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A. Article XX of the Colorado Constitution establishes the process for creating home rule cities and provides that home rule cities may own and operate utilities within and without territorial limits.
B. Colorado Springs is a home rule City created pursuant to article XX of the Colorado Constitution. The Charter authorizes the City to own and operate utilities inside and outside the City limits 1 , and also establishes utilities as a citizen owned enterprise for the purpose of owning and operating utility systems designated by Council 2 .
C. The City Charter directs that Utilities funds be kept separate from the Municipal General Fund of the City and from other City enterprises. It is intended that Utilities' revenues will come from the rates and prices it charges for goods and services rather than from taxes.
D. The City Charter directs the City Council to sit as the Board of Directors for Utilities. Council recognizes that in its capacity as Utilities Board it conducts all business in full compliance with applicable legal, statutory, and regulatory requirements. Further, in this capacity, it must govern Colorado Springs Utilities in accord with sound business principles, in a manner that supports long-term sustainability of the enterprise and maximizes value to the citizens.
E. Council further finds that it will best be able to carry out its fiduciary responsibilities for exercising its power and authority for the governance of Utilities by directing the adoption of a governance manual for Utilities as provided in this chapter. The governance manual requires the Utilities Board to excel at the primary obligations of governance for the organization to meet its Board-directed mission and customer- focused performance expectations.
F. In adopting this approach, the Council intends that as the Utilities Board it will work with the Chief Executive Officer in partnership to achieve excellence in governance to attain long- term organizational sustainability. The Utilities Board and the Chief Executive Officer work jointly to set the strategic direction and vision for the enterprise. The Utilities Board shall establish a clear distinction between its duties, responsibilities and authorities and the Chief Executive Officer's responsibilities and authorities through formal, written governance policies. The Utilities Board shall respect the exclusive authority of the Chief Executive Officer to lead the enterprise. To the maximum extent legally possible and guided by the Utilities Board governance policies, the Chief Executive Officer is authorized to make decisions, take actions, establish processes and procedures, implement plans and work on behalf of the enterprise with customers, elected officials, government agencies, stakeholders and the public to meet the Utilities Board's strategic focus and Board Expected Results. The Chief Executive Officer shall support the Utilities Board by implementing its direction and decisions and assisting the Utilities Board in obtaining sufficient information and knowledge to meet their joint responsibilities. (Ord. 98-173; Ord. 01-42; Ord. 18-42; Ord. 18-48)
1. See City Charter article I, subsection 1-20(d).
2. See City Charter article VI.