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Help & SupportArticle VIII: Franchises and Public Utilities
Sec. 108. Franchises granted upon vote.
No franchise shall be granted by the city except upon the vote of the qualified taxpaying electors, and the question of its being granted shall be submitted to such vote upon deposit with the director of finance and record of the expense (to be determined by the director of finance and record) of such submission by the applicant for said franchise.
Sec. 109. No exclusive grants-ordinance in plain terms.
No exclusive franchise shall ever be granted; and no franchise shall be renewed before one year prior to its expiration. No franchise, right, privilege, or license shall be considered as granted by any ordinance except when granted therein in plain and unambiguous terms; and any and every ambiguity therein shall be construed in favor of the city and against the claimant under said ordinance.
Sec. 110. Franchises specify streets.
All franchises or privileges hereafter granted to street or other railroads and to other transportation systems shall plainly specify the particular streets, alleys, avenues, and other public property, or parts thereof, to which they shall apply. All other franchises may be in general terms and apply to the city generally.
Sec. 111. Terms not longer than twenty years-compensation.
No franchise, lease, or right to use the streets or the public places or property of the city shall be granted by the city, except as in this charter provided, for a longer period than twenty years. Every grant of a franchise shall fix the amount and manner of the payment of the compensation to be paid by the grantee for the use of the same, and no other compensation of any kind shall be exacted for such use during the life of the franchise; but this provision shall not exempt the grantee from any lawful taxation upon the grantee's property, nor from any licenses, charges, or impositions not levied on account of such use.*
Sec. 112. Franchises provide for safety, etc.
The grant of every franchise or privilege shall be subject to the right of the city, whether in terms reserved or not, to make all regulations which shall be necessary to secure in the most ample manner the safety, welfare, and accommodation of the public, including among other things the right to pass and enforce ordinances to require proper and adequate extensions of the service of such grant and to protect the public from danger or inconvenience in the operation of any work or business authorized by the grant of the franchise; and the right to make and enforce all such regulations as shall be reasonably necessary to secure adequate, sufficient, and proper service, extensions, and accommodations for the people and insure their comfort and convenience.
Sec. 113. No franchise leased, except.
No franchise granted by the city shall ever be leased, assigned, or otherwise alienated without the express consent of the city, and no dealing with the lessee or assignee on the part of the city to require the performance of any act or payment of any compensation by the lessee or assignee shall be deemed to operate as such consent. No such franchise shall ever be assigned to any foreign corporation.
Sec. 114. No extension or enlargement of franchises, except.
No extension or enlargement of any franchise or grant of rights or powers previously granted to any corporation, person, or association of persons shall be made except in the manner and subject to all the conditions provided for in this article for the making of original grants and franchises; provided, however, that the provisions of this article shall not apply to the granting by ordinance of revocable licenses or privileges for sidetrack or switch privileges to railway companies for the purpose of reaching and affording railway connection and switch privileges to the owners or users of any industrial plant; it being the intention to permit the city to grant such revocable licenses or privileges to railway companies whenever in its judgment the same is expedient, necessary, or advisable and whenever the application for such privileges is accompanied by the assent in writing of the owners of the major part in extent of the front feet of the lots or tracts of land of the block fronting on each side of any street, or parts of a street, over or on which it is desired to lay or construct such sidetracks or switches.
The council may grant a permit at any time, in or upon any street, alley, or public place, provided such permit is revocable by the council at its pleasure at any time, whether such right to revoke be expressly reserved in every permit or not.
Sec. 116. Provision for common use of tracks, poles, etc.
The city, by and through its council, shall have the power to require any corporation holding a franchise from the city to allow the use of its tracks, poles, and wires by any other corporation to which the city shall grant a franchise, upon the payment of a reasonable rental therefor, and any franchise or right which may hereafter be granted to any person or corporation to operate a street railway within the city or its suburbs shall be subject to the condition that the city shall have the right to grant to any other person or corporation desiring to build or operate a street railway or interurban railway within or into the city the right to operate its cars over the tracks of said street railway in so far as may be necessary to enter the city and to reach the section thereof used for business purposes; provided, that the person or corporation desiring to operate its cars over the lines of said street railway shall first agree in writing with the owner thereof to pay it reasonable compensation for the use of its tracks and facilities. And if the person or corporation desiring to use the same cannot agree with said owner of said street railway as to said compensation within sixty days from offering in writing so to do and as to terms and conditions of the use of said tracks and facilities, then the council shall, by resolution, after a fair hearing to the parties concerned, fix the terms and conditions of such use and the compensation to be paid therefor, which award of the council, when so made, shall be binding on and observed by the parties concerned.
Sec. 117. Special privileges to mail carriers, police officers, and firefighters.
(Repealed by Ord. No. 5575 (1993), § 1, adopted by electorate on November 2, 1993.)
Every ordinance granting any franchise shall prohibit the issuing of any stock on account thereof by any corporation holding or doing business under said franchise to an amount in excess of the sum which shall be fixed for said purpose by the council whenever requested so to do by the holder of said franchise. The said sum as fixed by the council shall consist of the following items only, to-wit:
(a) The sum necessarily expended by the grantee of said franchise in obtaining the same from the city; and
(b) The sum which is, in the opinion of the council, reasonably sufficient to compensate said grantee for the time and services given by the grantee in obtaining said franchise.
Any violation of the terms of this section shall at the option of the city operate as a forfeiture of said franchise.*
Sec. 119. Railroad to elevate or lower tracks.
The council shall by ordinance require any railroad company, whether operating by steam, electric, or other motive power, to elevate or lower any of its tracks running over, along, or across any of the streets or alleys of the city, whenever, in the opinion of the council, the public safety or convenience requires.
Sec. 120. City manager to maintain general supervision-reports-inspection.
The city manager shall maintain general supervision over all public utility companies in so far as they are subject to municipal control. The manager shall cause to be instituted such actions or proceedings as may be necessary to prosecute public utility companies for violations of law and may report to the council, recommending the revocation, cancellation, or annulment of all franchises that may have been granted by the city or which have become in whole or in part or which for any reason are illegal or void and not binding upon the city.
The manager shall require every person or corporation operating under a franchise or grant from the city to submit to the council within sixty days after the first day of January of each year an annual report, verified by the oath of the president, the treasurer, or the general manager thereof, showing in detail:
(a) The amount of its authorized capital stock and the amount thereof issued and outstanding.
(b) The amount of its authorized bonded indebtedness and the amount of its bonds and other forms of evidence of indebtedness issued and outstanding.
(c) An itemized statement of its receipts and expenditures for the preceding calendar year.
(d) The amount paid as dividends upon its stock and as interest upon its bonds and other indebtedness.
(e) The amount paid as salaries to its officers and the amount paid as wages to its employees.
(f) A full description of its property and franchises, stating in detail how each franchise claimed was acquired and the book value thereof; and
(g) Such other information as may be required by the council.
Such reports shall be in the form and cover the period prescribed by the council; and the council shall have the power, either in person or by experts or employees duly authorized by it, to examine the books and affairs of any such person, persons, or corporation and to compel the production before it of books and papers pertaining to such reports or other matters.
Any such person, persons, or corporation failing to make any such reports shall be liable to a penalty of $100.00 and an additional penalty of $100.00 for each and every day thereafter during which such person shall fail to file such a report, to be sued for and recovered in any court of competent jurisdiction.
The city manager shall have the power, either personally or through the city's inspectors or employees duly authorized by the council, to enter into or upon and to inspect the buildings, plants, power houses, and all properties of any such person, persons, or corporation and shall inspect the properties of such person, persons, or corporation at least once a year and shall immediately thereafter report to the council a detailed and complete statement of such inspection.*
Sec. 121. Oversight of franchise for use of water reserved to city.
Every franchise, right, or privilege which has been or which may be hereafter granted conveying any right, permission, or privilege to the use of the water belonging to the city or to its water system shall always be subject to the most comprehensive oversight, management, and control in every particular by the city; and the rights of the city to such control for municipal purposes are retained by the city in order that nothing shall ever be done by any grantee or assignee of any such franchise, right, or privilege which shall in any way interfere with the successful operation of the waterworks of the city, or which shall, or which shall tend to, divert, impair, or render the same inadequate for the complete performance of the trust for the people under which such waterworks are held by the city.
The city shall have the power to license or tax street cars, telephones, gas meters, electric meters, water meters, or any other similar device for measuring service, and also telephone, telegraph, electric light and power poles, subways, and wires. The said license or tax shall be exclusive of and in addition to all other lawful taxes upon the property of the holder thereof.
Sec. 123. Power to regulate rates and fares.
All power to regulate the rates, fares, and charges for service by public utility corporations is hereby reserved to the people, to be exercised by them by ordinance of the council or in the manner herein provided for initiating or referring an ordinance. Any right of regulation shall further include the right to require uniform, convenient, and adequate service to the public and reasonable extensions of such service and of such public utility works.
Sec. 124. City may purchase-procedure.
Every grant of a franchise or right shall provide that the city may, upon the payment therefor of its fair valuation to be made as provided in the grant, purchase and take over the property and plant of the grantee in whole or in part.
The procedure to effect such purchase shall be as follows:
When the council shall by resolution direct that the city manager shall ascertain whether any such property or part thereof should be acquired by the city, or in the absence of such action of the council, when a petition subscribed by ten per cent of the qualified taxpaying electors requesting that the city manager shall ascertain whether any such property or part thereof should be acquired by the city shall be filed with the clerk, the city manager shall forthwith carefully investigate said property and report to the council:
(a) At what probable cost said property may be acquired; and
(b) What, if any, probable additional outlays would be necessary to operate the same.
Sec. 125. Matters in charter not to impair right of council to insert other matters in franchise.
The enumeration and specification of particular matters in this charter which must be included in every franchise or grant shall never be construed as impairing the right of the council to insert in such franchise or grant such other and further matters, conditions, covenants, terms, restrictions, limitations, burdens, taxes, assessments, rates, rentals, charges, controls, forfeitures, or any other provision whatever, as the council shall deem proper to protect the interests of the people.
Sec. 126. Books of record and reference.
The city manager shall provide and cause to be kept in the office of the city clerk the following books of record and reference:
(a) A franchise record, indexed and of proper form, in which shall be transcribed accurate and correct copies of all franchises or grants by the city to any person, persons, or corporation owning or operating any public utility. The index of said record shall give the name of the grantee and thereafter the name of any assignee thereof. Said record shall be a complete history of all franchises granted by the city and shall include a comprehensive and convenient reference to actions, contests, or proceedings at law, if any, affecting the same.
(b) A public utility record, for every person, persons, or corporation owning or operating any public utility under any franchise granted by the city, into which shall be transcribed accurate and correct copies of each and every franchise granted by the city to said person, persons, or corporation, or which may be controlled or acquired by them or it, together with copies of all annual reports and inspection reports, as herein provided, and such other matters of information and public interest as the city manager may from time to time acquire. All annual and inspection reports shall be published once in one daily newspaper of general circulation published in the city or printed and distributed in pamphlet form, as the council may deem best, and in case annual reports are not filed and inspections are not made as provided, the city manager shall in writing report to the council the reasons therefor, which report shall be transcribed in the record of the person, persons, or corporation owning or controlling said franchise or grant and published in the city or printed and distributed in pamphlet form as the council may deem best. (Amended by Ord. No. 4773 (1983), § 1, adopted by electorate on November 8, 1983.)
The provisions of this section shall apply to all persons or corporations operating under any franchise now in force or hereafter granted by the city.
Sec. 127. Books of account of city-owned utilities-examinations.
The city, when owning any public utility, shall keep the books of account for such public utility distinct from other city accounts, and in such manner as to show the true and complete financial result of such city ownership, or ownership and operation, as the case may be. Such accounts shall be so kept as to show the actual cost to the city of the public utility owned; all cost of maintenance, extension, and improvement; all operating expenses of every description, in case of such city operation; the amounts set aside for sinking fund purposes; if water or other service shall be furnished for the use of such city owned or operated public utility without charge, the accounts shall show, as nearly as possible, the value of such service and also the value of such similar service rendered by the public utility to any other city department without charge; such accounts shall show reasonable allowance for interest, depreciation, and insurance, and also estimates of the amount of taxes that would be chargeable against such property if owned by a private corporation. The council shall cause to be printed annually for public distribution a report showing the financial results, in form as aforesaid, of such city ownership or ownership and operation. The accounts of such public utility, kept as aforesaid, shall be examined at least once a year by an expert accountant, who shall report to the council the result of the examination. Such expert accountant shall be selected in such manner as the council may direct, and said accountant shall receive for the services such compensation, to be paid out of the income or revenue from such public utility, as the council may prescribe.*
No free water service shall hereafter be given to any person, persons, firms, corporations, or institutions whatever other than the corporate City of Boulder.
Sec. 128A. Water not to be supplied to certain described areas; exceptions.
The City of Boulder shall not supply water for domestic, commercial, or industrial uses to land lying on the westward side of the following described line, except as specifically stated herein. This provision shall not deny city water to areas which were a part of the City of Boulder on the effective date of this measure, July 21, 1959, nor to taps being supplied by said city in other areas at said effective date, on July 21, 1959.
Said line begins at the intersection of the contour line of 5,750 feet U.S. Geological Survey datum with the north line of Section 30, Township 1 South, Range 70 West of the 6th P.M.; thence northerly along said contour line to the first intersection north of Baseline Road of this line and the Boulder city limits as they existed as of May 5, 1959; thence north along the Boulder city limits as said limits existed as of May 5, 1959, to the most northerly intersection of said city limits and Anderson Ditch; thence westerly along the Anderson Ditch to a point that bears south 82°23'07" west, 1,533.2 feet from the intersection of the centerline of Arapahoe Avenue and the north-south centerline of Section 36, Township 1 North, Range 71 West of the 6th P.M.; thence south 00°31'00" west, 113.9 feet; thence north 77°32'00" west, 407.6 feet; thence south 22°29'20" west, 123.8 feet; thence north 65°48'00" west, 297.4 feet; thence north 07°09'00" east, 176 feet, more or less to the contour line of 5,454 feet U.S. Geological Survey datum; thence westerly along said contour line to its intersection with Anderson Ditch; thence westerly along Anderson Ditch to the western boundary of Section 36, Township 1 North, Range 71 West of the 6th P.M.; thence due north to the middle line of Colorado Highway No. 119; thence easterly along the middle line of said Colorado Highway No. 119 to a point where said middle line intersects the Farmers Ditch; thence northeasterly along the Farmers Ditch to its intersection with the Boulder city limits as they existed as of May 5, 1959; thence northerly along said Boulder city limits to their intersection with Alpine Avenue projected westerly; thence easterly on said city limits to a point 150 feet west of the center of 3rd Street; thence north to the westward projection of Kalmia Avenue; thence westerly along this projection to its intersection with the contour line of 5,650 feet U.S. Geological Survey datum; thence northerly on said contour line 5,650 feet U.S. Geological Survey datum to its intersection with the north boundary of Section 13, Township 1 North, Range 71 West of the 6th P.M.; thence westerly on this line to its intersection with the contour line of 5,750 feet U.S. Geological Survey datum; thence north indefinitely on said contour line 5,750 feet U.S. Geological Survey datum.
Provided, however, that notwithstanding the above-stated restrictions on the supply of water service, city water service can be extended to the following described tract or tracts of land, if and only if said tract or tracts of land are used to carry out the purposes and functions of the University Corporation for Atmospheric Research, the National Center for Atmospheric Research or the National Science Foundation:
(a) Tract No. 1: The west 2,750 feet of Section 7, Township 1 South, Range 70 West of the 6th P.M.
(b) Tract No. 2: The northeast quarter and the southeast quarter of Section 12, Township 1 South, Range 71 West of the 6th P.M.
Provided further, that the city water service can be extended to the following described tract or tracts of land:
Tract A: Lots 16, 16A, 17, 17A, 18 and 18A, all in Block One, Canon Park Subdivision, County of Boulder, according to the recorded plat thereof, provided that said service shall be restricted to service for one single-family residence.
Provided, further, that subject to certain conditions contained in a Memorandum of Agreement, which may be modified by the property owner and the City Council, but which shall provide, at a minimum, for the dedication of a Scenic Easement restricting the size, height, location, extent, and use of all structures on the property to the conditions existing as of May 21, 1991, water service may be extended to the restaurant known as the Flagstaff House and to the single-family residence located on the following described land, consisting of Tracts A and B, to wit:
Tract A: A tract of land located in the south half of the northwest quarter of Section 36, Township 1 North, Range 71 West of the 6th P.M., County of Boulder, State of Colorado, described as follows:
Commencing at the center of said Section 36, from which the north quarter corner of said Section 36 bears north 00°40'20" west, thence south 81°48'22" west, 752.87 feet to the approximate centerline of Boulder County, Road No. 56 (Flagstaff Road); thence north 00°26'02" west, 300.85 feet to the TRUE POINT OF BEGINNING;
Thence south 89°30'15" west, 442.67 feet;
Thence north 00°11'44" west, 245.00 feet;
Thence south 89°30'15" west, 180.00 feet;
Thence south 00°11'44" east, 445.00 feet to the east-west centerline of said Section 36;
Thence north 89°30'15" east, 623.50 feet along the east-west centerline of said Section 36 to a point on a line from which the true point of beginning bears north 00°26'02" west;
Thence north 00°26' 02" west, 200 feet to the TRUE POINT OF BEGINNING.
Tract B: A tract of land located in the northeast quarter of the southwest quarter of Section 36, Township 1 North, Range 71 West of the 6th P.M., County of Boulder, State of Colorado, described as follows:
Commencing at the center of said Section 36, from which the north quarter corner of said Section 36 bears north 00°40'20" west, thence south 81°48'22" west, 752.87 feet to the approximate centerline of Boulder County Road No. 56 (Flagstaff Road) and the TRUE POINT OF BEGINNING;
Thence south 58°31'06" west, 28.00 feet along the approximate centerline of said Boulder County Road No. 56;
Thence south 60°49'49" west, 94.05 feet along the approximate centerline of said Boulder County Road No. 56 to a point of curve to the left;
Thence southwesterly, 68.54 feet along the arc of said curve and along the approximate centerline of said Boulder County Road No. 56, said arc having a radius of 107.03 feet, a central angle of 36°41'25" and being subtended by a chord that bears south 42°29'07" west, 67.37 feet;
Thence south 24°08'24" west, 57.22 feet along the approximate centerline of said Boulder County Road No. 56;
Thence north 20°31'59" west, 113.85 feet;
Thence north 37°03'30" west, 138.42 feet;
Thence north 54°30'35" west, 64.55 feet;
Thence north 81°23'16" west, 35.55 feet to the east-west centerline of said Section 36;
Thence north 89°30'15" east, 385.21 feet along the east-west centerline of said Section 36 to a point on a line, from which the True Point of Beginning bears south 00°26'02" east;
Thence south 00°26'02" east, 100.85 feet to the TRUE POINT OF BEGINNING.
Provided, further, that this section 128A shall not apply to water supplied to fire departments or districts, Boulder County, the State of Colorado, or the United States for immediate use for firefighting purposes and for storage in fire trucks and in cisterns for such purposes, from up to three locations on the Lakewood Pipeline at the Cold Spring Road/Nederland area, the Primos Hill area, and the Sugar Loaf area in addition to the established locations of the Betasso Water Treatment Plant and Lakewood Reservoir, with an aggregate limit of 45,000 gallons of storage in cisterns, located at the point of supply, pursuant to policies and conditions approved by the City Council, consistent with the intent of this section. (Added by Ord. No. 2244 (1959), § 1, adopted by electorate on July 21, 1959. Amended by Ord. No. 2391 (1961), § 1, adopted by electorate on January 31, 1961. Further amended by Ord. No. 4452 (1979), § 1, adopted by electorate on November 6, 1979. Further amended by Ord. No. 4606 (1981), § 1, adopted by electorate on November 3, 1981. Further amended by Ord. No. 5402 (1991), § 1, adopted by electorate on November 5, 1991. Further amended by Ord. No. 7076 (2000), § 1, adopted by electorate on November 7, 2000.)
Sec. 129. Franchises in parks.
(Repealed by Ord. No. 2392 (1961), § 1, adopted by electorate on January 31, 1961.)
* Indicates those sections in which reference to gender were neutralized by Ord. No. 4602, November 3, 1981.