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HomeMy WebLinkAbout229 - 12/15/1998 - APPROVING A FRANCHISE AND LICENSE AGREEMENT BETWEEN THE CITY AND PLATTE RIVER POWER AUTHORITY ORDINANCE NO. 229, 1998 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A FRANCHISE AND LICENSE AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND THE PLATTE RIVER POWER AUTHORITY WHEREAS, the City of Fort Collins (hereinafter referred to as "the City") currently owns and operates an electric utility that acquires and distributes electricity to utility customers(hereinafter referred to as "the Electric Utility"); and WHEREAS,Platte River Power Authority (hereinafter referred to as "PRPA")is a separate governmental entity created under State law by intergovernmental agreement between the City,the cities of Longmont and Loveland, and the Town of Estes Park(hereinafter referred to collectively as "the Four Municipalities"); and WHEREAS, PRPA was created by the Four Municipalities for the purposes of generation and transmission of electricity to be sold to the Four Municipalities on a wholesale basis; and WHEREAS, in order to upgrade its operations in the generation and transmission of electricity, PRPA has embarked on a project of linking all of its electrical substations in the City together with its substations in the cities of Loveland and Longmont by a fiber-optic system; and WHEREAS, in constructing its fiber-optic system, PRPA will need to install underground and aboveground a fiber-optic cable(hereinafter referred to as "the Cable") that will be located, in part, within the City's boundaries; and WHEREAS, the Cable contains 144 fiber-optic strands, which strands contain a bandwith capacity that exceeds PRPA's current needs for 12 fiber-optic strands to use in its operations related to the generation and transmission of electricity at wholesale; and WHEREAS,PRPA's Board of Directors has therefore decided to lease as dark fiber to third parties, including to telecommunications carriers, PRPA's excess fiber-optic strands in the Cable; and WHEREAS, to accomplish this it is necessary for PRPA to have the right to locate and maintain the Cable, and any extensions of it, in and on the City's streets and rights-of-way; and WHEREAS, in order to so use such streets and rights-of-way, Section 1 of Article XI of the City's Charter requires PRPA to obtain a franchise from the City; and WHEREAS, PRPA also needs to be able to locate and maintain the Cable, and any extensions of it, in the Electric Utility's facilities and infrastructure (hereinafter referred to as "the Electric Utility Facilities"); and WHEREAS, in order to use the Electric Utility Facilities PRPA must obtain a license from the City; and WHEREAS, there is on file with the Fort Collins City Clerk and in the offices of PRPA, a proposed"Franchise and License Agreement"which contains the terms and conditions between the City and PRPA concerning the City's granting to PRPA of the franchise and license described herein (hereinafter referred to as "the Agreement"); and WHEREAS, the Agreement provides that the City shall grant the franchise and license to PRPA for a term of twenty (20) years; and WHEREAS, on October 22, 1998, PRPA's Board of Directors adopted Resolution 17-98 pursuant to which the Board authorized PRPA to enter into the Agreement; and WHEREAS,Section I of Article XI of the City Charter sets forth certain notice requirements that must be satisfied prior to the Council approving the Agreement; and WHEREAS,PRPA has filed with the City Clerk an affidavit of publication evidencing that such notice requirements have been satisfied; and WHEREAS, the Council has considered the Agreement and after having done so, has determined that approval of the Agreement is in the best interests of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds that the notice requirements of Section 1 of Article XI of the City Charter relating to the granting of a franchise and license have been satisfied with respect to the approval of the Agreement. Section 2. That the Council hereby finds that the granting of the franchise and the license to PRPA under the terms and conditions of the Agreement is in the best interests of the City and its citizens. Section 3. That the Council hereby approves the Agreement. Section 4. That the Mayor is hereby authorized and directed to execute the Agreement on behalf of the City thereby granting to PRPA the franchise and the license as provided in the Agreement. Introduced and considered favorably on first reading and ordered published this 8th day of December, A.D. 1998, and to be presented for final passage on the 15th day of December, A.D. 1998. Mayor ATTEST: City Clerk Passed and adopted on final reading this 15th day of December, A.D. 1998. ayor ATTEST: City Clerk