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HomeMy WebLinkAbout009 - 02/04/1997 - SUBMITTING CHARTER AMENDMENT NO. 2 TO THE APRIL 8, 1997 ELECTION ORDINANCE NO. 9, 1997 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING PROPOSED AMENDMENTS TO ARTICLE XII OF THE CITY CHARTER, PERTAINING TO MUNICIPAL PUBLIC UTILITIES, TO THE VOTE OF THE REGISTERED ELECTORS OF THE. CITY OF FORT COLLINS WHEREAS,Article IV, Section 8 of the Charter of the City of Fort Collins provides that the Charter may be amended as provided by the laws of the State of Colorado; and WHEREAS, Section 31-2-210, C.R.S., provides that Charter amendments may be initiated by the adoption of an ordinance by the Council submitting a proposed amendment to a vote of the registered electors of the City of Fort Collins; and WHEREAS, on November 21, 1995, the City Council adopted Resolution 95-161 creating a Charter Review Committee (the "Committee") and authorizing the Committee to undertake a comprehensive review of the City Charter and to recommend any amendments thereto that the Committee believed to be in the best interests of the City; and WHEREAS, after conducting such review, the Committee has recommended several such proposed amendments, including various amendments to Article XII of the City Charter pertaining to municipal public utilities; and WHEREAS,the City Council believes that the foregoing proposed amendments, as modified by the City Council, should be submitted to the registered electors of the City so that the voters may determine whether such amendments are in the best interests of the City. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the following proposed changes to Article XII, Sections 1, 4, 5, and 6 of the City Charter shall be submitted to the registered voters of the City as "Proposed Charter Amendment No. 2" at the next regular municipal election to be held on April 8, 1997: ARTICLE XII. MUNICIPAL PUBLIC UTILITIES Section 1. City may acquire utilities; ancillary services. (a) The Council shall have the power within or beyond the territorial limits of the city to construct, condemn, purchase, acquire, lease and operate water, gas, electric, wastewater and/or stormwater utility facilities, transportation systems, telecommunications systems, , and other public utilities , in whole or in part, and everything required therefor, for the use of the city and/or its utility customers. (b) Public utilities owned by the City may provide, in addition to their principal utility services, such ancillary services as may, in the judgment of the City Manager, be beneficial to the ratepayers; provided, however, that if the revenues derived from any such ancillary service exceed, in any fiscal year, five percent (5%) of the gross revenues of the utility providing such service, the ongoing provision of such ancillary service must be approved by the City Council by ordinance within six (6) months after the end of said fiscal year. The rates, fees or charges for such ancillary services shall be established by the City Manager. in such amounts as may provide a reasonable return to the utility. (c) public utilities acquired by the city, except waterworks and transportation systems, shall not be paid for out of general taxes or general obligation bonds,but shall be paid for from revenue derived from the public utility. Equipment necessary for transportation system may be acquired from the funds of the equipment fund of the city. Section 4. Control of water. The use of water belonging to the city,or the use of its water system,whether for domestic or industrial use, or for use in connection with a franchise or other privilege granted by the city, shall always be subject to the most comprehensive scrutiny, management, and control by the city to ensure the successful operation of the waterworks and the proper performance of the trust for the people under which such waterworks and water rights are held by the city. When used by consumers, whether by lease or otherwise, such use shall not confer any vested right and shall be subject to such interruption as may be necessary, in the judgment of the City Manager, to protect the interests of the city. Section 5. Rental of raw water. If the City Manager determines at any time that the city's supply of raw water is greater than that needed by the city to supply treated water to its water utility customers and to satisfy its own direct needs for raw water, then the City Manager may rent any such additional raw water to consumers at rates that reflect competitive market prices, supply and demand conditions, and costs to the city. Section 6. Municipal utility rates and finances. The Council shall by ordinance from time to time fix,establish,maintain, and provide for the collection of such rates, fees, or charges for treated water,wastewater, stormwater and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the city's utilities in good repair and working order; to pay into the general fund in lieu of taxes and franchise fees on account of the city-owned utilities such amount as may be established by the Council by ordinance; 2 to pay the principal of and interest on all bonds of the city payable from the revenues of the city's utilities; to provide and maintain an adequate working capital fund for the day-to-day business operations of said utilities; to provide and maintain an adequate fund for the replacement of depreciated and obsolete property and for the extension, improvement, enlargement and betterment of said utilities; to pay the interest on and principal of any general obligation bonds issued by the city to extend or improve said utilities. The provisions hereof shall be subject at all times to the performance by the city of all covenants and agreements made by it in connection with the issuance, sale, or delivery of any bonds of the city payable out of the revenues derived from the operation of its utilities, whether such revenue bonds be heretofore or hereafter issued. All net operating revenues of the city's utilities shall be held within the respective utility's fund and may be expended only for renewals, replacements, extraordinary repairs, extensions, improvements, enlargements and betterments to such utility, or other specific utility purpose determined by the Council to be beneficial to the ratepayers of said utilities. Section 2. That the following ballot language is hereby adopted for submitting Proposed Charter Amendment No. 2 to the voters at said election: PROPOSED CHARTER AMENDMENT NO. 2 AMENDMENTS TO ARTICLE XII OF THE CHARTER OF THE.CITY OF FORT COLLINS AUTHORIZING THE CITY COUNCIL, WITHOUT A VOTE OF THE PEOPLE, to CONSTRUCT, CONDEMN, PURCHASE, ACQUIRE, LEASE AND OPERATE UTILITY FACILITIES; AUTHORIZING THE CITY TO PROVIDE, IN ADDITION TO ITS PRINCIPAL UTILITY SERVICES, SUCH ANCILLARY SERVICES AS MAY BE BENEFICIAL TO THE UTILITY RATEPAYERS;AUTHORIZING THE CITY MANAGER TO ESTABLISH THE RATES,CHARGES,OR FEES FOR SUCH ANCILLARY SERVICES; ALLOWING SURPLUS WATER RENTAL RATES TO BE SET BY THE CITY MANAGER, RATHER THAN REQUIRING APPROVAL BY THE CITY COUNCIL, AND PERMITTING THE RENTAL OF RAW WATER TO USERS BOTH INSIDE AND OUTSIDE THE CITY LIMITS, SUBJECT TO SUCH INTERRUPTION IN USE AS MAY BE NECESSARY IN THE JUDGMENT OF THE CITY MANAGER TO PROTECT THE INTERESTS OF THE CITY; SPECIFYING THAT THE COUNCIL SHALL, BY ORDINANCE, FIX THE RATES OR CHARGES FOR TREATED WATER, WASTEWATER, STORMWATER AND ELECTRICITY; SPECIFYING THAT THE REVENUES TO BE PAID INTO THE CITY'S GENERAL FUND BY THE CITY'S UTILITIES MAY BE EQUAL TO THE AMOUNT OF THE FRANCHISE FEES, AS WELL AS THE AMOUNT OF TAXES, THAT WOULD BE PAID BY SUCH UTILITIES IF THEY WERE PRIVATELY OWNED; AND DELETING THE REQUIREMENT THAT THE BUDGETS FOR CITY UTILITIES BE PREPARED AT THE SAME TIME AS THE BUDGETS FOR ALL OTHER CITY FUNCTIONS. YES NO 3 Introduced, considered favorably on first reading, and ordere ublished this 21st day of January, A.D. 1997, and to be presented for final passage on the Atfi day of February,,,A.D. I997. j ATTEST: / --��VI City Clerk Passed and adopted on final reading this 4th day of 1 ,ry,A.D. 1997. ,/ `) Feb� i yor AT EST: / City Clerk 4