HomeMy WebLinkAbout060 - 07/20/1993 - ESTABLISHING THE CITYS ELECTRIC UTILITY AS AN ENTERPRISE AND AMENDING CHAPTER 26 OF THE CITY CODE ORDINANCE NO. 60, 1993
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING THE CITY'S ELECTRIC UTILITY AS AN
ENTERPRISE OF THE CITY AND AMENDING
CHAPTER 26 OF THE CITY CODE
WHEREAS, on November 3, 1992, the electors of the State of Colorado
approved the passage of Section 20 of Article X of the Colorado Constitution
("Amendment 1") ; and
WHEREAS, Amendment 1 imposes certain requirements and limitations upon
local governments; and
WHEREAS, according to its terms, the requirements and limitations imposed
by Amendment I do not apply to "enterprises" of the City, that is, City-owned
businesses which are authorized to issue their own revenue bonds and which
receive under ten percent of their annual revenue in grants from all Colorado
state and local governments combined; and
WHEREAS, the City's Electric Utility receives under ten percent of its
annual revenue in grants from all Colorado state and local governments combined;
and
WHEREAS, the Fort Collins City Charter, as amended by the electorate on
April 6, 1993, permits the City Council , by ordinance, to establish any one or
more of its water, wastewater, stormwater or electric utilities as an enterprise
of the City and to authorize any such City-owned enterprise to issue its own
revenue bonds or other obligations payable solely from the net revenues derived
from the operation of such utility; and
WHEREAS, the City Council considers it to be in the best interests of the
City that the City's Electric Utility be established as such an enterprise; and
WHEREAS, the City Council believes that the establishment of the Electric
Utility as an enterprise is consistent with the intent of Amendment 1.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1. That the City Council hereby establishes the City's Electric
Utility as an enterprise of the City which shall hereafter be authorized, by and
through the City Council , sitting as the board of such enterprise, to 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 enterprise.
Section 2. That Section 26-391 of the Code of the City of Fort Collins is
hereby amended so that the definition of "Utility" therein shall read as follows:
Sec. 26-391. Definitions.
utility �s) er�i`strse, as used t; thie ArticlJU
e;; shall mean the
electric utility of the City of Fort Collins, Colorado.
Section 3. That Section 26-392 of the City Code be, and the same hereby
is, amended so as to read in its entirety as follows, with the current Sections
26-392 through 26-396 to be renumbered as Sections 26-393 through 26-397,
respectively:
Sec. 26-392. Utility considered a city-owned enterprise.
(a) The utility shall constitute an enterprise of the city 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 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 enterprise. The ordinance issuing any such revenue
bonds or 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 .
(b) Any pledge of net revenues derived from the operation of the
enterprise shall be subject to limitations on future pledges thereof
contained in any ordinance of the 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
by ordinance of the City Council payable from the net revenues
derived from the operation of the enterprise and all revenue bonds
or other obligations issued by ordinance of the board of the
enterprise payable solely from the net revenues derived from the
operation of the enterprise shall be treated as having the same
obligor and as being payable in whole or in part from the same
source or sources.
Section 4. Nothing herein shall be construed as authorizing the board of
the enterprise to acquire, construct or install or hold title to or dispose of
any City-owned property used in the operation of the enterprise, to impose or
adjust rates, fees, tolls or charges for the use of any such property or for any
service or commodity furnished by the enterprise, to levy special assessments or
to exercise any power reserved to the City Council or other City officials by
this Charter or otherwise (other than the power to issue revenue bonds and other
obligations) .
Section 5. Nothing herein shall be construed as affecting the duties and
functions of the City's Electric Board, as contained in Section 2-233 of the
Code, or as prohibiting the City Council from appointing such other advisory
boards or commissions as the City Council may deem appropriate and delegating to
such boards or commissions the power to recommend policies and procedures
regarding the operation of the enterprise.
Introduced, considered favorably on first reading, and ordered published
this 6th day of July, A.D. 1993, and to be presented for final passage on the
20th day of July, A.D. 1993.
Mayor !T—
A rTEST:
City "Clerk
Passed and adopted on final reading this 20th day of uly;'A.D.
i
r
ATTEST:
(� l'
City Clerk