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HomeMy WebLinkAbout1983-028-02/01/1983-AUTHORIZING THE MAYOR TO TAKE CERTAIN ACTION ON BEHALF OF THE CITY COUNCIL RELATIVE TO BURLINGTON NO RESOLUTION 83- 28 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO TAKE CERTAIN ACTION ON BEHALF OF THE CITY COUNCIL RELATIVE TO BURLINGTON NORTHERN RAILROAD'S PROPOSED RATE TO PLATTE RIVER POWER AUTHORITY FOR THE TRANSPORTING OF COAL TO RAWHIDE ONE WHEREAS, the City of Fort Collins' representatives on the Board of Directors of Platte River Power Authority ( "Platte River") have advised City Council that the Burlington Northern Railroad ("Burlington") owns, operates and controls the only railroad that can transport coal between (1) the Powder River Basin in Wyoming, the source of coal for Platte River' s Rawhide Energy Project Unit One, and ( ii ) the Rawhide Energy Project ("Rawhide One") , and WHEREAS, Rawhide One is a major source of future electric power and energy from which Platte River will supply the needs of the City of Fort Collins and its affiliated municipalities as wholesale customers of Platte River, and the rate Burlington charges to transport coal to Rawhide One will indirectly, but significantly, impact the cost of electric energy supplied to the City of Fort Collins for resale to its residents, busi- nesses and institutions, and WHEREAS, Platte River reports that Burlington represents its proposed rate as not based upon its cost of rail service, but rather upon Platte River' s demand for such rail service, and that the proposed rate therefore reflects what Platte River would probably have to pay for the transport of its coal to Rawhide One by other means, and WHEREAS, the City of Fort Collins is further advised by Platte River that the railroad' s bargaining position is only possible due to the Stag- gers Act of 1980, which effectively deregulated the railroads without continuing adequate protection for shippers of coal who have no other alternative means of coal transportation NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that its Mayor be, and hereby is, authorized and directed I To communicate, on behalf of this Council , its concern for the position Burlington has taken in its proposed rate to Platte River for the hauling of coal to Rawhide One, 2 To support Platte River in its efforts to negotiate a reason- able rate for the transportation of coal to Rawhide, 3 To support Platte River in its efforts to communicate with Colorado' s Congressional delegation to ( i) rectify and amend the Staggers Act so as to protect captive shippers and ( ii) take such additional action as is necessary to secure the lowest reasonable rate for coal transportation to Rawhide, and 4 To provide Platte River' s management with a copy of this resolution for its use in support of the aforementioned objectives Passed and adopted at a regular meeting of the City Council held this 1st day of February, A D 1983 Mayor ATTEST City-Clerk -2-