HomeMy WebLinkAbout1992 Ordinance No. 037ORDINANC E NO . 32
SERIES OF 1992
BY AUTHOR!
COUNCIL BILL NO . 33
INTRODUCED BY COUNCIL
MEMBER HATHAWAY
AN ORDINANCE REQUIRING FRANCHISEE TO PAY THE COSTS INCURRED BY TH E
CITY O.' ENGLEWOOD, COLORADO, IN FRANCHISE NEGOTIATIONS .
WHEREAS , the City is empowered to grant frar.chise 1 to entitie1 which pn>poN to utilize
Ci ty rights -of-way for their private benefit; and
10 a
WHEREAS, the negotiations of the terma and condition ■ of 1uch franchise agNement.s are
co mplicated and frequently require a11i1tance from out.aide c •naullanla; and
WHEREAS, such negotiations constitute a co1t to the City; and
WHEREAS, the costs incurred in 1uch negotiations by the City are a direct rHult of the
desire of the franchisee to utilize in a permanent manner the lltreeta of the City for its ben efit ;
and
WHEREAS , the City is empowered to req•lire applicants for franchise privilei:,,1 to
rei mburse and bold the City harmleu from the co1t■ uaocialed with the application
pr oce dure; and
WHEREAS, 1uch franchi ■e negotiation co st.s are difficult to predict 1ince franchise
negotiati ons are infrequent and may involve the resolution of vastly different iuues,
depending upon the nature of '.'.,e franchise aoughl;
NOW , THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
~-During franchi se negotiations the City shall maintain an account of all
ex penses in curred, including, but not limited to , 1taff co •ts, expert con1ulting fee ■, legal fe,,s
and expense s.
~ The City shall mail by certified mail , return receipt requested, to the franchisee
an accounting of all co 1ts thus incurred du ring fran chise negotiation ■ within thirty (30)
days after the adoption of the franchise ordinance. Such accounting will itemize all co1ts
inc urred by the City, including, but n ot limited to , City staff expenses, including overtime,
expert con sul ting fe es, legal fees a nd related expen se s.
5J:cl.ilm..a. Th e franchi see shall pay to the City all such costs incurred within thirty days of
mailing of the accounting. Failure to pay sh a ll con stitute a material breech of the terms of
the franch ise , unless the franch isee prote,:s the reasonabl eness of the coats in the manner sel
forth wi!.h in this ordinance.
SJ:.i:1i.gn._j. If t he franch isee dis putes the reasonablenes s of the charges, it may seek review
of th e assessment by fil ing a prolesl wi th the City Counci l wi thin thirty (3 0) days of the
mailing of th e accounting staleme nL If such a protest i s fil ed, th e City Manager, or h is
des ignee, sh all appea r be for e a City st.aff me mber speci fi ca ll y design ated to h ear this matter
by the Ci ty Council al a date specified . The franch isee sh all be notified of thi s h earin g date
by certified mail, r eturn receipt requested. Al th is h earing th e franch isee may present
evi dence regarding the reaBO nah;e ness of th e charges . The franchi see ,hall bear the bur den
of proo f. Th e City Manager or hi s d esign ee may re,pond to any allegations of
unrea11onablene1111 .
S£dilm.lj. Said hearing shall be for the purpo se of hearing prot.e oi.s as to the reasonableness
of th e expenoes incurred. The hearing officer is not authorized to challenge the prerogative
of the City in incurring U,e expenses .
5.r:wlw..li. At the hearing de ■ignated for this purpose, evidence may be received in the form
of documents, exhibits and witnesses. The hearing officer ,hall have all pow ers necessary
to ens ure the fair and efficient conduct of the hearing, but ■hall not be bound by the Coksado
Rul e, of Evidence. The hearing shall be open to the public.
~ The hearing officer may recommend approval of the charge, or malte
alteration , baaed upon the evidence preaented . The City Council , at ito next regul3rly•
scheduled meeting, shall either approve or reject the recommendation of the hearing officer.
Any action of the City Council i1 final and payment muot be made within 1even (7) day■.
Nonpayment will con1titute a material breach of the term s of the franchise .
StdiwlJ!. ~'/ entity che]Jenr,ng t \ , alldity, legality or con1tltutlonality afthl1
ordinance, if •u~ceuful, wi ll reimburse the City for all co1ta incurred, including attome:,s
fees, in such litigation .
&l:tismJ!, If any portion nf \, 1 ,·d lnance i1 held to be invalid for any reuon, the
remaining r •ctions will be e\· ., ·, • 4m d enforceal:le.
Introduced, read in full, and p,.-ieed on flnt reading on the 8th day of September, 1992.
Published a1 a Bill fo r an Ordinanoe on the 10th day of September, 1992.
Read by title and pao ed on fin al readin on the 211t day of September, 1992.
Publi1hed by title aa Ordinance No!:{j, Serie• of 1992, on the 24th day of SeptP.mber,
1992. ·
ATTEST :
t4~«.JAL _O~ (;J
Patricia H . Crow, City Clerk
I, Patricia H. Crow, City Clerk of the City ofEnglewood , Colorado , hereby certify that th e
above and foregoing is e t'1'A copy of the Ordinance pa ssed on final reading and publiohed
by title as Ordinance No . 2./, Series of 1992.
) . . .,,y· /;
' ':(l2t..f..C.! __ M,,:'.' __ j,..j (. ( t r--
Pabicia H. Crow •
. 2·
COUNCIL COMMUNICATION
Date
September 8. 1992
INITIATED BY
Agtnda Item
11 e
City Manager's Ofilce
Subject Repayment of
Franchlse Renewal
Costs
STAFF SOURCE Chuck Reid , Assistant City Manager
ISSUE/ACTION PROPOSED
Staff seeks City Council's support on a bill for an ordinance approvtng repayment of
the costs associated with franchlse renewal processe5-.
PREVIOUS COUNCIL ACTION
None.
BACKGROUND
In tl1e past. franchlsees have r eimbursed the City for t11e costs associated with
franchlse renewal processes. This proposed ordinance simply strengthens the City's
ability for reimbursement of tt..ls stg:illlcant cost.
STAFF ANALYSIS
Franchise rene"''llls are costly In terms of staff time and consulting services .
Altl1ough tll~ franchlse do es provide a long term re ve nue stream, tlle tnltlal start-up
costs to d es ign a franchlse agreement are slgnlflcant and clearly. the franchlsee
benefits from tlle agreeme nt.
FINANCIAL
Dependent upon franchlse renewal process.
BY AlJ'rH RITY
ORDINANCE NO ._
SERIES OF 1992
COUNCIL BILL NO . 33
INTRODU~ COUNCIL
MEMBER di ,fh '"1" 'J ABlLLFOR
AN ORDINANCE REQmRli,, 1 r'RANCHISEE T0 PAY THE COSTS INCURRED BY T. '.E
CITY OF ENG.LEWOOD, COI.O RADO, IN FRANCHISE NEGOTIATIONS.
WHE.REAS, tJ1e City is tnlpo.,ered t.o grant franchi1 .. t.o entities whieh propose t.o utilize
City righta-of-way for tJ1ei, private benefit; and
WHEREAS, the negoti1tions of the terms and conditions of such franchise agreements are
complicated and frequenUy requ.ir! &Jili atance from outside con ■ultantl ; and
WHEREAS, such negotiation, constitute a cost t.o the City; and
WHEREAS, the costs inc11.tr1,d in s11ch negotiations by the City are a dir..ct result of the
dl!sire of the franchisee to utili·:.e in a permauent manner the streeta of the City for ita benefit;
and
WHEREAS, the City is empowered t.o require applicants for franchiae privilei:es t.o
reimbune and hold the City hannleH from the coils auociated ,rith th• application
procedure; and
WHEREAS, such franchise negotiation co1t,& :.re difficult t.o i,redict. 1ince franchiae
negotiations are infrequent and may involve the resolution of v.,.tly diff'enmt iHues,
depending upon the nature of tb s franchise aought;
NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
~-During fr'anchise negotiations the City shLII maintain an account of all
expenses incurred, including, but not limilt.d tu, staff coats, expert consulting fees, legal fees
and expenses .
~ The City shall mail by •ertified mail , return receipt. requested, t.o the franchisee
an accountihg of all costs thus incurred during franchise negotiations within thirty (30)
days after the adoption of the franchise ordinance. Such accounting will itemize all costs
incurred by the City, including, but not limited t.o , City staff espense1, including overtime,
expert consulting fee s , legal fee s and releted expenses.
Swi.,.i...a., The franchisee shall pay to the City all such costs incurred within thirty days of
mailing of the accounting. Failure t.o pay shall constitute a material breach of the terms of
the franchise , unle,s the franchisee protesta the reasonableneH of the costs in the manner set
forth v..rithin this ordinance .
~ If the franchis ee di s putes the reasonableness of the charges , it may seek review
of the as se ssm ent by filing a protest with the City Council within thirty (30) daya of the
mailing of the accounting statement. If such a protest is filed, \he City l 4anager, or his
de signee, shall appear before a City 1taff' member specifically designated to hear this matter
by the City Council at a date specified. The franchisee shall be notified of this hearing date
by ce rtifie d mail , r eturn r ecei pt requ ested. At th is hearing th e fr anchi see may present