Council Actions
• Council authorized code changes for the existing Electric
Utility to acquire, construct, provide, fund and contract for
telecommunication facilities and services and the existing
Electric Utility Enterprise to issue revenue bonds and other
debt obligations to fund such facilities and services.
• These changes also included assigning to the City Manager
the direct responsibility to administer and supervise the
Electric Utility’s provision of broadband facilities and services.
4
Purpose of Ordinance No. 089
• Adjust existing Utilities structure in City Code Chapter 26 (Utilities) to add
telecommunications services (“Broadband”-“Connexion”) as a division of
the Electric Utility under the umbrella of the Electric Utility Enterprise.
• Authorize the City Manager to administer and supervise the
telecommunication services and facilities division of the electric utility,
which will be managed by the Broadband Executive Director.
• Management of the electric utility will remain under the Utilities Executive
Director.
• Add new Article VIII to Chapter 26 creating an operational framework and
authority to begin providing telecommunications services to subscribers.
5
Summary of City Code Changes
Rates Fees and Charges
• Delegates authority to the City Manager to set rates, fees and charges for
telecommunication services – must at least cover costs of providing services;
• residential and business rate classes will differ;
• notify Council 7 days before posting new rate sheets and file with City Clerk
for public access.
Terms and Conditions of Service
• Delegates authority to the City Manager to set terms and conditions of service
• Also authorizes City Manager to promulgate rules and regulations for
telecommunication services.
6
Summary - Continued
Privacy, net neutrality and network management
• Customer accounts, including PII and financial info, integrated into
Utility Billing and Collection system and subject to same privacy
provisions as other utility customer information
• Net neutrality provision – commitment to treat data equally and will
not intentionally block, slow down or charge for specific content
• Network Management Policies - to be set by City Manager and
customer notice to be provided as required by federal regulations
7
Summary - Continued
PILOT, Taxes and Franchise Fees
• Payment in Lieu of Taxes (PILOT) = 6% of gross revenues from all
services; paid to general fund;
• Services subject to sales and use taxes in same manner as other
providers
• Franchise Fee = 5% of video services charges; same as other cable
service providers (included in PILOT)
• City Manager authorized to require same payments and benefits (e.g.,
PEG fees, PEG channels, other enhancements) by Connexion as are
required from other telecommunication service providers under City
franchise agreement to maintain parity
8
Summary - Continued
Other Provisions:
• Ability to turn off service for non-payment, violations of terms and
conditions of service, or other violations of Code provisions.
• Subscriber provides right of inspection and access to premises
served
• Administrative appeal procedure for subscriber who believes
decision under Article VIII is improper.
9
Purpose & Summary of Ordinance 091
• This Ordinance authorizes the City’s Purchasing Agent to sign long-
term licensing agreements – terms up to 7 years – for video content to
be delivered to Connexion subscribers.
• City Code otherwise limits the Purchasing Agent’s authority to
execution of such agreements for not more than 5 years.
• The longer term is necessary to gain access to proprietary video
content that is in high demand – will contribute to successful video
offerings by Connexion
• Facilitates and is conditioned on approval of Ordinance No. 006 of the
Electric Utility Enterprise Board approving a set of long-term license
agreements for such video content.
10
End of Presentation
11
Ballot Language November 2017
Shall Article XII of the City of Fort Collins Charter be amended to allow, but not require, City
Council to authorize, by ordinance and without a vote of the electors, the City’s electric utility or a
separate telecommunications utility to provide telecommunication facilities and services, including
the transmission of voice, data, graphics and video using broadband Internet facilities, to
customers within and outside Fort Collins, whether directly or in whole or part through one or
more third-party providers, and in exercising this authority, to: (1) issue securities and other debt,
but in a total amount not to exceed $150,000,000; (2) set the customer charges for these facilities
and services subject to the limitations in the Charter required for setting the customer charges of
other City utilities; (3) go into executive session to consider matters pertaining to issues of
competition in providing these facilities and services; (4) establish and delegate to a Council-
appointed board or commission some or all of the Council’s governing authority and powers
granted in this Charter amendment, but not the power to issue securities and other debt;
and (5) delegate to the City Manager some or all of Council’s authority to set customer
charges for telecommunication facilities and services?
12
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ORDINANCE NO. 089, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO FURTHER AUTHORIZE AND IMPLEMENT THE CITY’S
PROVISION OF TELECOMMUNICATION FACILITIES AND SERVICES
AS PROVIDED IN CITY CHARTER ARTICLE XII, SECTION 7
WHEREAS, at a special election on November 3, 2015, City voters authorized the City
to provide high-speed internet services, including, without limitation, high-bandwidth broadband
services, telecommunication services, and/or cable television services within the City’s growth
management area; and
WHEREAS, at a special election on November 7, 2017, City voters approved an
amendment to the City Charter adding a new Section 7 to Charter Article XII (“Charter Section
7”); and
WHEREAS, paragraph (a) of Charter Section 7 grants the City Council certain powers
related to the City providing “telecommunication facilities and services,” including, without
limitation, “broadband Internet facilities and services,” as both terms are defined in paragraph (f)
of Charter Section 7 (“Telecommunication Facilities and Services”); and
WHEREAS, on July 20, 1993, the City Council adopted Ordinance No. 060, 1993
establishing the City’s Electric Utility as an enterprise of the City under Section 20 of Article X
of the Colorado Constitution (the “Electric Utility Enterprise”) by adding Section 26-392 to the
City Code; and
WHEREAS, on January 16, 2018, the City Council adopted Ordinance No. 011, 2018
(“Ordinance 011”) to amend various City Code Sections to implement the authority granted in
Charter Section 7 by authorizing the Electric Utility Enterprise to acquire, construct, provide,
fund and contract for Telecommunication Facilities and Services and by authorizing the Electric
Utility Enterprise to exercise the power to issue revenue bonds to fund the provision of
Telecommunication Facilities and Services as provided in paragraph (b) of Charter Section 7;
and
WHEREAS, Ordinance 011 also amended the City Code as follows:
(a) Section 8-77 to provide that the Electric Utility Enterprise’s revenues, debt
issuance proceeds and expenditures related to telecommunication facilities and
services shall be deposited, expended and administered through the City’s Light
and Power Fund;
(b) Sections 2-504 and 26-21 to delegate to the City Manager the direct responsibility
to administer and supervise the Electric Utility Enterprise’s provision of
telecommunication facilities and services and to make other conforming changes
to the administration of Utility Services in light of this assignment of direct
responsibility to the City Manager; and
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(c) Section 1-2 to amend the definition of service area to reflect that some service
area directors do not report directly to the City Manager; and
WHEREAS, on January 16, 2018, the City Council also adopted Ordinance No. 010,
2018, to appropriate $1.8 million from the City’s General Fund as a loan to the City’s Light and
Power Fund to be used by the Electricity Utility Enterprise for start-up costs related to providing
Telecommunication Facilities and Services; and
WHEREAS, on April 3, 2018, the City Council acting ex officio as the Board of the
Electric Utility Enterprise adopted Ordinance No. 003 authorizing the issuance of revenue bonds
to fund the construction and operation of the municipal broadband project to provide
telecommunications facilities and services (the “Bonds”); and
WHEREAS, on May 1, 2018, the City Council adopted Ordinance No. 056, 2018,
appropriating the proceeds from the Bonds for capital, operating, debt service and art in public
places expenditure associated with the construction of a broadband system to provide
telecommunications facilities and services to customers within the Fort Collins Light and Power
Fund; and
WHEREAS, this Ordinance adds a new Article VIII to Chapter 26 of the City Code
pertaining to the telecommunication services division of the Electric Utility and a part of the
Electric Utility Enterprise and will further implement the authority granted in Charter Section 7
by adopting an operational framework and the authority necessary to begin providing
telecommunication facilities and services to subscribers; and
WHEREAS, the City Council hereby finds that this Ordinance is necessary for the
public’s health, safety and welfare and is in the best interests of the City and its residents,
businesses, and public and private organizations and of the Electric Utility’s ratepayers.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 2-504 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 2-504. - Utility Sservices; duties of Utilities Executive Director and City
ManagerDirector.
(a) Utility Sservices shall be and is hereby created as a service area of the City.
(b) Except as provided in paragraph (c) below, Uutility Sservices shall be in the charge of
athe Utilities Executive Director who shall be directly responsible to the City Manager or his or
her designee for the functions and duties of Uutility Sservices, including, without limitation, the
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functions and duties necessary to provide for the design, construction, reconstruction, addition,
repair, replacement, operation and maintenance of the City's electric, water, wastewater and
stormwater utilitiesy services, and who shall have control and supervision over such agencies,
service units, departments, divisions, offices or persons assigned by the City Manager.
(c) The City Manager or his or her designee shall have the direct responsibility and authority
to administer and supervise all functions and activities related to the electric utility's provision of
"telecommunication facilities and services," as this term in defined in Section§ 7(f) of Charter
Article XII by the telecommunication services division of the electric utility. In exercising this
authority, the City Manager or his or her designee, including but not limited to a Broadband
Executive Director, may assign to other employees such duties, assignments and functions as he
or she determines necessary for the proper and efficient administration of the telecommunication
services division of the electric utility in providing telecommunication facilities and services.
Section 3. That Section 26-1 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-1. - Definitions.
The following words, terms and phrases, when used in this Chapter, shall have the meanings
ascribed to them in this Section:
. . .
Broadband Executive Director shall mean the executive director of the
telecommunication services division of the electric utility as appointed by the City Manager.
City Manager shall mean the City Manager of the City of Fort Collins or the designated
representative of the City Manager, including but not limited to, the Broadband Executive
Director with respect to telecommunication facilities and services.
Customer shall mean a user of one (1) or more City utilitiesyservices, excluding
telecommunication subscribers, in whose name an account for related charges or other related
financial responsibilities is maintained by the Financial Officer.
Developer or subdivider shall mean any person who plats and improves undeveloped
land for industrial, commercial, residential or mixed use thereby creating a demand for City
utility services.
Director or Utilities Executive Director shall mean the executive director in charge of
utilities services under § 2-504(b).
. . .
Electric utility shall mean those departments of Uutility Sservices which are in charge of
the distribution and sale of electricity and the provision of telecommunication facilities and
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services in the City.responsible for the distribution and sale of electric service operated under the
authority of the Utilities Executive Director pursuant to § 2-504(b).
Electric utility enterprise shall mean the electric utility and the telecommunication
services division of the electric utility designated as a single enterprise of the City under § 26-
392.
. . .
Holiday shall mean the twenty-four (24) hour calendar day for each of the following:
New Year's Day, Martin Luther King, Jr. Day, Memorial Day, July 4th, Labor Day, Veterans’
Day, Thanksgiving Day, and Christmas.
Imminent hazard shall mean the existence of a public nuisance or any other condition or
occurrence that, as determined by the Utilities Executive Director, or with respect to
telecommunication facilities and services the Broadband Executive Director poses a threat to
public health, safety and welfare. This includes, but is not limited to, a condition that:
(1) Poses a threat to any City utility system, including the telecommunication services
system;
(2) Interferes with the provision of utility or telecommunication facilities and services
pursuant to this Chapter; or
(3) Materially interferes with or impairs athe utility's compliance with any
environmental restrictions, regulations or permits applicable to the utility.
Mailing address shall mean the postal address or electronic mail address that has been
provided by thea customer or a telecommunication subscriber to the Utilities Executive Director,
as shown in the records of the Financial Officer, and to which all utility bills and notices to said
customer shall be sent.
Non-telecommunication services shall mean utility services provided by the water,
wastewater, stormwater and electric utilities to a customer, excluding telecommunication
services provided by the telecommunication services and facilities division to a subscriber.
. . .
Payment assistance program shall mean a financial assistance program implemented by
utility servicesthe utilities to provide temporary financial assistance to qualified utility
customers in paying utility service account balances, funded by donations from other City utility
customers, unclaimed funds held by the utilities utility services forfeited to the City under
Division 4 of Article IV of Chapter 23 of the Code, and such other funds as may be made
available for such purposes from time to time. The payment assistance program shall not apply
to telecommunication subscribers unless or until such time as a payment assistance program
specifically for telecommunication subscribers is adopted by Council.
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. . .
Stormwater utility shall mean those departments of Uutility Sservices which are in charge
of the stormwater facilities for the City.
. . .
Telecommunication subscriber shall mean a customer receiving telecommunication
facilities and services from the telecommunication services division in whose name an account
for related charges or other related financial responsibilities is maintained by the Financial
Officer, which telecommunication facilities and services are subject to the provisions of Article
VIII, of this Chapter 26.
Telecommunication facilities and services or telecommunication services shall have the
meaning given to it in Section 7(f) of Charter Article XII.
Telecommunication services division or division shall mean that division of the electric
utility responsible for providing telecommunication facilities and services operated under the
authority of the City Manager pursuant to § 2-502(c).
. . .
Utility bill shall mean the bill or bills issued by the Financial Officer to a utility customer
or a telecommunication subscriber for utility services furnished, charges assessed, adjusted or
negotiated and payments due thereon, late payment fees, penalties and all other sums due to the
City from said customer or telecommunication subscriber.
Utility services shall mean the service area created under § 2-504, including the electric
utility and the telecommunication services division (which collectively comprise the electric
utility enterprise) and the stormwater utility, wastewater utility and water utility (each of which
are separate enterprises).
Wastewater utility shall mean those departments of Uutility Sservices which are in charge
of the collection and treatment of wastewater for the City.
. . .
Water utility shall mean those departments of Uutility Sservices which are in charge of
the production, distribution and sale of water for the City.
Section 4. That Section 26-5 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-5. - Notice requirements generally.
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Unless otherwise specified, whenever notice is required to be given by the provisions of this
Chapter, it shall be to the last known mailing address of the person to be notified at the mailing
address as defined in § 26-1.as shown on the records of the City. Service of such notice shall be
effective upon the date of mailing or transmission of email.
Section 5. That Article VI of Chapter 26 of the Code of the City of Fort Collins is
hereby amended to read as follows:
ARTICLE VI.
ELECTRIC*
Sec. 26-391. Definitions; application.
(a) The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in this Section:
After-hours shall mean those hours between 4:00 p.m. and 8:00 a.m., Monday through
Friday, all day Saturday, Sunday and designated holidays as defined in § 26-1observed by the
City.
. . .
(b) The provisions of this Article VI shall apply only to the distribution and sale of electric
service operated under the authority of the Utilities Executive Director pursuant to § 2-504(b)
and unless expressly stated herein or elsewhere in Chapter 26 or otherwise required by the
context, the provisions of Article VIII related to the provisions of telecommunications facilities
and services under the authority of the City Manager pursuant to § 2-504(c) shall not apply to
the distribution and sale of electric service operated under the authority of the Utilities Executive
Director pursuant to § 2-504(b) by the electric utility.
Sec. 26-392. Electric Uutility and telecommunication services division considered a single
city-owned enterprise.
(a) The electric utility, including the telecommunication services division shall constitute an
single enterprise of the City, to be known as the electric utility enterprise, which may, by
ordinance of the City Council, acting ex officio as the board of such enterprise, issue its own
revenue bonds or other obligations (including refunding securities) on behalf of the City, which
revenue bonds or other obligations shall be payable solely from the net revenues (including
special assessments) derived from the operation of the electric utility enterprise. Such revenue
bonds or other obligations may be additionally secured by mortgages on or security interests in
any real or personal property of the City used in the operation of the electric utility enterprise.
The ordinance issuing any such revenue bonds or approving any such other obligations shall be
adopted in the same manner and shall be subject to referendum to the same extent as ordinances
of the City Council.
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(b) Any pledge of net revenues derived from the operation of the electric utility enterprise
shall be subject to limitations on future pledges thereof contained in any ordinance of the City
Council authorizing the issuance of outstanding bonds or other obligations of the City payable
from the same source or sources. All bonds or other obligations issued or approved by ordinance
of the City Council payable from the net revenues derived from the operation of the electric
utility enterprise and all revenue bonds or other obligations issued by ordinance of the board of
the electric utility enterprise payable solely from the net revenues derived from the operation of
the electric utility enterprise shall be treated as having the same obligor and as being payable in
whole or in part from the same source or sources.
(c) The electric utility enterprise shall also be authorized to have and exercise the following
powers in furtherance of its purposes: to hold meetings concurrently with regular or special
meetings of the City Council; to have and use a seal; to issue its revenue bonds for purposes
related to the electric utility enterprise, including the electrical utility system and the
telecommunication system, in the manner in which City revenue bonds may be issued; to pledge
any revenues of the electric utility enterprise, including the City's electrical utility system and the
telecommunication services division to the payment of such revenue bonds and to pay such
revenue bonds therefrom; to enter into contracts relating to the electrical utility and the
telecommunication services division system in the manner in which City contracts may be
entered into; to make representations, warranties and covenants relating to the electrical utility
and the telecommunication services division system on behalf of the City; to exercise rights and
privileges of the City relating to the electrical utility and the telecommunication services division
system; and to bind the City to perform any obligation relating to the electrical utility and the
telecommunication services division system other than any multiple-fiscal year direct or indirect
debt or other financial obligation of the City without adequate present cash reserves pledged
irrevocably and held for payments in all future years.
(d) All revenues and expenditures of the City or the enterprise relating to the electrical utility
and the telecommunication services division system shall be considered revenues and
expenditures of the electric utility enterprise and shall be accounted for in the light and power
fund as more fully set forth in § 8-77.
(e) The electric utilityenterprise shall annually operate and maintain the City street lighting
system as an additional payment in lieu of franchise fees otherwise to be paid by the enterprise
pursuant to Article V, Section§ 23 of Charter Article V of the City Charter.
. . .
Sec. 26-398. Telecommunication facilities and services.
(a) To the full extent authorized in Section 7 of Charter Article XII, the electric utility is
authorized to acquire, construct, provide, fund and contract as necessary to provide
telecommunication facilities and services in the City, and to take such other actions as may be
necessary for the proper administration of said facilities and services. The City's electric utility
enterprise is also authorized to issue revenue and refunding securities and other debt obligations
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in the manner and to the full extent authorized in Section 7(b) of Charter Article XII and in Code
§ 26-392 to fund the electric utility's provision of telecommunication facilities and services.
(b) The provisions of this § 26-398 shall supersede any contrary or conflicting provisions of
the Code, including, without limitation, provisions of this Chapter 26 specifying the authority,
funding, operation and supervision of the electric utility.
. . .
Section 6. That a new Article VIII entitled “Telecommunication Facilities and
Services” is hereby added to Chapter 26 of the Code of the City of Fort Collins and reads in its as
follows:
ARTICLE VIII
TELECOMMUNICATION FACILITIES AND SERVICES
Sec. 26-570. Purpose and establishment of telecommunication services division.
(a) The purposes of this Article are to:
(1) establish and define the telecommunication services division as a separate and
distinct operational unit of the electric utility and a part of the electric utility enterprise in
accordance with § 7(f) of Charter Article XII;
(2) set forth the respective responsibilities of telecommunication subscribers and
telecommunication services division;
(3) promote the health, safety and welfare of the community in the use and provision
of telecommunication facilities and services;
(4) provide for the equitable distribution among telecommunication subscribers of the
costs of construction, expansion, replacement, maintenance and operation of
telecommunication facilities and services; and
(5) provide for the safe and efficient distribution of telecommunication services to
City residents to the full extent permitted by the City Charter.
(b) A telecommunication services division is hereby established as a part of the City’s
electric utility and electric utility enterprise in accordance with § 7(f) of Charter Article XII, and
as a separate and distinct operational unit of the electric utility and electric utility enterprise.
(c) The telecommunication services system shall consist of and include all facilities,
equipment, wiring, optic fiber, and other property owned and installed or used by the
telecommunication services division to provide telecommunications facilities and services,
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including without limitation, any broadband internet facilities using any technology having the
capacity to transmit data to enable a customer to the service to originate and receive high-quality
voice, data, graphics and video.
Sec. 26-571. Definitions; application
(a) The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in this Section:
After-hours shall mean for the telecommunication services division, the hours and days
included in the terms and conditions of service, rates fees and charges or rules and regulations
adopted pursuant by the City Manager pursuant to this Article VIII.
Business telecommunication service shall mean any telecommunication facilities and
services provided by the telecommunication services division that is not residential
telecommunication service as defined in this Section. Business telecommunication service
includes telecommunication facilities and services to small business and enterprises service.
Residential telecommunication services shall mean telecommunication facilities and
services provided by the telecommunication services division to a dwelling or dwelling unit.
(b) The provisions of this Article VIII shall apply only to the provision of telecommunication
facilities and services under the authority of the City Manager pursuant to § 2-504(c) and unless
expressly stated herein or elsewhere in Chapter 26 or otherwise required by the context, the
provisions of Article VI related to the distribution and sale of electric service operated under the
authority of the Utilities Executive Director pursuant to § 2-504(b) shall not apply to the
provision of telecommunication facilities and services by the telecommunication services
division.
Sec. 26-572. Telecommunication facilities and services.
(a) To the full extent authorized in Section 7 of Charter Article XII, telecommunication
services division of the electric utility is authorized to acquire, construct, provide, fund and
contract as necessary to provide telecommunication facilities and services within and outside the
City, and to take such other actions as may be necessary for the proper administration of said
facilities and services. The City's electric utility enterprise is also authorized to issue revenue and
refunding securities and other debt obligations in the manner and to the full extent authorized in
§ 7(b) of Charter Article XII and in § 26-392 to fund the telecommunication services division’s
provision of telecommunication facilities and services.
(b) The provisions of this § 26-572 shall supersede any contrary or conflicting provisions of
the Code, including, without limitation, provisions of this Chapter 26 specifying the authority,
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funding, operation and supervision of the electric utility.
Sec. 26-573. Determination of rates, fees and charges; budget.
(a) Subject to the conditions set forth in this Section, the City Council has delegated to the
City Manager, in whole, its authority to set rates, fees and charges for furnishing
telecommunication facilities and services to telecommunication subscribers to the full extent
permitted under § 7 of Charter Article XII.
(b) The City Manager shall, from time to time, set such rates, fees and charges for
telecommunication facilities and services at a level at least sufficient to pay the cost of providing
telecommunication facilities and services, to pay the cost of operation and maintenance of
telecommunication services system in good repair and working order; to pay into the general
fund in lieu of taxes such amount as may be established by Council by ordinance; to pay the
principal of and interest on all bonds and other obligations issued or created for the purpose of
providing telecommunication facilities and services and payable from the revenues of the City’s
electric utility enterprise; to provide and maintain adequate working capital funds for the day-to-
day business of the telecommunication services division; to provide and maintain an adequate
fund for the replacement of depreciated and obsolete property; and for the extension,
improvement, enlargement and betterment of the telecommunication services system. Such
rates, fees, and charges may include a charge for damage to or failure to return
telecommunication services equipment such as set top boxes, telephones, optical network
terminals, modems or other moveable personal property leased or otherwise made available to
telecommunication subscribers.
(c) The City Manager shall post telecommunication rates, fees, and charges for residential
telecommunication services determined in accordance with subsection (b) above to be charged
from time to time on the telecommunication services division website. A copy of such rates,
fees, and charges shall be filed with City Clerk and shall be available for public inspection. The
City Manager shall also notify City Council in writing of such rates, fees, and charges no later
than seven (7) days before such rates, fees and charges are posted on the telecommunication
services division website. The schedule of rates, fees and charges adopted by the City Manager
from time to time shall specify the effective date of such rates, fees and charges.
(d) The City Manager may adopt different rates, fees and charges for residential
telecommunication services and business telecommunication services (including small business
and enterprise services) and shall have the discretion to:
(1) determine standard rates, fees and charges for a defined set of small business
services to be offered to business telecommunication subscribers from time to time;
and/or
(2) determine rates, fees and charges for custom business telecommunication
services, which shall be set forth in a services agreement, and to sign such services
agreements on behalf of the telecommunications services division.
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(e) Budgets for the telecommunication services division shall be prepared and adopted by the
City Council at the same time as budgets for all utility services in accordance with § 5 of Charter
Article XII.
Sec. 26-574. Terms and conditions of telecommunication facilities and services; rules and
regulations.
(a) Telecommunication subscribers within and without the corporate limits of the City shall
pay the rates, fees, and charges as adopted by the City Manager from time to time under 26-
573 for residential and business telecommunication services in accordance with such terms and
conditions of service and subject to such general rules and regulations adopted by the City
Manager from time to time. Terms and conditions of service and rules and regulations may
differ for residential and business telecommunication services. Terms and conditions of service
shall include an acceptable use policy for residential telecommunication services and network
management practices followed by the telecommunication services division.
(b) The terms and conditions of service and general rules and regulations adopted by the City
Manager and from time to time shall be posted on the telecommunication services division
website. A copy of such terms and conditions of service and general rules and regulations shall
be filed with City Clerk which shall be available for public inspection. The terms and conditions
of service and general rules and regulations adopted by the City Manager from time to time shall
specify the effective date.
(c) The applicable terms and conditions of service and general rules and regulations shall
govern and control in all respects the rendering of telecommunication facilities and services and
charging and collecting rates, fees and charges for the sale of such services. Such terms and
conditions of service and general rules and regulation may be modified from time to time by the
City Manager.
Sec. 26-575. Obtaining and terminating telecommunication facilities and services.
(a) By requesting and using telecommunication facilities and services, telecommunication
subscribers accept and agree to abide by the applicable terms and conditions of service and rules
and regulations established pursuant to § 26-574.
(b) Requests to initiate residential telecommunication services must be made to the
telecommunication services division through an electronic service request portal or by contacting
the telecommunication services division and providing such information as may be required for
the delivery of and payment for telecommunication facilities and services. Requests to initiate
business telecommunication services may also be initiated through an electronic service portal
request, by contacting the telecommunications services division, or as otherwise required by
terms and conditions of service or the rules and regulations applicable to such business services.
(c) The telecommunications services division will make reasonable efforts to initiate service
as soon as possible during normal business hours but makes no representation or warranty as to
the division’s ability to meet a subscriber’s desired initiation date.
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(d) Requests to terminate residential telecommunication services shall be made through an
electronic service request portal and/or by contacting the telecommunication services division.
Requests to terminate business telecommunication services may also be initiated through an
electronic service portal request or by contacting the telecommunication services division, or as
otherwise required by terms and conditions of service or the rules and regulations applicable to
such business services. Telecommunication services division will use reasonable efforts to
terminate service as soon as possible after receiving a termination request (during normal
business hours) but makes no representation or warranty as to its ability to meet a subscriber’s
desired termination date.
(e) A termination request given by a telecommunication subscriber does not relieve the
subscriber from any minimum charges or payments required under applicable terms of service or
rules and regulations.
(f) The telecommunication services division may refuse to provide service or install service
equipment if the person or firm requesting the service or installation currently owes the a
delinquent amount for any utility or telecommunication services previously provided by utilities
services, whether to the same or different premises or if the person or firm requesting the service
or installation owes a delinquent use charge, fee, deposit, assessment or any amount for any
service equipment previously installed.
Sec. 26-576. Payment of rates, fees and charges; other conditions of telecommunication
facilities and services.
(a) Rates, fees and charges due by residential and business telecommunication subscribers
may be billed separately or incorporated into a single utility bill for all utility services. Except as
expressly set forth to the contrary in this Article VIII or in Article XII, billing for
telecommunication services shall be subject to the provisions of Article XII of this Chapter 26
regarding utility accounts, billing and collections.
(b) The telecommunication services division may terminate service, with or without notice
and notwithstanding any provision to the contrary set forth in Article XI of this Chapter 26:
(1) for failure to pay any amounts as and when they become due in accordance with
the applicable terms and conditions of service; or
(2) for failure to comply with all applicable terms and conditions of service, including
the acceptable use policy, the general rules or regulations adopted by the City Manager or
the provisions of this Article.
(c) It shall be unlawful for any person to obtain telecommunication services and facilities
from the telecommunication services division except in accordance with the terms of this Article,
or to re-sell services provided by telecommunication services division unless permitted by
contract or terms and conditions of service.
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(d) The telecommunication services division will use reasonable diligence at all times to
provide continuous service at the speeds and specifications and in accordance with network
management practices set forth in the applicable terms and conditions of service from time to
time, but cannot guarantee and shall not be liable to the telecommunication customer for
complete or partial failure or interruption of service, fluctuations in speed or capacity, or any
direct, indirect or consequential loss, cost or damages of any nature whatsoever.
Telecommunication subscribers are responsible for taking whatever precautions they deem
appropriate to protect against damage or loss due to interruptions of service, fluctuations of
speed or service or operation in accordance with the adopted network management practices.
Sec. 26-577. Inspection; right of access.
(a) The City Manager or his or her designee, including the broadband executive director,
may inspect any portion of the telecommunication services system and any equipment and
facilities of any telecommunication subscriber at any reasonable time to ascertain compliance
with applicable ordinances, terms and conditions of service and rules and regulations. Persons or
occupants of premises receiving telecommunication facilities and services shall allow
telecommunication services personnel ready access to the premises, including the interior
thereof, for the purposes of such inspection and performance of any of their duties and any such
persons or occupants shall, by granting such access, represent and warrant to the City and the
telecommunication services division that they have the legal right and authority to grant that
access. The telecommunication services division shall have the right to set up on the subscriber’s
property such devices as are necessary to conduct inspection, compliance-monitoring and/or
maintenance operations. Where a telecommunication subscriber has security measures in place
that would require proper identification and clearance before entry into a served premises, the
subscriber shall make the necessary security arrangements so that, upon presentation of suitable
identification, telecommunication utility personnel will be permitted to enter without delay for
the purposes of performing specific responsibilities. While performing necessary work on private
property, telecommunication services division personnel shall observe all security and safety
rules applicable to the premises as established by the telecommunication subscriber.
(b) If a duly authorized representative of the telecommunication services division is refused
admission to a subscriber’s premises, or any City owned facilities, including communications
modules and equipment, the City Manager or his or her designee, including the broadband
executive director, may discontinue telecommunication services until telecommunication
services division representatives are afforded access to the premises and the telecommunication
facilities and equipment located thereon to accomplish inspection and/or monitoring.
Sec.26-578. Property owner's consent for service; indemnity to City.
(a) Telecommunication facilities and services provided pursuant to the terms of this Article
shall be deemed to be provided at the request and with the consent of the owner of the real
property to which service is provided, unless and until telecommunication services division
receives written notice of said owner's withdrawal of such consent. Any persons or occupants of
that real property shall, by granting access, represent and warrant to the City and the
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telecommunication services division that they have the legal right and authority to grant such
access
(b) The City shall not be responsible for any injury to persons or damage to property
occasioned or caused by the acts, omissions or negligence of the telecommunication subscriber
or of any of the subscriber’s agents, employees or licensees, in installing, maintaining, operating
or using any of the telecommunication subscriber’s lines, wire, equipment, machinery or
apparatus, and for injury and damage caused by defects in the same.
(c) The telecommunication subscriber shall hold the City harmless and indemnify it against
any and all claims and liability for injury to persons or damage to property when such injury or
damage results from or is occasioned by the telecommunication facilities and equipment located
on the subscriber’s side of the point of delivery unless caused by the acts, omissions, or
negligence of the City's agents or employees.
(d) The telecommunication subscriber shall pay all costs that may be incurred by the City in
enforcing this indemnity.
Sec. 26-579. Violations and penalties.
(a) It is unlawful for any person to tamper with, molest or damage in any manner any
property, equipment, appliance or appurtenance constituting a part of telecommunication
services system or for any person to trespass upon the property of the City or interfere in any
manner with the operations of the telecommunication services system. Any expense caused to
the City for the repair or replacement of damaged, stolen, tampered with or misused
telecommunication facilities or equipment shall be charged against and collected from the person
who caused the expense
(b) Any person receiving services from the telecommunication services division agrees to
and shall abide by all provisions of this Code and all the effective terms and conditions of
service, including any acceptable use policy, general rules and regulations and policies and
procedures adopted pursuant to § 26-574.
(c) The failure of any telecommunication subscriber to comply with any provision of this
Code or any rule, regulation or policy issued thereunder (including terms and conditions of
service, acceptable use policy and general rules and regulations and policies and procedures of
the City, as they may exist from time to time), is a violation of this Code and, upon conviction,
is punishable as provided in § 1-15. The violator may also be subject to any other penalties or
liability provided by this Chapter, including the disconnection or discontinuance of any utility
services until compliance is achieved.
Sec. 26-580. Records; privacy.
(a) Records of the telecommunication services division and its telecommunication
subscribers shall be subject to the provisions of § 26-23 and § 26-26 relating to utility records,
except as expressly set forth in this Article.
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(b) Notwithstanding the provisions of subsection (a) above, to the extent that the provisions
of § 26-23 or § 26-26 conflict with state or federal law applicable to telecommunication facilities
and services, such federal or state law shall apply.
(c) Notwithstanding the provisions of subsection (a) above, § 26-26(2) shall not apply to the
records of the telecommunication services division or its telecommunication subscribers.
Sec. 26-581. Administrative appeal procedure.
(a) Any telecommunication subscriber who believes that he or she has been aggrieved by a
final determination or decision regarding the application of the requirements of this Article VIII
or any terms and conditions of service or rules or regulations authorized under this Article may
petition the City Manager for a hearing, provided that the aggrieved party makes written
application for such hearing within seven (7) days of the date of such final determination or
decision.. The City Manager shall appoint a hearing officer if the complaint involves a final
determination or decision by the City Manager. If the complaint involves a final determination
or decision by the broadband executive director, the City Manager may either conduct the
hearing or appoint a hearing officer, in his or her discretion. If a timely request for hearing is
made, a hearing concerning the propriety of the final determination or decision shall be granted
to the aggrieved party and, after notice to the aggrieved party, the hearing shall be held within a
reasonable time after the filing of the request for hearing. At the hearing, the appellant and the
City may be represented by an attorney, may present evidence and may cross-examine witnesses.
A verbatim transcript of the hearing shall be made.
(b) The decision of the hearing officer or City Manager shall be based upon competent
evidence presented at the hearing and shall be a final decision.
Sec. 26-582. Net neutrality; network management.
(a) The telecommunication services division will treat all data on the internet equally, and
not discriminate or charge differently by individual user, content, website, platform, application,
type of attached equipment, or method of communication and will not intentionally block, slow
down or charge money for specific websites and online content.
(b) The terms and conditions of service shall include the telecommunication services
division’s network management practices as promulgated by the City Manager from time to
time, which set forth the practices and policies used by the telecommunication services division
to manage and transmit network traffic. The telecommunication services division shall comply
with any FCC standards requiring notice of such network management practices to
telecommunications subscribers.
Sec. 26-583. PILOT; franchise; revenues.
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(a) In addition to the rates, fees and charges for telecommunication facilities and services set
forth in § 26-573 above, the telecommunication services division shall charge telecommunication
subscribers for payments in lieu of taxes. The charge shall be six and zero-tenths (6.0) percent of
the monthly rates, fees and charges billed for all telecommunication services pursuant to said §
26-575 inclusive of the franchise fees paid to the City for video sales pursuant to subsection (b)
below, which amounts shall be transferred to the City general fund.
(b) The telecommunication services division is hereby granted a franchise to construct,
install and maintain telecommunication facilities for the purpose of providing telecommunication
facilities and services over, under, across and on City rights-of-way and electric utility
easements, provided that:
(1) The franchise granted hereunder is subject to all requirements of the Charter;
(2) The telecommunication services division shall pay to the City a franchise fee in
an amount equal to five (5) percent of its gross annual revenues from video sales
components of telecommunications facilities and services; and
(3) The telecommunication services division shall pay and provide to the City, and
may charge and collect from telecommunication subscribers such additional fees as may
be required by the City of other multi-channel video programming service providers
under a franchise agreement from time to time.
(4) The City Manager may require that the telecommunication services division
provide such other benefits and payments to the City from time to time as may be
required of other multi-channel video programming service providers under a franchise
agreement in order to address competitive equity or similar provisions in such a franchise
agreement.
(c) Revenues and expenses of the telecommunication services division shall be accounted for
as a component of the light and power fund, in accordance with §28 of Charter Article V.
Section 7. That Article XII of Chapter 26 of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-711. Definitions; application.
(a) The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in § 26-1 and this Section:
Financial Officer shall mean the head of the Financial Administration Unit or the
designated representative of the Financial Officer.
(b) The provisions of this Article XII shall apply to customers of the electric, stormwater,
water and wastewater utilities (defined as “customers” in § 26-1 to exclude “telecommunication
subscribers”) and to customers of the telecommunication services division (defined as
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“telecommunication subscribers” in § 26-1) unless expressly stated herein or otherwise required
by the context of the provisions of this Article XII.
Sec. 26-712. - Utility bill and account charges authorized; procedures.
(a) The fees and charges established by this Code for services from the electric, stormwater,
water and wastewater utilities may be billed together in one (1) utility bill with such fees and
charges separately itemized, and shall be billed to utility users not less than once each month.
Service fees and charges for telecommunication facilities and services may be billed separately
or included on a combined utility bill with other utility services, and such amounts shall be
itemized separately and be payable in addition to all combined utility fees and charges. The
Financial Officer shall collect, receive and disburse all such fees and charges for the separate
utility funds in accordance with the Charter and related provisions of this Code.
(b) The following account and miscellaneous fees and charges shall apply to all City utility
customers receiving electric, stormwater, water and wastewater service (but not
telecommunication facilities and services) pursuant to the terms of Chapter 26, whether within or
outside of the corporate limits of the City, except as otherwise expressly stated:
. . .
Other miscellaneous charges for electric, stormwater, water and wastewater service will be based
on direct cost plus fifteen (15) percent indirect costs.
(c) All utility services are presumed to be furnished and supplied to the real property served
without regard to the actual user or person billed for the services, except for telecommunication
utility services. Therefore, all utility fees and charges other than fees and charges for
telecommunication facilities and services are chargeable against and payable by the owner of
such real property, as well as the person contracting for the utility service.
. . .
Sec. 26-713. - Due date; delinquency.
(a) All fees and charges for the use of utility services are due and payable in full as of the
due date specified on the utility bill and become delinquent after that date. Acceptance of partial
payment will not be deemed a waiver of the City's right to collect any remaining balance or to
exercise any of its authorized remedies for nonpayment. Prior to service disconnection,
customers may make arrangements for payment with the approval of the Utilities Executive
Director, and as otherwise provided in the administrative rules and regulations adopted by the
Financial Officer pursuant to § 26-720 and/or the City Manager pursuant to § 2-504 for all
telecommunication facilities and services.
(b) All charges and fees on utility bills shall be effective as of the date mailed to the last
known mailing address of the customeror sent electronically to the current electronic mail
address of the customer or telecommunications subscriber.
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(c) In case the user of any utility fails to pay a utility bill by the due date or fails to pay any
other utility fee, charge, deposit or assessment prescribed by this Code, the City may disconnect
either or both of the user's water and electric services to the property and has the right to enter
upon private property to accomplish this purpose.
(d) Before discontinuing a utility service for nonpayment of any utility use charge, fee,
deposit or assessment prescribed by this Code for electric, water, or wastewater services, the City
shall give written notice (transmitted physically or electronically) to the user of the delinquency
and the intent to terminate service, unless notice has been waived in writing by prior agreement
concerning payment of the delinquent amounts. If the electric, water, or wastewater user files a
written request with the utility Financial Officer prior to the termination date set forth in the
notice, the utility Financial Officer shall schedule a protest hearing before a City hearing officer
on any disputed matter relative to the proposed discontinuance of utility service. The user may
appeal an unfavorable decision to the Financial Officer whose decision is final as provided in
this Chapter.
(e) The terminated utility service will be restored after the customer has paid in full all
delinquent fees and charges, plus collection costs, together with the expenses of discontinuing
and restoring service, including costs of after-hours labor and materials and specified fees, as
provided in this Article.
(f) Each utility and the telecommunication services division Utilities may refuse to provide
service or install service equipment if the person or firm requesting the service or installation of
service equipment currently owes the utilities a delinquent amount for any utility services
previously provided, whether to the same or different premises or if the person or firm requesting
the service or installation of service equipment owes the utilities a delinquent utility use charge,
fee, deposit, assessment or any amount for utility service equipment previously installed.
(g) If any utilitythe utilities refuses to provide service or install service equipment as specified
herein, the person or firm requesting such service shall be provided a written refusal of service
notice by the utilities as to the reason for the refusal and the delinquent amount that must be paid
before the utilities shall fulfill the request.
(h) Notwithstanding (f) above, if any person or firm disputes the amount owed, such person
or firm may receive service as requested after depositing with the utilities the full amount
requested, to be held by the utilities, for a period not to exceed thirty (30) days, pending final
determination by the Utilities Executive Director or City Manager of the amount owed by the
requesting person or firm. Such person or firm shall submit, within fifteen (15) days after the
date on the refusal of service notice, a written statement as to the disputed amount (refusal of
service reply), and the Utilities Executive Director or City Manager shall make his or her final
determination within fifteen (15) days after receiving such refusal of service reply. The City
Manager may adopt administrative policies authorizing waiver or adjustment of disputed fees for
telecommunication facilities and services, provided the City Manager determines and finds that
such waiver or adjustment does not prevent the telecommunication services division from
collecting the cost to deliver telecommunication services.
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Sec. 26-714. - Contributions may be passed on to consumer.
A contribution to the general fund by the City's utilities pursuant to the Charter in lieu of taxes
and franchise fees that would be paid by a private utility may be passed on to the user of any
utility or telecommunications facilities and services. Such contributions may include required
franchise payments for video program sales and delivery services.
. . .
Sec. 26-716. - Budget billing.
Single-family residential users meeting the criteria of the budget billing program may request
that the Financial Officer estimate their average monthly non-telecommunication services utility
charges based upon the customer's historic use of utility services and bill the customer
accordingly. The monthly budget billing amount may be adjusted by the Financial Officer to
reflect changes in utility rates or changes in customer usage. The Financial Officer, may
discontinue budget billing for any customer upon a determination that customer usage patterns or
customer payment history for a particular customer indicates that the use of budget billing is not
practicable.
Sec. 26-717. - Rebates.
Eligible low-income elderly and disabled residents of the City may obtain a rebate on account of
their utility bills for electric, stormwater, water and wastewater service (but not
telecommunication services) as provided in § 26-611, et seq.
Sec. 26-718. - Unpaid charges a lien.
(a) Any non-telecommunication services charges imposed by this Chapter for utility
services, together with interest and the collection costs, if not paid by the due date specified on
the utility bill, constitute a perpetual lien on the property to which service was delivered.
. . .
Sec. 26-719. - Service initiation and termination at user's request.
(a) Requests to initiate any non-telecommunication utility services must be made to the
utilities at least one (1) business day prior to the customer's desired initiation date, and additional
notice may be required to ensure services are available. Requests are managed as soon as
possible during normal business hours and may incur additional fees and charges, as set forth in
Section § 26-712 of this Code.
. . .
Sec. 26-720. - Administrative rules and regulations.
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(a) The Financial Officer shall formulate and promulgate rules and regulations for the
administration of this Article, not inconsistent with the provisions of this Article with respect to
the billing and collection of utility fees and charges, credit and lending standards and rates and
administrative practices for utility loan programs, which shall include, but not be limited to,
efficiency-related conditions on loans for renewable energy development; extension of utility
loans of up to twenty (20) years in total term length, at the option of the borrower, not to exceed
the useful life of the funded improvements; and other matters relating to the administration of
customer accounts. Said rules and regulations may regulate without limitation, the forms and
procedures for giving notice to customers; policies for adjusting billed amounts as necessary to
correct errors or for administrative efficiency or to achieve equity; procedures for appeals; and
procedures for the documentation of liens. Any rules or regulations promulgated by the Financial
Officer hereunder shall be effective upon the Financial Officer's filing of the same with the City
Clerk. The City Manager may further formulate and promulgate rules and regulations that differ
from those adopted by the Financial Officer for the administration of telecommunication
facilities and services, which shall be effective upon the filing of the same with the City Clerk.
. . .
Sec. 26-722. Utility payment assistance program; purpose; funding; qualifications for
assistance.
(a) The Utility Payment Assistance Program, is hereby formally established for the purpose of
providing temporary financial assistance to qualified utility customers in paying past-due non-
telecommunication services utility bills. For purposes of this Section, "past-due" shall mean a
utility bill that has not been paid by the customer within twenty-three (23) days after the printing
of such utility bill.
. . .
(c) Balances in the Utilities Payment Assistance Program account may be used only to pay all
or a portion of the monthly non-telecommunication servicesutility bill of qualified electric and
water utility customers, and only consistent with the following conditions:
. . .
Sec. 26-723. - Leased property owners.
(a) Owners of rental property served by City utilities are required to select the preferred
manner for administering utility services to the rental property during tenant vacancies.
(b) Service options include:
(1) Leave utilities on: This option automatically transfers account responsibility into
the property owner's name when a tenant discontinues service. A fee under Section 26-
712 of this Code will be assessed to the property owner each time the services revert to
the property owner. This option will not prevent discontinuance of service due to any
delinquency. This option is not available with respect to telecommunication facilities and
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services, which are billed to and the responsibility of the telecommunication subscriber
and not the property owner if different than the subscriber.
(2) Turn utilities off: This option discontinues metered utilities at the property when a
tenant discontinues service. A service connection fee under Section § 26-712 of this Code
will be assessed to the new service address account when services are reinstated. This
option is automatically applied to telecommunication facilities and services.
Sec. 26-724. - Residential income-qualified assistance program.
(a) Purpose. To benefit ratepayers of the affected Utilities by enabling residents with
household incomes below a certain level to commit a reasonable level of household income to
monthly non-telecommunication services utility bills and in doing so, achieve greater
conservation and efficiency improvements and consumption behaviors in qualified program
households.
. . .
Introduced, considered favorably on first reading, and ordered published this 2nd day of
July, A.D. 2019, and to be presented for final passage on the 16th day of July, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 16th day of July, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 091, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE PURCHASING AGENT TO ENTER INTO LICENSING
CONTRACTS WITH A TERM LENGTH IN EXCESS OF FIVE YEARS FOR THE
ACQUISITION OF VIDEO CONTENT RIGHTS IN FURTHERANCE OF FORT COLLINS
CONNEXION’S DELIVERY OF TELECOMMUNICATION SERVICES
WHEREAS, City Council, acting ex officio as the Board of the Electric Utility Enterprise
(the “Enterprise”), will on this date consider Ordinance No. 006 (the “Enterprise Ordinance”) to
approve long-term ( up to 7 years) licensing contracts for rights to deliver cable or other
subscriber video content, programming, and streaming services from local channels, individual
channels and channel families, and video content aggregators, all as set forth therein (the
“Authorized Obligations”) and authorize the City’s Purchasing Agent to sign the Authorized
Obligations; and
WHEREAS, the Enterprise Ordinance is necessary as a result of the unique and limited
nature of the video content licensing market, which involves proprietary content, restrictions
imposed by video content developers, and standardized licensing periods and contract
provisions, requiring unique contracting terms to obtain necessary video content for the
Telecommunication Facilities and Services division (known as Fort Collins Connexion) of the
City’s Electric Utility and a part of the Enterprise, to provide video services to subscribers; and
WHEREAS, City Code Section 8-186(a) states that no contract for services or
professional services, including all renewals, shall be made by the City for a period longer than
five years, unless authorized by ordinance, which ordinance shall not be passed as an emergency
ordinance; and
WHEREAS, it is in the best interest of the City and the citizens of Fort Collins,
including ratepayers of the Enterprise, that the Purchasing Agent be authorized to enter into
Authorized Obligations for terms in excess of five years to enable Connexion to secure the video
content necessary to meet market demand for and contribute to successful deliver of its
telecommunication services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the Purchasing Agent is hereby authorized to enter into the
Authorized Obligations as defined in the Enterprise Ordinance for rights to deliver cable or other
subscriber video content, programming, and streaming services from local channels, individual
channels and channel families, and video content aggregators for terms not to exceed 7 years.
-2-
Section 3. That the authorization set forth in this Ordinance is expressly conditioned
upon approval of the Enterprise Ordinance by the Board of the Electric Utility Enterprise.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
July, A.D. 2019, and to be presented for final passage on the 16th day of July, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 16th day of July, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk