HomeMy Public PortalAbout1997.09.11 Idaho Power Company Memorandum of Understanding Installation of Underground Power LinesMEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING is entered into on
;,-141,0&}-szdk`( , 1997, between Idaho Power Company, a corporation of the State of Idaho
("IPCo") and the City of McCall, a municipal corporation of the State of Idaho ("City").
WITNESSETH:
Whereas, the City desires to promote the installation of underground power lines in
the public rights -of -way of the City; and
Whereas, IPCo is willing to provide for the installation of underground distribution
power lines in the City's rights -of -way, consistent with its standard undergrounding policies,
including Rule H, Distribution Line Extensions, or its successor, on file with the Idaho Public
Utilities Commission.
Now, therefore, in consideration of the mutual covenants set forth herein, IPCo and
the City agree as follows:
1. IPCo will notify the City when it plans to construct new overhead distribution
power lines or to upgrade or relocate existing overhead distribution power lines within the City's
public rights -of -way. "Distribution power lines" will consist of IPCo power lines of 34.5 kV or less.
IPCo's notice will identify the new overhead distribution power line to be installed or the existing
overhead distribution power line to be upgraded or relocated, and will provide a preliminary
estimate of the overhead/underground differential for the distribution power line. The
"overhead/underground differential" will represent the estimated difference in cost between
installing the new distribution power line overhead or underground, or between installing the
upgraded or relocated distribution power line overhead or underground. The cost of installing
upgraded or relocated distribution power lines underground will include any customer facility
upgrade costs associated with the underground distribution power line installation. "Customer
facility upgrade" costs include the costs incurred for upgrades or replacements of customer electrical
facilities which are required to allow the customer's electrical facilities to properly connect with the
new underground distribution power line.
2. Idaho Power's preliminary estimate of the overhead/underground differential
will include a standard per -foot calculation of IPCo's cost of installing the distribution power line
underground, plus a general estimate by a licensed electrician of the cost, if any, of customer facility
upgrades. If the City declines to request underground installation of the distribution power line
within three (3) months after receiving IPCo's preliminary estimate, the City will reimburse Idaho
Power for the cost, if any, of the estimating work provided by the licensed electrician.
3. If the City requests a binding estimate of the overhead/underground
differential after receiving IPCo's preliminary estimate, IPCo will develop a binding estimate based
on an engineering design of the underground distribution power line installation and a detailed
estimate from a licensed electrician of the cost, if any, of customer facility upgrades. If the City
declines to request underground installation of the distribution power line within three (3) months
after receiving IPCo's binding estimate, the City will reimburse Idaho Power for its engineering
design costs in developing the binding estimate, plus the cost, if any, of the detailed estimating work
provided by the licensed electrician.
4. If the City requests that IPCo install the distribution power line underground
based on the binding estimate, it will pay IPCo the amount of the binding estimate within thirty (30)
days after IPCo issues the binding estimate. IPCo will then proceed with the installation of the
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underground distribution power line. IPCo will have sole authority to determine the design and
construction requirements and specifications for the underground distribution power lines and related
facilities installed under this Memorandum of Understanding.
5. IPCo's agreement to install underground distribution power lines under the
terms of this Memorandum Of Understanding will not apply where:
a. IPCo determines in good faith that the installation of the underground
distribution power line would not be advisable based on IPCo's electrical system operating
requirements; or
b. IPCo determines in good faith that there is not satisfactory right- of -
way (including any required permits or approvals) available for the installation of the underground
distribution power line.
6. In the event that IPCo is required by the City to relocate an underground
distribution power line installed under the provisions of this Memorandum of Understanding, the
City will reimburse IPCo for any amount by which the cost of relocating the underground
distribution power line exceeds the cost of relocating a comparable overhead distribution power line
as calculated by IPCo.
7. Except where otherwise expressly provided herein, all of IPCo's actions
hereunder related to the installation of underground distribution power lines shall be governed by
IPCo's standard undergrounding policies, including Rule H, Distribution Line Extensions, or its
successor, on file with the Idaho Public Utilities Commission.
8. References to the "City's rights -of -way" hereunder shall include all streets,
alleys and public places owned by the City. Notwithstanding any other provision of this Agreement,
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Idaho Power expressly agrees that it will not install power lines in public places of the City
(including but not limited to parks, squares or golf courses) without the advance written approval
of the appropriate agency(ies) or official(s) of the City.
9. This Memorandum Of Understanding is subject to the jurisdiction of the Idaho
Public Utilities Commission.
CITY OF MCCALL
By:
ti AyoR
IDAHO POWER COMPANY
4
��P G ��W R
I D A H O P O W E R C O M P A N Y
P . O . B O X 7 0
B O I S E , I D A H O 8 3 7 0 7
R i c h a r d L . H a h n
, R e l i c e n s i n g P u b l i c R e l a t i o n s M a n a g e r
S e p t e m b e r 1 8 , 1 9 9 7
M r . J i m H e n d e r s o n
A c t i n g C i t y M a n a g e r
C i t y o f M c C a l l
B o x 9 8 6
M c C a l l , I d a h o 8 3 6 3 8
D e a r M r . H e n d e r s o n :
I a m w r i t i n g i n r e s p o n s e t o y o u r r e c e n t t e l e p h o n e c o n v e r s a t i o n w i t h S h a r o n W o o d r e g a r d i n g
t h e f r a n c h i s e a g r e e m e n t b e t w e e n t h e C i t y o f M c C a l l ( C i t y ) a n d I d a h o P o w e r C o m p a n y ( c o m p a n y ) .
A s y o u k n o w , o u r c o m p a n y r e p r e s e n t a t i v e K e l l y E d w a r d s , w h o w o r k e d w i t h G a r y S h i m u n o n t h e
f r a n c h i s e a g r e e m e n t , h a s r e c e n t l y t a k e n i l l . I n t h a t r e g a r d , S h a r o n h a s a s k e d m e t o w o r k w i t h y o u i n
K e l l y ' s a b s e n c e o n t h e f r a n c h i s e a g r e e m e n t .
P e r y o u r r e q u e s t , a t t a c h e d a r e t w o o r i g i n a l c o p i e s o f t h e f r a n c h i s e a g r e e m e n t t h a t w a s
r e c e n t l y a d o p t e d b y t h e C i t y . T h i s f r a n c h i s e a g r e e m e n t i s i d e n t i c a l t o t h e a g r e e m e n t t h a t t h e C i t y
c o n s i d e r e d t h r o u g h t h e o r d i n a n c e p r o c e s s , a n d t h a t w a s p u b l i s h e d i n t h e S e p t e m b e r 4 e d i t i o n o f t h e
S t a r N e w s , w i t h o n e e x c e p t i o n . T h e c h a n g e i s o n t h e l a s t p a g e . S p e c i f i c a l l y , D . H . J a c k s o n ' s t i t l e i s
n o w V i c e P r e s i d e n t - C o r p o r a t e A f f a i r s .
P l e a s e h a v e t h e M a y o r a n d C i t y C l e r k e x e c u t e b o t h o r i g i n a l s . R e c o r d t h e d a t e o f a d o p t i o n i n
t h e s p a c e p r o v i d e d a n d r e c o r d t h e s a m e d a t e i n S e c t i o n 1 . R e t u r n b o t h o r i g i n a l c o p i e s t o m e f o r
c o m p a n y a c c e p t a n c e a n d t o b e g i n t h e i m p l e m e n t a t i o n p r o c e s s . O n e o r i g i n a l w i l l b e r e t u r n e d t o t h e
C i t y C l e r k w i t h o u r f o r m a l a c c e p t a n c e l e t t e r . I n t h e i n t e r i m , t h e f r a n c h i s e a g r e e m e n t s h o u l d b e
p u b l i s h e d w i t h i n o n e m o n t h a f t e r a d o p t i o n , i n a c c o r d a n c e w i t h t h e a t t a c h e d p r o c e d u r e s .
I a p p r e c i a t e y o u r a s s i s t a n c e w i t h t h e f r a n c h i s e a g r e e m e n t . I f y o u h a v e a n y q u e s t i o n s , p l e a s e
c a l l m e .
S i n c e r e l y ,
A t t a c h m e n t
T e l e p h o n e ( 2 0 8 ) 3 8 8 - 2 5 1 3 , F a x ( 2 0 8 ) 3 8 8 - 6 9 1 1
e - m a i l r l h 2 5 1 3 @ i d a h o p o w e r . c o m
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
Richard L. Hahn
Relicensing Public Relations Manager
September 22, 1997
Mr. Jim Henderson
Acting City Manager
City of McCall
Box 986
McCall, Idaho 83638
Dear Mr. Henderson:
I am writing as a follow-up to my September 18 letter to you regarding the McCall
Franchise Agreement.
As you know, a Memorandum of Understanding (MOU) between the City and company
regarding the installation of underground power lines in the public rights -of -way was being
considered concurrently with the franchise agreement. Per your request, attached are two
original copies of the MOU. This MOU is identical to the MOU that was considered by the
City, with one exception. The change is on page one, where the space for the date was changed
to allow for writing in the month and day. Please have the Mayor execute both originals and
return them to me for company acceptance. I will return one original to you after company
acceptance.
Again, I appreciate your assistance with the franchise agreement and the MOU. If you
have any questions, please call me.
Sincerely,
c-trOP/3/L---
Attachment
Telephone (208) 388-2513, Fax (208) 388-6911
e-mail rlh2513@idahopower.com
ftM�PO4NER
Subject: Procedural Requirements for Passing Franchise Ordinances
To: City Officials
From: Rich Hahn
As the company has been renewing its expired franchise agreements, questions have been raised by
City officials regarding the procedural requirements for passing franchise ordinances. The Idaho Code sets
out special rules for passing franchise ordinances, and we need to make sure these rules are followed when
company franchise ordinances are adopted by the City. The following is a brief discussion of the issue.
There are three primary sections in the Idaho Code that apply to the passage of franchise
ordinances: Sections 50-329, 50-901 and 50-902. Section 50-902 is a general section that applies to all
municipal ordinances. This section states in part:
Ordinances shall be read on three (3) different days, two (2) readings of which may be by
title only, and one (1) reading of which shall. be in full, unless one-half (%2) plus one (1) of
the members of the full council shall dispense with the rule.
Apparently, many Idaho cities interpret this section to require only one City Council meeting to
pass an ordinance. However, even if only one City Council meeting is required for general ordinances
under the language of Section 50-902 above, Section 50-329 requires at least two City Council meetings
for franchise ordinances. Section 50-329 provides in part:
No ordinance granting a franchise in any City shall be passed on the day of its
introduction, nor for thirty (30) days thereafter, nor until such ordinance shall have been
published in at least one (1) issue of the official newspaper of the City;
Under this language, the City would introduce the franchise ordinance at a City Council meeting,
and then pass the ordinance at a separate meeting thirty days or more after the introduction. The ordinance
would also have to be published by the City before it is passed.
Once a City ordinance has been passed, Section 50-901 requires that all ordinances "shall, before
they take effect and within one (1) month after they are passed be published...". Accordingly, the City's
franchise ordinance would not go into effect until it is published, which must occur within one month after
passage.
The above guidelines indicate the following sequence of events for passing and implementing
franchise ordinances in Idaho. The following is a summary of these guidelines:
• The City introduces the franchise ordinance and has the first reading thereof.
• The City publishes the proposed franchise ordinance before adoption (1st publishing).
• The City adopts the franchise ordinance not less than 30 days after it was introduced.
• Idaho Power accepts the franchise ordinance.
• The City publishes the adopted franchise ordinance within one month after it was passed (2nd
publishing).
McCALL
CITY CLERK
October 1, 1997
Richard Hahn
Idaho Power
PO Box 70
Boise, Idaho 83707
RE: Franchise Agreement
Please find the signed agreement that is now ready for final acceptance by Idaho Power.
Both copies are being returned for Idaho Power signatures. As stated in your September
letter, one original will be returned to the city of McCall with a formal acceptance letter.
Also included are the two originals of the Memorandum Of Understanding. The council
acceptance date of September 1 lth is noted on the first page. The processing of
documents is new to me as I have taken on the responsibilities of Acting City Clerk.
Thus, I am not sure if that is the date needed which you mentioned in your MOU letter.
Thank you for your assistance on completing this matter.
Sincerely,
,33c41Q.NLA-r-
Cherry Woodbury
Acting City Clerk
216 East Park Street • P.O. Box 1065 • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038
����P O ��M I E R
I D A H O P O W E R C O M P A N Y
P . O . B O X 7 0
B O I S E , I D A H O 8 3 7 0 7
R i c h a r d L . H a h n
R e l i c e n s i n g P u b l i c R e l a t i o n s M a n a g e r
S e p t e m b e r 1 8 , 1 9 9 7
M r . J i m H e n d e r s o n
A c t i n g C i t y M a n a g e r
C i t y o f M c C a l l
B o x 9 8 6
M c C a l l , I d a h o 8 3 6 3 8
D e a r M r . H e n d e r s o n :
I a m w r i t i n g i n r e s p o n s e t o y o u r r e c e n t t e l e p h o n e c o n v e r s a t i o n w i t h S h a r o n W o o d r e g a r d i n g
t h e f r a n c h i s e a g r e e m e n t b e t w e e n t h e C i t y o f M c C a l l ( C i t y ) a n d I d a h o P o w e r C o m p a n y ( c o m p a n y ) .
A s y o u k n o w ; o u r c o m p a n y r e p r e s e n t a t i v e K e l l y E d w a r d s , w h o w o r k e d w i t h G a r y S h i m u n o n t h e
f r a n c h i s e a g r e e m e n t , h a s r e c e n t l y t a k e n i l l . I n t h a t r e g a r d , S h a r o n h a s a s k e d m e t o w o r k w i t h y o u i n
K e l l y ' s a b s e n c e o n t h e f r a n c h i s e a g r e e m e n t .
P e r y o u r r e q u e s t , a t t a c h e d a r e t w o o r i g i n a l c o p i e s o f t h e ' f r a n c h i s e a g r e e m e n t t h a t w a s
r e c e n t l y a d o p t e d b y t h e C i t y . T h i s f r a n c h i s e a g r e e m e n t i s i d e n t i c a l t o t h e a g r e e m e n t t h a t t h e C i t y
c o n s i d e r e d t h r o u g h t h e o r d i n a n c e p r o c e s s , a n d t h a t w a s p u b l i s h e d i n t h e S e p t e m b e r 4 e d i t i o n o f t h e
S t a r N e w s , w i t h o n e e x c e p t i o n . T h e c h a n g e i s o n t h e l a s t p a g e . S p e c i f i c a l l y , D . H . J a c k s o n ' s t i t l e i s
n o w V i c e P r e s i d e n t - C o r p o r a t e A f f a i r s .
P l e a s e h a v e t h e M a y o r a n d C i t y C l e r k e x e c u t e b o t h o r i g i n a l s . R e c o r d t h e d a t e o f a d o p t i o n i n
t h e s p a c e p r o v i d e d a n d r e c o r d t h e s a m e d a t e i n S e c t i o n 1 . R e t u r n b o t h o r i g i n a l c o p i e s t o m e f o r
c o m p a n y a c c e p t a n c e a n d t o b e g i n t h e i m p l e m e n t a t i o n p r o c e s s . O n e o r i g i n a l w i l l b e r e t u r n e d t o t h e
C i t y C l e r k w i t h o u r f o r m a l a c c e p t a n c e l e t t e r . I n t h e i n t e r i m , t h e f r a n c h i s e a g r e e m e n t s h o u l d b e
p u b l i s h e d w i t h i n o n e m o n t h a f t e r a d o p t i o n , i n a c c o r d a n c e w i t h t h e a t t a c h e d p r o c e d u r e s .
I a p p r e c i a t e y o u r a s s i s t a n c e w i t h t h e f r a n c h i s e a g r e e m e n t . I f y o u h a v e a n y q u e s t i o n s , p l e a s e
c a l l m e .
S i n c e r e l y ,
. t c ' 4 ) 1 1 C / L .
A t t a c h m e n t
T e l e p h o n e ( 2 0 8 ) 3 8 8 - 2 5 1 3 , F a x ( 2 0 8 ) 3 8 8 - 6 9 1 1
e - m a i l r 1 h 2 5 1 3 @ i d a h o p o w e r . c o m
ORDINANCE NO.713
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328, 50-329 AND 50-329A
GRANTING A FRANCHISE TO IDAHO POWER COMPANY, A CORPORATION, AND TO
ITS SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN AND OPERATE IN AND
UPON THE PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC PLACES
WITHIN THE CORPORATE LIMITS OF THE CITY OF McCALL, IDAHO, ELECTRIC UTILITY
PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE
TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS,
INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN
TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES;
SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF
EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND
SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE
EXERCISE OF SAID FRANCHISE."
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF McCALL, IDAHO
THAT;
SECTION 1. The City of McCall, Idaho (hereinafter called the "City") hereby grants to
IDAHO POWER COMPANY, a corporation, and to its successors and assigns (hereinafter called
the "Grantee") the right, (subject to the rights of the City set kth in Sion 14 hereof), privilege
and franchise for a period of twenty (20) years from and after ,_,N 1.1 `�(� 2 , however,
with the right to amend by mutual agreement in accordance with Section 15, to construct, maintain
and operate in and upon the present and future streets, alleys, highways and other public places
within the corporate limits of the City, electric utility property and facilities for supplying electricity
to the City, and the inhabitants thereof, and to persons and corporations beyond the limits of the City,
including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics or
other communications facilities of the Grantee or other parties, (provided, that Grantee shall comply
with the City's requirements for cable system franchises) all subject to the terms and conditions
hereinafter specified. In the case of annexation of property to the corporate limit, such area will be
considered under this agreement, upon effective date of the annexation, subject to Section 9 hereof.
All such electric utility property and facilities now maintained by the Grantee within the streets,
alleys, highways and other public places within the corporate limits of the City shall be deemed
covered by this ordinance as provided herein.
SECTION 2. All of the Grantee's electric property and facilities in and upon the present and
future streets, alleys, highways and public places within the corporate limits of the City shall be
constructed and at all times maintained in good order and condition and in accordance with standard
engineering practices and all applicable safety codes and lawful governmental regulations, including
all applicable state and federal regulations and all construction standards presently in effect by the
Idaho Public Utilities Commission or adopted by that Commission during the term of this franchise
agreement.
SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as necessary
within the present and future streets, alleys, highways and other public places owned by the City.
The City shall have no responsibility for the costs of such relocations. The Grantee shall bear the
cost of relocating its facilities at the City's request, unless the facilities are to be relocated for the
benefit of a third party, in which case the third party shall pay the costs of relocation. In the event
federal, state or other funds are available in whole or in part for utility relocating purposes, the City
shall apply for such funds and the Grantee will be reimbursed to the extent any such fiords are
actually obtained.
SECTION 4. It shall be lawful for the Grantee to make all needful or convenient
excavations and/or installations in any of the present and future streets, alleys, highways and other
public places within the corporate limits of the City for the purpose of erecting and maintaining the
posts, poles, towers, or other supports for its wires or for the purpose of laying, maintaining and
operating conduits, vaults and wires and other conductors underground for the purpose aforesaid,
or to repair and improve such electric power and light system and to extend the same; provided that
when the Grantee or any person or corporation under the authority of this franchise, shall disturb any
of said streets, alleys, highways or other public places for the purposes aforesaid, he, it or they shall
restore the same to good order and condition as soon as practicable and without unnecessary delay
and failing to do so after five days' notice from the City, or its duly authorized officer or officers,
then the City may place said street, alley, highway or public place in such condition at the cost and
expense of the Grantee, and said Grantee will forthwith pay the full cost and expense thereof upon
demand of the City. All facilities constructed under this ordinance shall be placed and maintained
at such places and positions in or upon such public ways and public places as shall not interfere with
the passage of traffic and shall conform to all applicable laws, rules and regulations.
SECTION 5. The City shall have the right and privilege to string and maintain wires for its
internal communications for its fire, police, airport and other services upon the poles and other
facilities erected and maintained by the Grantee hereunder, subject to the Rules and Regulations of
the Idaho Public Utilities Commission. The City shall string, maintain and operate such wires at its
own expense, risk and responsibility, and in accordance with all legal requirements and good
engineering practices and in such manner as not to impose any additional expense upon Grantee of
its said poles and facilities. Any such wires of the City shall be subject to interference by the Grantee
only when necessary in the maintenance, operation or repair of the Grantee's own fixtures, wires,
facilities and appurtenances.
SECTION 6. The Grantee shall at all times indemnify and hold the City, its officers,
employees and agents, harmless from any and all expenses or liability arising from or by reason of
any negligent act or omission of the Grantee, its representatives or employees, in the construction,
operation or maintenance of any of the Grantee's electric utility property or facilities.
SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee shall have
any rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidencing
General Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal
Injury. Such insurance shall have minimum limits of $1,000,000 per occurrence. The City of
McCall shall be named as an "Additional Named Insured" under Grantee's insurance policy. Should
the minimum limits of insurance as set forth herein be increased above $1,000,000, pursuant to the
Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any similar legislation, the Grantee
shall be required to provide the City with a new Certificate of Insurance evidencing the higher limits
upon the City's request.
SECTION 8. The electric service to be furnished to the public hereunder, and all rates and
charges therefor, and all regulation of the Grantee hereunder, shall at all times be subject to all rules,
regulations and orders that may be lawfully prescribed by the Idaho Public Utilities Commission or
by any other governmental authority now or hereafter having jurisdiction over such matters. During
the term of this franchise, Grantee shall at all times assure that customers within the City have access
to customer service from the Grantee as required by the Idaho Public Utilities Commission.
SECTION 9. As compensation for the right, privilege and franchise hereby granted, Grantee
agrees to pay to the City on or before the 30th day of January, April, July and October, an amount
equivalent to one percent (1%) of Grantee's "gross revenues" for the preceding calendar quarter.
For purposes of this Section, "gross revenues" shall mean the amount of money billed by the Grantee
for the electricity it sells within the corporate limits of the City to customers, less uncollectibles. The
City shall provide appropriate information to the Grantee to allow the Grantee to identify which of
its customers are located within the corporate limits of the City for purposes of paying franchise fees.
Grantee shall not be responsible for any failure to pay franchise fees which results from deficiencies
in such information provided by the City. In the event the City annexes a new area into its corporate
limits, the terms of this Section 9 regarding franchise fees shall not apply to the annexed area until
sixty (60) days after the City has supplied the Grantee with appropriate information for the
identification of the Grantee's customers within the annexed area.
The Grantee's franchise fee payment obligations hereunder shall commence with the start
of the Grantee's first full billing cycle following the effective date of this ordinance; provided, that
the Grantee must first receive approval from the Idaho Public Utilities Commission for the collection
of the franchise fee in the rates charged by Grantee.
SECTION 10. The City shall have the right during the term of this franchise agreement to
increase the franchise fee hereunder up to three percent (3%), by obtaining approval of a majority
of voters of the City voting on the question at an election held in accordance with chapter 4, title 50,
Idaho Code. Any such vote to increase the franchise fee hereunder shall provide that the increased
franchise fee will apply to any electric service provider (other than the City) who utilizes the City's
streets, alleys or other public places to provide electrical service within the City, during the term of
this franchise agreement.
SECTION 11. The Grantee shall keep accurate books of account for the collection of the
franchise fees hereunder and the City shall have the right to inspect the same at all times during
business hours, and from time to time audit the same for the purpose of determining gross revenues
under Section 9 above.
SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as
payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public
utility including, but not limited to, taxes, fees or charges related to easements, franchises, rights -of -
way, utility lines and equipment installation, maintenance and removal during the term of this
franchise agreement.
SECTION 13. The Grantee shall have the right and privilege, insofar as the City is able to
grant the same, in accordance with National Arborist Association standards, of the pruning of all
trees which overhang the present and future streets, alleys, highways and other public places within
the corporate limits of the City, in such a manner and to such extent as will prevent the branches or
limbs or other parts of such trees from touching or interfering with its wires, poles and other fixtures
and equipment. However, except in an emergency, no pruning shall be undertaken without giving
the occupant of the adjacent property written or oral notice that such pruning will be performed.
SECTION 14. In consideration of Grantee's undertaking hereunder as evidenced by its
acceptance hereof, the City agrees not to engage in the business of providing electric service during
the life of this franchise or any extension thereof in competition with the Grantee, its successors and
assigns; but nothing herein contained shall be construed or deemed to prevent the City from
exercising at any time any power of eminent domain granted to it under the laws of the State of
Idaho. The City shall not grant a franchise to another electric service provider during the term of this
franchise agreement unless the electric service provider has received approval to provide electrical
service within the City from the Idaho Public Utilities Commission, and the City has imposed the
same franchise fee on the electric service provider as paid by the Grantee.
SECTION 15. In the event of an amendment to the laws, rules or regulations of the City of
McCall, the State of Idaho or the Public Utilities Commission of Idaho applicable to this franchise,
or for periodic review of any section of this agreement, the terms of this franchise and the rights and
privileges hereby conferred may be changed, altered, amended or modified upon mutual agreement
between the City and the Grantee. In all cases, 60 days notice shall be required on the part of City
or Grantee to reopen the agreement pursuant to this section.
SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise
and grant or any material portions thereof or the failure promptly to perform any of the provisions
thereof shall be cause for the forfeiture of this franchise and grant and all rights .hereunder by the City
after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or
default; however, this provision shall not prevent the Grantee from submitting such question of
violation or forfeiture to the appropriate forum (which may include the district court having
jurisdiction or the Idaho Public Utilities Commission) for determination.
SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification
to the City.
SECTION 18. The Grantee shall assume the cost of publication of this franchise as such
publication is required by law.
SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordinance,
file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and
attested by its corporate seal.
SECTION 20. Inasmuch as the Grantee has constructed and now is maintaining and
operating the electric utility property and facilities in and upon the streets, alleys, highways, and
public places in the City, it is hereby adjudged and declared that this ordinance is necessary for the
preservation of the public peace, health and safety, and therefore this ordinance shall take effect on
P • SSED AND ADOPTED by the Council of the City of McCall this 1143 day of
APPROVED by the Mayor this I G day of vv�,t-QA , ?2.
ATTEST:
City Clerk
(Seal)
ACCEPTANCE
Mayor
IDAHO POWER COMPANY, as the franchisee, accepts the franchise set forth in the above
Ordinance and agrees to abide by the terms and conditions thereof.
DATED this day of , 19
ATTEST:
Secretary
(Seal)
By:
D. H. Jackson
Vice President - Corporate Affairs
��P O I I �� N E R
S t a n C r a v e n
M c C a l l D i s t r i c t M a n a g e r
P . O . B o x 9 0 4
M c C a l l , I d a h o 8 3 6 3 8
( 2 0 8 ) 6 3 4 - 2 1 1 6
M r . G a r y S h i m u n
M c C a l l C i t y M a n a g e r
P . O . B o x 1 0 6 5
M c C a l l , I d a h o 8 3 6 3 8
D e a r M r . S h i m u n :
F e b r u a r y 1 0 , 1 9 9 5
I a m w r i t i n g i n r e s p o n s e t o y o u r J a n u a r y 1 8 , 1 9 9 5 , l e t t e r . Y o u r l e t t e r r e q u e s t s c e r t a i n
i n f o r m a t i o n f r o m I d a h o P o w e r , w h i c h t h e f o l l o w i n g i s i n t e n d e d t o a d d r e s s .
F o r t h e y e a r 1 9 9 4 , I d a h o P o w e r r e c e i v e d a p p r o x i m a t e l y $ 2 , 1 6 4 , 3 9 9 i n r e v e n u e f r o m a l l
c u s t o m e r s l o c a t e d w i t h i n t h e M c C a l l c i t y l i m i t s . R e g a r d i n g y o u r r e q u e s t f o r p r o j e c t e d r e v e n u e s
f o r t h e n e x t f e w y e a r s , t h e C o m p a n y d e f e r s t h a t p r o j e c t i o n t o t h e C i t y o f M c C a l l , b a s e d o n t h e
C i t y ' s p r o j e c t i o n s o f g r o w t h f o r f u t u r e y e a r s .
T h e C o m p a n y a g r e e s w i t h y o u r a s s e s s m e n t r e g a r d i n g o u r i n t e r e s t i n e s t a b l i s h i n g a f a i r a n d
e q u i t a b l e f r a n c h i s e a g r e e m e n t w i t h t h e C i t y . I t i s a l s o o u r d e s i r e t h a t a f r a n c h i s e a g r e e m e n t b e
s a t i s f a c t o r y t o b o t h t h e C o m p a n y a n d t h e C i t y . T h e C o m p a n y i n i t i a l l y p r o v i d e d t h e C i t y w i t h a
c o p y o f o u r s t a n d a r d I d a h o f r a n c h i s e a g r e e m e n t , a n d s u b s e q u e n t l y o f f e r e d c o m m e n t s o n t h e d r a f t
f r a n c h i s e a g r e e m e n t p r e s e n t e d b y t h e C i t y . I t i s o u r h o p e t h a t a f r a n c h i s e a g r e e m e n t c a n b e
r e a c h e d c o n s i s t e n t w i t h t h e s e I d a h o P o w e r p r o p o s a l s . H o w e v e r , w e s h o u l d p o i n t o u t t h a t i f t h e
C i t y d e s i r e s t o i n c l u d e f r a n c h i s e f e e s i n a n I d a h o P o w e r f r a n c h i s e a g r e e m e n t , t h i s i s s u e s h o u l d b e
d e f e r r e d f o r t h e t i m e b e i n g .
Y o u a r e p r o b a b l y a w a r e t h a t a b i l l i s b e f o r e t h e I d a h o L e g i s l a t u r e a d d r e s s i n g u t i l i t y
f r a n c h i s e s a n d , s p e c i f i c a l l y , f r a n c h i s e f e e s . A c o a l i t i o n o f u t i l i t i e s i s s u p p o r t i n g H o u s e B i l l 1 5 3 ,
w h i c h w o u l d c l a r i f y a n d f u r t h e r d e f i n e t h e i s s u e o f u t i l i t y f r a n c h i s e f e e s . S h o u l d t h e b i l l p a s s a n d
b e s i g n e d i n t o l a w , t h e p r o v i s i o n s c o n t a i n e d w i t h i n t h e b i l l w i l l p r o v i d e s i g n i f i c a n t g u i d a n c e t o t h e
u t i l i t i e s a n d c i t i e s r e g a r d i n g f u t u r e f r a n c h i s e a g r e e m e n t s . I t i s , t h e r e f o r e , t h e o p i n i o n o f t h e
C o m p a n y t h a t p e n d i n g t h e o u t c o m e o f t h e l e g i s l a t i v e e f f o r t , i t i s p r e m a t u r e f o r t h e C o m p a n y a n d
t h e C i t y t o a d d r e s s f r a n c h i s e f e e s i n a n e w f r a n c h i s e a g r e e m e n t . T h e C o m p a n y i s , h o w e v e r ,
i n t e r e s t e d i n c o n t i n u i n g t h e d i s c u s s i o n s w i t h t h e C i t y o n r e n e w i n g t h e e x p i r e d F r a n c h i s e
a g r e e m e n t a s w e h a v e p r e v i o u s l y p r o p o s e d . W e w o u l d a l s o b e w i l l i n g t o c o n s i d e r a s h o r t e r t e r m ,
s u c h a s f i v e y e a r s , f o r s u c h a f r a n c h i s e a g r e e m e n t . I f t h i s i s n o t p o s s i b l e , o n c e t h e f i n a l s t a t u s o f
H o u s e B i l l 1 5 3 i s k n o w n , t h e C o m p a n y w i l l b e v e r y i n t e r e s t e d i n r e s u m i n g n e g o t i a t i o n s w i t h t h e
C i t y o n t h e f r a n c h i s e a g r e e m e n t .
n it
1
For many years, Idaho Power has had a good working relationship with the City of
McCall. It is the Company's intention to continue this relationship, and also cooperate where
appropriate on projects that are required to provide electric service to the citizens of McCall. In
that regard, the Company will continue to secure permits from the City, as currently required, to
complete projects within the municipal boundaries. I will also inform you about other large
projects that do not currently require a permit from the City. In this regard, it is important to
recognize that Idaho Power is obligated to provide service to its customers under the Certificate
of Convenience and Necessity granted by the Idaho Public Utilities Commission. I am hopeful the
City's current permit and approval process will not change significantly and result in delays to the
Company's ability to fulfill the obligation to serve its customers. In the meantime, if all currently
required permits are secured, it is the Company's intention to proceed with these projects as we
have in the past.
I hope this information is helpful to you. If you have any questions or would like to have
further information regarding the Company's comments, please call me.
Sincerely,
THE CITY OF MCCALL
POST OFFICE BOX 1065 • MCCALL, IDAHO 83638 • (208) 634-7142 • FAX: (208) 634-3038
January 18, 1995
Mr. Stan Craven
District Manager
Idaho Power Company
Post Office Box 70
Boise, Idaho 83707
Dear Mr. Craven:
The City of McCall is continuing its efforts to redraft a franchise agreement with your company. At
this point, we need income projections from you for your customers within the City. It would be very
helpful if you could give us the actual revenue figures your company received from McCall City
customers last year, along with projected revenue for the next one to two years.
We know that you are just as interested in establishing a fair and equitable franchise agreement as
we are, so I would like to thank you in advance for your cooperation in providing this information
in a timely manner.
I look forward to continued cooperation with you on all projects within the City. With that in mind,
I would like to remind you that without an agreement, City Council would lilze to review all plans you
have for any work within the City prior to your commencement. I am certain that this review will
be conducted in a timely manner, as regular City Council business permits.
Thank you once again for your help.
Sincerely,
Ajoy2,6 P.�,-
Gary P. Shimun
City Manager
GPS/gs
cc: Ted Burton, City Attorney
Scott McDonald, AIC
��1 P a 1 D A H O I V R
I D A H O P O W E R C O M P A N Y
P . O . B O X 7 0
B O I S E , I D A H O 8 3 7 0 7
N o v e m b e r 2 , 1 9 9 4
G a r y P . S h i m u n
C i t y M a n a g e r
C i t y o f M c C a l l
2 1 6 E a s t P a r k S t r e e t
P . O . B o x 1 0 6 5
M c C a l l , I D
S T A N C R A V E N
D i s t r i c t M a n a g e r
R e : I d a h o P o w e r F r a n c h i s e A g r e e m e n t w i t h C i t y o f M c C a l l
D e a r M r . S h i m u n :
I d a h o P o w e r h a s r e v i e w e d t h e p r o p o s e d f r a n c h i s e a g r e e m e n t f o r w a r d e d b y t h e C i t y
o f M c C a l l . I d a h o P o w e r w o u l d p r e f e r t o f o l l o w i t s s t a n d a r d o n e - p a g e f r a n c h i s e a g r e e m e n t f o r
I d a h o c i t i e s , w h i c h c l e a r l y a n d c o n c i s e l y c o v e r s t h e i m p o r t a n t e l e m e n t s o f a f r a n c h i s e .
N o n e t h e l e s s , w e b e l i e v e t h a t a n a g r e e m e n t c a n b e r e a c h e d b a s e d o n y o u r p r o p o s e d f r a n c h i s e f o r m ,
w i t h s e v e r a l m o d i f i c a t i o n s .
T h e c i t y o f M c C a l l ' s p r o p o s e d f r a n c h i s e a g r e e m e n t a p p e a r s t o b e b a s e d o n I d a h o
P o w e r ' s e x i s t i n g f r a n c h i s e a g r e e m e n t w i t h t h e c i t y o f O n t a r i o , O r e g o n , w i t h a n u m b e r o f r e v i s i o n s
a d d e d b y M c C a l l . I n t h i s r e g a r d , i t i s i m p o r t a n t t o n o t e t h a t t h e O n t a r i o o r d i n a n c e r e p r e s e n t s a
f i n a l i z e d a g r e e m e n t n e g o t i a t e d b y O n t a r i o a n d t h e C o m p a n y , a f t e r g i v e a n d t a k e f r o m b o t h s i d e s .
C o n s i d e r i n g t h i s f a c t , I d a h o p o w e r i s r e l u c t a n t t o a g r e e t o a d d i t i o n a l c o n c e s s i o n s i n t h e f r a n c h i s e
a g r e e m e n t , w h i c h i s e v e n l y b a l a n c e d t o b e g i n w i t h . I t s h o u l d b e a l s o n o t e d t h a t , w i t h r e s p e c t t o
f r a n c h i s e f e e s , t h e O n t a r i o o r d i n a n c e w a s e x e c u t e d u n d e r O r e g o n ' s s t a t u t e s a n d r e g u l a t i o n s , w h i c h
e x p r e s s l y a u t h o r i z e O r e g o n c i t i e s t o i m p o s e f r a n c h i s e f e e s u p o n e l e c t r i c u t i l i t i e s ( s e e O r e g o n
R e v i s e d S t a t u t e s � � 2 2 1 . 4 1 0 - 2 2 1 . 4 7 0 a n d O r e g o n A d m i n i s t r a t i v e R u l e s � 8 6 0 - 2 2 - 0 4 0 ) . W i t h
t h i s i n m i n d , t h e C o m p a n y h a s t h e f o l l o w i n g c o m m e n t s o n t h e M c C a l l f r a n c h i s e a g r e e m e n t :
S e c t i o n 1 : T h e M c C a l l f r a n c h i s e o r d i n a n c e s t a t e s a t e r m o f t e n y e a r s . T h e
O n t a r i o o r d i n a n c e s t a t e s a t e r m o f 2 0 y e a r s , w h i c h i s t h e m a x i m u m f r a n c h i s e t e r m i n O r e g o n .
T h e C o m p a n y ' s f r a n c h i s e a g r e e m e n t s i n I d a h o f o l l o w a s t a n d a r d 5 0 - y e a r t e r m , w h i c h i s t h e
m a x i m u m t e r m f o r n e w f r a n c h i s e s i n I d a h o . I d a h o P o w e r w o u l d r e c o m m e n d a 2 0 t o 5 0 y e a r
f r a n c h i s e t e r m f o r t h e M c C a l l o r d i n a n c e .
T e l e p h o n e ( 2 0 8 ) 3 2 4 - 2 9 9 3 , F a x ( 2 0 8 ) 3 2 4 - 1 2 2 4
t t
Sections 2. 3 & 4: These sections all include new language regarding the city's
regulation of Idaho Power's facilities and operations. Idaho Power is concerned that this
expanded language could infringe upon the existing authority of the Idaho Public Utilities
Commission over the Company's operations. (Section 7 of the franchise agreement does
acknowledge the authority of the Idaho Commission, but it refers only to Idaho Power's electric
service and the rates and charges therefor. This does not cover the full extent of Idaho Power's
operations that may be subject to the jurisdiction of the Idaho Commission.) To avoid a conflict
with the Idaho Commission's authority, Idaho Power requests that McCall remove its new
language in Sections 2, 3, & 4, as highlighted on the enclosed pages. This would leave the
original language of the Ontario agreement, which provides appropriate guidelines for city
regulation of Idaho Power facilities.
Section 6: Idaho Power wishes to delete the city's new indemnification language
and retain the standard liability provision set forth in the Ontario franchise agreement. That
provision reads:
The Grantee shall at all times indemnify and hold the City, its
officers, employees and agents, harmless from any and all expense
or liability arising from or by reason of any negligent act or
omission of the Grantee, its representatives or employees, in the
construction, operation or maintenance of any of the Grantee's
electric utility property or facilities.
Sections 9. 10. 11 & 12: Idaho Power wishes to delete these sections regarding
franchise fees. Idaho Power does not pay franchise fees to cities in Idaho as proposed in the
McCall ordinance. This is based on Idaho Power's position that Idaho cities do not have the right
to unilaterally impose franchise fees on electric utilities such as Idaho Power. Idaho Power
would accept a franchise fee which is approved by a vote of the citizens of the city, since the
citizens would be responsible for paying the franchise fee as a separately itemized surcharge on
their electricity bills.
Section 15: Idaho Power is willing to accept McCall's additional wording in this
section. However, we would like to add clarifying language to the fmal sentence, so it would read
"In all cases, 60 days' notice shall be required on the part of City or Grantee to reopen the
agreement under this Section."
Section 16: Idaho Power wishes to delete this new section regarding termination
of the franchise agreement. Idaho Power believes that the city has sufficient authority to require
Company compliance under the terms of the Ontario franchise agreement without resorting to the
extreme remedy of termination.
Section 17: Idaho Power wishes to delete this new section which would require
the formal consent of the city for any sale, assignment or lease of the franchise agreement. Such
a consent requirement could create a substantial burden on the Company if required for a
corporate restructuring, merger, etc. (For instance, city approval would have been required for
-2-
Idaho Power's transfer of its state of incorporation from Maine to Idaho in 1989, under the
language of Section 13).
Your October 13, 19941etter also addresses the removal of existing above ground
distribution lines and the discontinuance of placing new distribution lines above ground. Idaho
Power's policy is to relocate existing overhead facilities underground at the expense of the
requesting parry. Similarly, with respect to locating new facilities underground, Idaho Power
requires that the requesting parry pay the differential in cost between the underground facilities
and Idaho Power's standard overhead facilities. Accordingly, if the city of McCall were to
request that Idaho Power bury new facilities or existing overhead facilities, the city would be
required to pay the related costs in advance. (This would be different from a city zoning
ordinance requiring that distribution facilities be placed underground by developers, in which case
the developer would pay the additional costs of underground facilities). Idaho Power's policy for
underground facilities has been applied elsewhere in its service territory and was previously
approved by the Idaho Public Utilities Commission in a case involving the city of Ketchum.
SC:mmb
Please call me at (208) 324-2993 if you would like to discuss this matter further.
Sincerely,
Stan Craven
-3-
ORDINANCE NO.
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328 AND
50-329 GRANTING A NONEXCLUSIVE -FRANCHISE. TO IDAM POWER
COMPANY, A CORPORATION AND TO ITS SUCCESSORS AND. ASSIGNS,
TO CONSTRUCT, MAINTAIN AND OPERATE IN AND UPON THE
PRESENT AND FUTURE STREETS, HIGHWAYS AND. OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OFIrCATI
IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR
SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY,
THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF TWENTY
YEARS; SUBJECTING SUCH ELECTRIC SERVICE TO REGULATION BY
PUBLIC AUTHORITY; PROVIDING FOR PAYMENT TO THE CITY OF
COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND
SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID .FRANCHISE*"
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCCALL ,
IDAHO, THAT:
SECTION 1. The City of McCall , Idaho (hereinafter
called the "City") herebygrants to IDAHO POWER COMPANY,a
corporation, and to its successors and assigns (hereinafter called
the "Grantee") the right, privilege and franchise for a period of
ten (10) years from and after January 1. 1995 , however,
with the right to amend by mutual agreement in accordance with
Section 15, to construct, maintain and operate in and upon the
present and future streets, alleys, highways and other public
places within the corporate limits of the City, electric utility
property and facilities for supplying electricity to the City, and
the inhabitants thereof, and to persons and corporations beyond the
limits of the City, subject to the terms. and conditions hereinafter
specified. In the .case of annexation of property to the corporate
limit, such area will be considered under this agreement, upon
effective date of the annexation. All suchelectric utility
property and facilities now maintained. by the Grantee within the
corporate limits of the City shall be deemed covered by this
ordinance.
SECTION 2. All of the Grantee's electric property and
facilities shall be constructed and at all times maintained in good
order and condition and in accordance with standard engineering
practices and all applicable safety codes and lawful governmental
regulations, Vinclud ng�allconstruct on—staladartg presently in
'e_ftect- i_n�he_Cityao_f McCall r a opted by tth :Cityy. dur bg the?
Efen (`10) -y_ear term granted herein. The City shall have authority
at all times, in furtherance of the safety, convenience and welfare
of the public, to control by appropriate regulations the location,
elevation and manner of construction and maintenance of the
Grantee's electric property and facilities onkthe City streets,
alleys, highways and public places, subject to the provisions of
1
any state or federal law applicable thereto,and the Grantee shall
at all times conform with all such regulations.
SECTION 3. - Uponrequest of the City -the grantee shall
move their facilitfesw-as-nec se sary within the -right o_f�way: This j
costi11 be then respo sib_ -il�ity��f tFe _grantee
SECTION 4. It shall be lawful for the Grantee to make
all needful or convenient excavations in any of the .streets,
alleys, boulevards and thoroughfares of.the .City for the purpose of
erecting and maintaining the posts, poles, tower, or other supports
for its wires or for the purpose of laying, maintaining and
operating wires and other conductors underground for the. purpose
aforesaid, or to repair and improve such electric power and light
system and to extend the same as the growth of said City or the
needs of the inhabitants thereof may require; provided that when
the Grantee, or any person or corporation under the authority of .
this franchise, shall disturb any of said streets, alleys, avenues,
boulevards, thoroughfares or public places for the purposes
aforesaid, he, it or they shall comply with the existing and future
ordinances of the City applicable thereto, and shall restore the
same to good order. and condition as soon as practicable and without
unnecessary delay and failing to do so after five days' notice from
the City, or its duly authorized officer or officers, then the City
may place said street, alley, avenue, boulevard, thoroughfare or
public place in such condition at the cost and expense of the
Grantee, and said Grantee will forthwith pay the full cost and
expense thereof upon demand of the City. al faciarties»)
�consfructed under th =®s dinar e sC hall -be pl cced and maintained -a
such __places and positions in or upon such. public-ways•--and--public7
gl�aces-as s shall; notint
:terfere with the passage of=tiatf c and hi��
ose` of�ad,-j oining_pr_operti, V_and appl_i.Cab_Ie
_1awA-L,_ rules and_r_egulations.1 `tGra`ntee _is�=e-quired to apgly-for andj
�rreceve alI permits as�ffiay-be-requi�e_d�by the Cit_y�-for �ork._in�the
�Ptb i may ;
SECTION 5. The City shall. have the free right and
privilege to string and maintain wires for its municipal police and
fire alarm systems upon the poles and other facilities erected and
maintained by the Grantee hereunder. The City shall string,
maintain and operate such wires at its own expense, risk and
responsibility, and in accordance with all legal requirements and
good engineering practices and in such manner as not to impose any
additional expense upon Grantee of its said poles and facilities.
Any such wires of the City shall be subject to interference by the
Grantee only when necessary in the maintenance, operation or repair
of the Grantee's 'own fixtures, wires, facilities and appurtenances.
SECTION 6. The Grantee shall at all t mes indemnify and
hold the City, its officers, employees and ages, harmless from
any and all claims, causes of action, expense or liability arising
Z
out of, or in any way connected with the. construction, operation or
maintenance of any of the Grantee's electric utility property or
facilities by Grantee and/or Grantee's agents, employees or
representatives. Grantee shall provide an .Idaho public liability
insurance certificate protecting the City under the Idaho tort
claims statute.
SECTION 7. The electric service to be furnished to the
public hereunder, and all rates and charges therefor, and all
regulation of the Grantee applicable thereto, shall at all times be
subject to all rules, regulation and orders that may be lawfully
prescribed by the Public Utility Commission of the State of Idaho
or by any other governmental authority now or hereafter having
jurisdiction over such matters. During the term of this franchise,
the Grantee shall continuously maintain facilities in the City for
convenience to its customers for the payment of bills for electric.
service during the usual office hours.
SECTION 8. When necessary, in order to permit any duly
authorized person to move any building or other structure across or
along any street, alley, avenue, boulevard, or public place within
the City, the Grantee shall temporarily raise or remove its wires,
fixtures and appurtenances upon such street,alley, avenue,
boulevard, thoroughfare or public place, upon seventy-two hours
written notice in advance from such person, such notice to bear the
approval of such official as the City may designate, at such time
and in such manner as may be necessary reasonablyto accommodate
such moving, consistently with the maintenance of proper service to
the Grantee's. customers; provided, however, that the cost to the
Grantee of such temporary raising or removal, and of any
interruption of the Grantee's service to its customers caused
thereby, shall first be paid or satisfactorily secured to. the
Grantee by the owner or mover of such building or other structure.
SECTION 9. As compensation for the right, privilege and.
franchise hereby granted, the Grantee shall pay to the City on or
before the 15th day of each January, April, July and October
following adoption of this ordinance an amount equivalent to three
percent (3%) of the Grantee's "Gross Revenues" for the preceding
quarter. The term "Gross Revenues' as used herein shall mean and
be construed to be the amount of money actually collected from all
sources by the Grantee during the preceding quarter within the
corporate limits of the City. All sums which become delinquent
shall accumulate interest at the statutory rate provided in Idaho
Code Title 28, Chapter 22, Section 104(1). The accrual of interest
is not intended to waive or in any manner restrict City's ability
to elect any procedure or method of collection permissible by law
to enforce all the terms and conditions of this ordinance or the
franchise agreement. In addition, where the 9ity determines by
audit, financial statement or other method, that grantee has
underpaid franchise fees and where payment was not received by the
City within the quarter owed, the grantee may .be required to pay
3
all fees and interest due. and an additional penalty of 25% of the
total amount owed.
Such franchise fee may be listed as a separate item on the
customer's utility, bill.
SECTION. 10. City agrees to follow the notice.
requirements of 63-2224A prior to the approval and commencement of
this franchise agreement.
,SECTION 11. The Grantee shall keep accurate books of
account and the City shall have the right to inspect the same at
all times during business hours, and from time to time audit the
same for the purpose of determining such "Gross Revenues." Such
franchise compensation payments will be .accepted by the City in
lieuof and as payment for any license, privilege or occupation tax
or fee for revenue or regulation now or hereafter to be imposed by
the City upon the Grantee during the term of this franchise;
provided, however, that this section will not be interpreted or be
construed as in any manner exempting the Grantee from paying the.
usual and normal real and personal property taxes to any and all
taxing bodies within the boundaries of which the Grantee functions,
operatesand owns property,. and during the term, hereof the City
will not require the Grantee to pay to the. Cityany additional
license, privilege or occupation tax or fee. The City may require
an auditor's negative assurance statement from Grantee.
SECTION 12. In the event that a franchise fee paid by
another of the City's franchise grantees exceeds the amount paid by
Grantee herein, the franchise fee addressed in this Agreement may
be raised to that level at the discretion of the City.
,SECTION 13. The Grantee shall have theright and
privilege, insofar as the City is able to grant the same, in.
accordance with National Arborist Association standards, of the
trimming of all trees which overnang the streets or public places
in such a manner and to such extent as mill prevent the branches or
limbs or other parts of such trees from touching or interfering
with its wires, poles and other fixtures and equipment; providing,
however, that no such trees will be trimmed or cut back farther
than may be necessary to prevent such interference is to. allow the
proper operation and maintenance of said line poles and fixtures.
However, except in an emergency, no trimming shall be undertaken
without giving the adjacent property owner notice that such
trimming will be performed.
SECTION 14. The Grantee shall maintain and operate a
system for the distribution of electricity in #the City so as to
furnish what shall be known as a twenty-four hour service, but the
Grantee does not guarantee continuous and uninterrupted service
4
under the terms hereof and under no circumstances shall the Grantee
be held liable to or responsible by the City on account of
interruption or failure of service caused by storms, washouts,
accidents, floods, acts of God or the public enemy, war, strikes,
damages by the elements or damage to plant or equipment on account
of any circumstances beyond the control of the Grantee. However,
the Grantee does agree to use due diligence to maintain continuous
and uninterrupted service.
SECTION 15. In the event of an amendment to the laws,
rules or regulations of the City of McCall , the State of Idaho
or the. Public Utility Commission of Idaho applicable to this
franchise, or for periodic review of any section of this agreement
the terms of this franchise and the rights and privileges hereby
conferred may be changed, altered, amended .or modified upon mutual
agreement between the City, and the Grantee. In all cases, 60 days
notice shall be required on the part of City or Grantee to reopen
the. agreement.
SECTION 16. If a grantee willfully violates or fails to
comply with any of the provisions of this franchise, the City shall
give written notice to the grantee of the alleged non-compliance of
it's franchise. The grantee shall have. forty-five (45) days from
the date of notice of non-compliance to cure such alleged default
or, if such default cannot be cured in forty-five (45) days, to
present to the City a plan of action whereby such default. can be
promptly cured.
If such default continues beyond the. applicable dates agreed to for
such cure, the City shall give the grantee written notice that all
rights conferred under this Ordinance and its franchise may be
revoked or terminated by the Council after a public hearing. The
grantee shall be entitled to not less than thirty (30) days prior
notice of the date, time and place of the public hearing. The City
may elect, in lieu of the above and without any prejudice to any of
its other legal rights and remedies, to obtain. an order from the
district court. having jurisdiction compelling grantee to comply
with the provisions of the franchise and recover damages. and costs
incurred by the City by reason of the grantee's failure to comply.
SECTION 17. Sale, assignment or lease of this franchise
is prohibited without the express written consent of the City.
SECTION 18. Inasmuch as the Grantee has constructed and
now is maintaining and operating electric utility property and
facilities in and upon the streets, alleys, avenues, highways,
boulevards, thoroughfares and public places in the City under a
franchise which will expire on July 1. 1994 , it is
hereby adjudged and declared that this ordinance is necessary for
the preservation of the public peace, healthk and safety, and
therefore this ordinance shall take effect on January. 1., 1995.
5
IDAHO POWER COMPANY - CANUtl�
I.F.U.C.`N0. 25, TARIFF N0. 101
SECOND REVISED SHEET N0. 27E
SCHEDULE NO. 71 IDAHO PUBLIC UTILITIES COMMISSION
OVERHEAD AND UNDERGROUND APPROVED EFFECTIVE
DISTRIBUTION LINE EXTENSIONS JUN 14 '91 JUL 1- 91
(cont) `-Q_A. c,•rv. a3-.13a
VIII. REFUNDS (Continued) ,e SECRETARY
4. If the Extension Allowance of an Additional Applicant covers all
applicable payments and still has a remaining balance,
that surplus
will be refunded among issted exhaustedrortallolders on a Connected Load
Vested Interests are fully
basis until the surplus
refunded.
5. Vested Interest refund payments may be waived by notifying the Company
in writing.
C. Refund Limitations
1. Refunds will only be made fOr date connections
Linen Exthensionst rivUpgrade
ars
following the completion
construction.
2. Refunds will not exceed 100 percent of the refundable portion of any
party'.s cash payment to the Company.
IX. LOCAL IMPROVEMENT DISTRICTS
Unless specifically provided for under this
tparagraph, t a LoCal tariff schedulet
District will be provided service.under the generalterms
The Company wilUpro.vide i cost estimate. and ;feasibility stud.O k Local
tzimprovement .1.0ttlaA ith"iti7120.:Edays .,after .receiving :>the : resol_uti.on WfrotiAf e `
,� ,. _
reque:stIng��governinglbody. The cost estimate will be based on Work Order Costs and
Will not be considered binding.on the Company if construction is not commenced
within six months of the submission of the estimate for reasons not within the
control of the Company. The- grrernl9: gr body'� SJU of the'resolUVOMAiMpaanthe
C,ompanyort the � CO.,OA �; of prepari,pg the ,acost.� estimates anda fea s��.hil�it , studp
regar frdless of whether4he;line _Extension eit the t..onie tion :actuallyAttkes .plate:
After passage of the.Local Improvement District ordinance, the Company will
construct the Line Extension or Conversion. Upon completion of the project the
Company. will submit a bill to the Local Improvement District for the actual cost of
the work performed, including the costs of preparing the cost estimate and
feasibility study. • `hf ife letiiTitti tom- ,s; less ahwthe :estimated cost„ the .Loca10
Improvement; District �wilrl pay._3the= .actual cost 'If the `actual costtexceeds .the
estimated cost,.Ati Local.:Imp,ftvemenvzDi-str cttAiii11...pay only;_.�the._estimated:cost.
The:governing body will pay the Company within 30 days after the bill has been
submitted.
A Local Improvement District will be eligible for -an Extension Allowance .for
any new load connecting for service upon the completion.of the Line Extension. A
Local Improvement District will retain a Vested Interest in any Line Extension to
the Local ImprovementDistrict. A Local Improvement District may waive payments for
Vested Interest from Additional Applicants within the Local Improvement District.
JAHO Issued by IDAHO POWER COMPANY
Issued May 20,.1991 D. H. Jackson, Vice President, Distribution
1220 Idaho Street, Boise, Idaho
Effective - July 1, 1991
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 344.8677
November 3, 1994
To: Cities Served by Idaho Power
Fr: Scott McDonald
Re: Update
There are several attachments to which immediate attention should be paid. The first
document is the minutes of our last meeting with Idaho Power. We left this meeting
with the feeling that they would be willing to work with us on a compromise to an
election. We also made several changes to our draft ordinance at their request, which
is attached to .the minutes. We have also sent the draft ordinance to Washington
Water Power and Utah Power and Light for their comments.
However, three days later, Idaho Power proceeded to hand out information on their
own at a seminar attended by several cities. Please note my subsequent memo to the
Board with supporting documentation. It is important that you review all of this
information.
We have identified thirteen cities so far whose franchises are either expired, or who
currently do not have a franchise with Idaho Power. Several of those cities have
tentatively agreed to look at the simultaneous passage of a franchise ordinance calling
for franchise fees. Based upon Idaho Power's actions, it is our conclusion that the
only way this will be settled is through the court process.
Some City Council's have decided to go ahead for renewal without the franchise fee
at this time. Please be aware that the City of Payette has language in their franchise,
approved by Idaho Power that allows the imposition of franchise fees in the future
(attached). If you are a city that is proceeding, we strongly urge you to get this
language in your agreement so that you do not eliminate this option in the future.
Finally, please note that if it is your intent to begin negotiations on a utility franchise,
the Idaho Code 50-341 does require than franchises go through the formal bidding
process. Please remember to do this prior to entering into any agreements.
We will be providing further information as the thirteen cities develop a strategy on
which to proceed.
OFFICERS
President
Paul Agidius
Mayor, Moscow
First Vice President
Winston Goering
Mayor. Nampa
Second Vice President
Kirk Hansen
Mayor, Soda Springs
Third Vice President
Brent Coles
Mayor, Boise
Legislative Chairperson
Paula Fomey
Councilmember. Boise
Immediate Past President
Karen McGee
Councilmember. Pocatello
Executive Director
Scott B. McDonald
DIRECTORS
James Hammond
Mayor. Post Falls
Susan Johnson
Councilmember, Sandpoint
Lovetta Eisele
Councilmember, Lewiston
Laura Booth
Councilmember. Orofi no
Tad Freeman House
Mayor. Cascade
Ban Westberg
Councilmember. Weiser
Max Yerrington
Councilmember. Meridian
Ted Ellis
Mayor, Garden City
Chuck Geska
Councilmember. Buhl
David Adair
Mayor. Gooding
Gregory Anderson
Councilmember, Pocatello
J. Walter Ross
Mayor. Preston
John Walker
Mayor. Challis
James Flamm
Councilmember, Rexburg
ACTIVE PAST PRESIDENTS
Dixie Reid
Councilmember, Coeur d'Alene
Gram Kingsford
Mayor. Meridian
Harold Sims
Mayor, Bonners Ferry
John O. Cotant. Jr.
A1ayor. Chubbuck
Tim Ridinger
Mayor. Shoshone
Printed on Recycled Paper L
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 344-8677
MINUTES
Idaho Power Franchise Meeting
October 19, 1994
The meeting was begun at 10 am at the Twin Falls City Hall. Cities represented included
Hollister, Hagerman, Buhl, Boise, Pocatello, Hailey, Ketchum, and Mountain Home. The first part
involved discussions on other information that the cities should have in making their decision to
pursue a franchise fee with Idaho Power. This information includes:
1) What cities in Idaho have their own electric system and what revenues do they
see from that operation.
2) What franchise fees do the other electrical utilities pay in Idaho
3) Comparison of rates (kilowatt hours) paid in idaho versus regionally
After this and other information is compiled, it needs to be put in an information packet for the
cities.
During the second half of the meeting, representatives from Idaho Power were present. Rich
Halm and Pat Harrington were present. The conversation dealt with Idaho Power's position
stating that an election of the people approving the franchise fee would be needed before they
would agree. The general discussion centered on a non -binding survey of the citizen's that would
be prepared by a third party. Information on the issue would be jointly prepared to be fair to
both groups and public meetings would also be held. Idaho Power representatives requested that
they get this proposal in writing including these points and that they would consider it.
The group then discussed the other wording changes requested by Idaho Power in the document.
A draft ordinance is attached reflecting these changes. The meeting was adjourned at 2:35 pm.
Printed on Recycled Paper
10/25/94
ORDINANCE NO.
I
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328 AND1
50-329 GRANTING A NONEXCLUSIVE FRANCHISE TO IDAHO POWER
COMPANY, A CORPORATION AND TO ITS SUCCESSORS AND ASSIGNS,
TO CONSTRUCT, MAINTAIN AND OPERATE IN AND UPON THE
PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF ,
IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR
SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY,
THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF TEN
YEARS; SUBJECTING SUCH ELECTRIC SERVICE TO REGULATION BY
PUBLIC AUTHORITY; PROVIDING FOR PAYMENT TO THE CITY OF
COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND
SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID FRANCHISE."
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
IDAHO, THAT:
SECTION 1. The City of , Idaho (hereinafter
called the "City") hereby grants to IDAHO POWER COMPANY, a
corporation, and to its successors and assigns (hereinafter called
the "Grantee") the right, privilege and franchise for a period of
ten (10) years from and after , however,
with the right to amend by mutual agreement in accordance with
Section 15, to construct, maintain and operate in and upon the
present and future streets, alleys, highways and other public
places within the corporate limits of the City, electric utility
property and facilities for supplying electricity to the City, and
the inhabitants thereof, and to persons and corporations beyond the
limits of the City, subject to all ordinances and regulations of
the city and to the terms and conditions hereinafter specified. In
the case of annexation of property to the corporate limit, such
area will be considered under this agreement, upon effective date
of the annexation. All such electric utility property and
facilities now maintained by the Grantee within the corporate
limits of the City shall be deemed covered by this ordinance.
SECTION 2. All of the Grantee's electric property and
facilities shall be constructed and at all times maintained in good
order and condition and in accordance with standard engineering
practices and all applicable safety codes and lawful governmental
regulations, including all construction standards presently in
effect in the City of or adopted by the City during the
ten (10) year term granted herein. The City shall have authority
at all times, in furtherance of the safety, convenience and welfare
of the public, to control by appropriate regulations the location,
1
elevation and manner of construction, maintenance and operation of
the Grantee's electric property and facilities on the City streets,
alleys, highways and public places, subject to the provisions of
any city ordinance, state or federal law applicable thereto, and
the Grantee shall at all times conform with all such regulations.
SECTION 3. Upon request of the City the grantee shall
move their facilities as necessary within the right of way. This
cost will be the responsibility of the grantee.
SECTION 4. It shall be lawful for the Grantee to make
all needful or convenient excavations and/or installations in any
of the streets, alleys, boulevards and thoroughfares of the City
for the purpose of erecting and maintaining the posts, poles,
tower, or other supports for its wires or for the purpose of
laying, maintaining and operating conduits, vaults and wires and
other conductors underground for the purpose aforesaid, or to
repair and improve such electric power and light system and to
extend the same as the growth of said City or the needs of the
inhabitants thereof may require; provided that when the Grantee, or
any person or corporation under the authority of this franchise,
shall disturb any of said streets, alleys, avenues, boulevards,
thoroughfares or public places for the purposes aforesaid, he, it
or they shall comply with the existing and future ordinances of the
City applicable thereto, and shall restore the same to good order
and condition as soon as practicable and without unnecessary delay
and failing to do so after five days' notice from the City, or its
duly authorized officer or officers, then the City may place said
street, alley, avenue, boulevard, thoroughfare or public place in
such condition at the cost and expense of the Grantee, and said
Grantee will forthwith pay the full cost and expense thereof upon
demand of the City. All facilities constructed under this
ordinance shall be placed and maintained at such places and
positions in or upon such public ways and public places as shall
not interfere with the passage of traffic, and shall conform to all
applicable laws, rules and regulations.' Grantee is required to
apply for and receive all permits as may be required by the City
for work in the public way.
SECTION 5. The City shall have the free right and
privilege to string and maintain wires for its municipal services
upon the poles and other facilities erected and maintained by the
Grantee hereunder. The City shall string, maintain and operate
such wires at its own expense, risk and responsibility, and in
accordance with all legal requirements and good engineering
practices and in such manner as not to impose any additional
expense upon Grantee of its said poles and facilities. Any such
wires of the City shall be subject to interference by the Grantee
only when necessary in the maintenance, operation or repair of the
Grantee's own fixtures, wires, facilities and appurtenances.
2
franchise agreement. In addition, where the City determines by
audit, financial statement or other method, that grantee has
underpaid franchise fees and where payment was not received by the
City within the quarter owed, the grantee may be required to pay
all fees and interest due and an additional penalty of 25% of the
total amount owed.
Such franchise fee may be listed as a separate item on the
customer's utility bill.
SECTION 10. City agrees to follow the notice
requirements of 63-2224A prior to the approval and commencement of
this franchise agreement.
SECTION 11. The Grantee shall keep accurate books of
account and the City shall have the right to inspect the same at
all times during business hours, and from time to time audit the
same for the purpose of determining such "Gross Revenues." Such
franchise compensation payments will be accepted by the City in
lieu of and as payment for any license, privilege or occupation tax
or fee for revenue or regulation now or hereafter to be imposed by
the City upon the Grantee during the term of this franchise;
provided, however, that this section will not be interpreted or be
construed as in any manner exempting the Grantee from paying the
usual and normal real and personal property taxes to any and all
taxing bodies within the boundaries of which the Grantee functions,
operates and owns property, and during the term hereof the City
will not require the Grantee to pay to the City any additional
license, privilege or occupation tax or fee. The City may require
an auditor's negative assurance statement from Grantee.
SECTION 12. The Grantee shall have the right and
privilege, insofar as the City is able to grant the same, in
accordance with National Arborist Association standards, of the
trimming of all trees which overhang the streets or public places
in such a manner and to such extent as will prevent the branches or
limbs or other parts of such trees from touching or interfering
with its wires, poles and other fixtures and equipment; providing,
however, that no such trees will be trimmed or cut back farther
than may be necessary to prevent such interference and to allow the
proper operation and maintenance of said line poles and fixtures.
However, except in an emergency, no trimming shall be undertaken
without giving the adjacent property owner notice that such
trimming will be performed.
SECTION 13. The Grantee shall maintain and operate a
system for the distribution of electricity in the City so as to
furnish what shall be known as a twenty-four hour service, but the
Grantee does not guarantee continuous and uninterrupted service
under the terms hereof and under no circumstances shall the Grantee
be held liable to or responsible by the City on account of
4
SECTION 6. The Grantee shall at all times indemnify and
hold the City, its officers, employees and agents, harmless from
any and all claims, causes of action, expense or liability arising
out of, or in any way connected with the construction, operation or
maintenance of any of the Grantee's electric utility property or
facilities by Grantee and/or Grantee's agents, employees or
representatives. Grantee shall provide an Idaho public liability
insurance certificate protecting the City under the Idaho tort
claims statute.
SECTION 7. The electric service to be furnished to the
public hereunder, and all rates and charges therefor, and all
regulation of the Grantee applicable thereto, shall at all times be
subject to all rules, regulation and orders that may be lawfully
prescribed by the Public Utility Commission of the State of Idaho
or, by any other governmental authority now or hereafter having
jurisdiction over such matters. During the term of this franchise,
the Grantee shall continuously maintain facilities in the City for
convenience to its customers for the payment of bills for electric
service during the usual office hours.
SECTION 8. When necessary, in order to permit any duly
authorized person to move any building or other structure across or
along any street, alley, avenue, boulevard, or public place within
the City, the Grantee shall temporarily raise or remove its wires,
fixtures and appurtenances upon such street, alley, avenue,
boulevard, thoroughfare or public place, upon seventy-two hours
written notice in advance from such person, such notice to bear the
approval of such official as the City may designate, at such time
and in such manner as may be necessary reasonably to accommodate
such moving, consistently with the maintenance of proper service to
the Grantee's customers; provided, however, that the cost to the
Grantee of such temporary raising or removal, and of any
interruption of the Grantee's service to its customers caused
thereby, shall first be paid or satisfactorily secured to the
Grantee by the owner or mover of such building or other structure.
SECTION 9. As compensation for the right, privilege and
franchise hereby granted, the Grantee shall pay to the City on or
before the 15th day of each January, April, July and October
following adoption of this ordinance an amount equivalent to three
percent (3%) of the Grantee's "Gross Revenues" for the preceding
quarter. The term "Gross Revenues" as used herein shall mean and
be construed to be the amount of money actually collected by the
grantee from it's customers for light, heat, power and electric '-
energy consumed during the preceding quarter within the corporate C.nailTe_
limits of the City. All sums which become delinquent shall lvi J
accumulate interest at the statutory rate provided in Idaho Code definifin
Title 28, Chapter 22, Section 104(1). The accrual of interest is
not intended to waive or in any manner restrict City's ability to
elect any procedure or method of collection permissible by law to
enforce all the terms and conditions of this ordinance or the
interruption or failure of service caused by storms, washouts,
accidents, floods, acts of God or the public enemy, war, strikes,
damages by the elements or damage to plant or equipment on account
of any circumstances beyond the control of the Grantee. However,
the Grantee does agree to use due diligence to maintain continuous
and uninterrupted service.
SECTION 14. In the event of an amendment to the laws,
rules or regulations of the City of , the State of Idaho
or the Public Utility Commission of Idaho applicable to this
franchise, or for periodic review of any section of this agreement
the terms of this franchise and the rights and privileges hereby
conferred may be changed, altered, amended or modified upon mutual
agreement between the City and the Grantee. In all cases, 60 days
notice shall be required on the part of City or Grantee to reopen
the agreement pursuant to this section. n e1,3
SECTION 15. If a grantee willfully violates or fails to
comply with any of the provisions;,of this franchise, the City shall
give written notice to the grantee of the alleged non-compliance of
it's franchise. The grantee shall have forty-five (45) days from
the date of notice of non-compliance to cure such alleged default
or, if such default cannot be cured in forty-five (45) days, to
present to the City a plan of action whereby such default can be
promptly cured.
If such default continues beyond the applicable dates agreed to for
such cure, the City shall give the grantee written notice that all
rights conferred under this Ordinance and its franchise may be
revoked or terminated by the Council after a public hearing. The
grantee shall be entitled to not less than thirty (30) days prior
notice of the date, time and place of the public hearing. The City
may elect, in lieu of the above and without any prejudice to any of
its other legal rights and remedies, to obtain an order from the
district court having jurisdiction compelling grantee to comply
with the provisions of the franchise and recover damages and costs
incurred by the City by reason of the grantee's failure to comply
Fbwer-
to
froc_ io _
iar74X
SECTION_16. Sale, assignment or lease of this franchise
is prohibited without the express written consent of the City.
Consent will not be withheld as long as the new owner, assignee or
leasee agrees in writing to abide by the terms and conditions of ��
this franchise agreement and that there has been no prior default
by Idaho Power.
SECTION 17. Inasmuch as the Grantee has constructed and
now is maintaining and operating electric utility property and
facilities in and upon the streets, alleys, avenues, highways,
boulevards, thoroughfares and public places in the City under a
franchise which will expire on , it is
hereby adjudged and declared that this ordinance is necessary for
the preservation of the public peace, health and safety, and
5
therefore this ordinance shall take effect on
PASSED AND ADOPTED by the Council of the City of
this day of
APPROVED by the Mayor this day of
ATTEST:
Mayor
6
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 344-8677
MEMORANDUM
October 28, 1994
TO: AIC Legislative Committee/AIC Board
FROM: Scott B. McDonald, Executive Director
SUBJECT: Electrical Franchise Fees
AIC and selected cities have met. with representatives of
Idaho Power on three occasion to negotiate a model
franchise agreement that includes a 3% franchise fee.
The most recent negotiating session occurred on October
19 in Twin Falls. Changes to the ordinance were agreed
to in that meeting. There were some issues, however,
that both sides agreed to continue to work on to reach
resolution.
The use of an advisory ballot by the city residents is
the major stumbling block. Enclosed is the ballot
mailed by Idaho Power to Nampa rate payers in 1970. By
the third reading, the Nampa City Council lost support
for their franchise ordinance.
AIC firmly opposed the use of such an advisory ballot
during our meeting with Idaho. Power. As a compromise, we
offered to cosponsor a mailing desribing the pros and
cons of franchise fees to citizens. The cities would
write the "pro" portion, and Idaho Power would write the
"con" portion. Additionally, if desired, a multiple
choice survey of several fiscal alternatives could be
professionally written and independently administered as
an alternative for the more populated cities.
On Friday, October 21, Idaho Power moved ahead
unilaterally with their own public information campaign
on franchise fees. (See enclosure entitled "Idaho Power
Information Sheet - Utility Franchise Fees"). This
action indicates that Idaho Power intends to limit the
process of clarifying Idaho code as it relates to cities
franchise authority. Their stated goal is to legislate
the following:
OFFICERS
President
Paul Agidius
Mayor. Moscow
First Vice President
Winston Goering
Mayor. Nampa
Second Vice President
Kirk Hansen
Mayor, Soda Springs
Third Vice President
Brent Coles
Mayor, Boise
Legislative Chairperson
Paula Fomey
Councilmember, Boise
Immediate Put President
Karen McGee
Councilmember. Pocatello
Executive Director
Scott B. McDonald
DIRECTORS
James Hammond
Mayor. Post Falls
Susan Johnson
Councilmember. Sandpoint
Loveua Eisele
Councilmember. Lewiston
Laura Booth
Councilmember. Orofino
Tad Freeman House
Mayor. Cascade
Ban Westberg
Councilmember. Weiser
Max Yerrington
Councilmember. Meridian
Ted Ellis
Mayor. Garden City
Chuck Geska
Councilmember, Buhl
David Adair
Ma) or. Gooding
Gregor) Anderson
Councilmember. Pocatello
J. Walter Ross
Mayor. Preston
John Walker
Mayor, Challis
James Flamm
Councilmember. Rexburg
ACTIVE PAST PRESIDENTS
Dixie Reid •
Councilmember. Coeur d'Alene
Grant Kingsford
Mayor. Meridian
Harold Sims
?layor. Bonner) Ferry
John O. Cotant. Jr.
Ma) or. Chubbuck
Tim Ridinger
Mayor. Shoshone
Idaho Power Legislative Goals re: Franchise Fees
- electrical utility franchise fees must be approved by a
majority of the city residents voting in an election.
- the fees shall not exceed 3 percent of the revenues
collected by an electrical utility from its customers within a
city.
- Idaho Public Utilities Commission shall review and approve
all electrical utility franchise agreements which include fees
before they become effective.
- The term of the franchise agreement between the electrical
utility and the city shall not be less than 20 years nor more
than 50 years.
Recommendation: AIC should oppose any legislation that changes
(limits) cities, existing authority to impose electrical
franchise fees. AIC should proceed to support the adoption of
the model ordinance by cities in Southwestern Idaho. This
assumes a) city elected officials can withstand any political
pressure generated by Idaho Power and b) a court case will settle
the issue between Idaho Power and several cities supported by
AIC.
Further, the "model" ordinance should be mailed to Washington
Water Power and Utah Power & Light for their review and
recommended changes. All changes by these two companies should
be seriously considered for accommodation since they are
currently cooperating with the collection of franchise fees in
their service areas.
4,0 iimpotqtamt Notice
Enclosed is an opportunity for you
to express your opinion concerning a pro-
posed new tax which would apply only
to Nampa electric users.
SEVERN, RIPLEY, DOORN & HANSON
Certified Public Accountants
P. O. Box 446
Nampa, Idaho 83651
ERNEST E ATARR
NAMPA7IDAHO N83651
Bulk Rate
U. S. POSTAGE
PAID
Permit No. 11
NAMPA, IDAHO
BUSINESS REPLY CARD
First Class Permit No. 21 Nampa, Idaho
SEVERN, RIPLEY, DOORN & HANSON
Certified Public Accountants
P.O. Box 446
Nampa, Idaho 83651
No
Postage Stamp
Necessary
If Mailed In the
United States
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IDAHO POWER COMPANY
Nampa, Idaho
Dear Idaho Power Company Customer:
Idaho Power Company is sponsoring a survey of its customers in
the City of Nampo to determine if they favor a 3 % tax on their power
bills.
Idaho Power believes that you —its customer —should have the
opportunity to express your opinion on this important matter before
final action is taken by the Nampa city council. The attached ballot
is being provided so you may indicate whether you approve or dis-
approve of the proposed new tax.
This is an unofficial survey for informational purposes only. Note
totals only will be made public.
It is Idaho Power's belief that you should know the following facts
about the proposed tax:
1. The tax is proposed in an ordinance read for the first time at the
Nampa city council meeting November 15. If the ordinance is approved
on the second and third readings —December 6 and 20—the tax could
become effective next January 1.
2. This is a new tax that would be added to your power bill.
3. It would increase the cost of electric service for you and every
other user in the City of Nampa by 3%.
4. You would not have the opportunity to vote on whether you wish
to pay the tax.
5. This is a tax on City of Nampa residents only. No other city in
the state served by Idaho Power has imposed a similar tax.
6. Northwest Nazarene College's electric bill would increase by more
than $1,300 annually and the bills of Nampa public schools, already
burdened by high budgets, would be increased substantially.
7. New businesses and industries considering Nampa as a location
might go outside the city limits to avoid the higher cost of electricity in
the city. This would slow Nampa's economic growth and deprive it of
additional payrolls and property taxes.
8. Nampo businesses and industries would be at an economic dis-
advantage in competing with those outside the city.
Please vote on the accompanying ballot, detach and mail it promptly.
In order to assure an impartial survey, 'we have employed the Nampa
certified public accounting firm of Severn, Ripley, Doorn & Hanson to
conduct it and tabulate the results. Thank you.
Very truly yours,
George L. Elliott
Nampa District Manager
saris a
Here's My Unofficial Vote
As an Idaho Power Company customer living within the
City of Nampa, do you favor the proposed 3 % electric franchise
tax?
❑ YES
❑ NO
NO POSTAGE IS REQUIRED. Please mark your ballot and
mail it promptly. Thank you for your courtesy.
PRESS RELEASE
The annual cost for street lighting in our city now costs in excess
of $123,000 per year. It is paid for with revenue from property taxes.
Tax exempt property and those people who do not own property are
exempt from participating in this cost. For this reason the city admin-
istration is planning to impose a 3% franchise fee on Idaho Power for
use of public streets and alleys for the transmission of their power.
This will be the same fee that is now being paid by Intermountain Gas
Company for the use of public rights -of -way. Because both companies
are competitors it has been unfair to charge the fee with one company
without charging the other.
The revenue from the fee with Idaho Power will be used to pay for
the cost of street lighting. If there is any surplus it will be divided
equally between the budgets for the police and fire departments. This
will bring about a large saving to the real property owners in our city.
A residence that now pays a power bill of $25.00 will pay an additional
750 a month with the franchise fee. The bulk of the revenue would
come from the larger users such as business and industry. Tax exempt
property such as fraternal organizations would also pay their pro-
portionate share.
Practically everyone in the city benefits from street lighting and
police and fire protection. This proposed fee would make it possible
for everyone to participate instead of leaving all the burden to the
people who pay property taxes.
Ernest E. Starr
MAYOR
City of Nampa
EES : cmb
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ELECTRICAL FRANCHISE FEES
VS
PROPERTY TAXES
Franchise Fees
Property Taxes
S.
I. WHO PAYS FEES?
Residents, businesses, government - (city, county,
schools, state and federal) - churches and other non-
profit private organizations within the city's bound-
ary utilizing city streets and police, thus spreading
the fee to a broader base of rate payers.
1. ABILITY TO PAY FEES
A charge added to consumption of a product with the
ability to apply conservation practices to reduce the
amount of fees.
3. EASE OF ADMINISTRATION
Pay monthly with utility bill with Idaho Power
remitting every four months.
4. LEVEL PLAYING FIELD
Idaho Power's major competitor, Intermountain Gas,
currently pays a 3 percent franchise fee. For cities to
continue to impose a 3 percent fee on gas it must
impose a 3 percent fee on electrical or be in violation
of a provision of Idaho's constitution requiring a
uniformity upon persons and property.
Washington Water Power and Utah Power & Light
pay electrical franchise fees to Idaho cities in their
service areas.
Idaho Power pays a 3 percent franchise fee to the
City of Ontario, Oregon.
The City of Payette's franchise agreement negotiated
with Idaho Power in.1970 contains the provision for
Payette to charge a fee in the future.
1. WHO PAYS TAXES?
Only property owners, those living in the city
and using city services as well as absentee
property owners who do not use city services,
pay property taxes. There are a multitude of
governmental entities and charitable organiza-
tions who are exempt from paying any property
taxes who benefit from city services. These
entities and organizations would be required to
pay a franchise fee as part of their electrical
bill.
2. ABILITY TO PAY TAXES
A charge based upon value with no ability to
control acceleration increases in assessed
valuation.
3. EASE OF ADMINISTRATION
Pay every six months with the county remitting
every six months.
4. LEVEL PLAYING FIELD
Both utilities - electric and gas - pay property
taxes as do Albertsons or any other business in
the city.
Utilities are a class of business that need the
cities' right-of-ways to carry on their function.
Utilities want city snow plows to be able to
access downed utility lines due to inclement
weather to restore services.
r ' i
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
PRESS RELEASE
FOR I� RELEASE Contact: Scott McDonald
October 5, 1995 344-8594
Electrical ranchise Fees vs Property Tax
Idaho cities are seeking to ease some of the burden placed on the property tax by requiring Idaho
Power to pay a fee to the cities as part of their franchise agreements. Public utility companies
doing business in a city usually do so under the terms of a franchise granted by the city. The
franchise normally states the obligations the utility has to the city in return for the privilege of
installing and maintaining utility equipment on public property.
The franchise fee is the .compensation to be paid for this privilege and for the inconvenience and
expense to the city caused by the presence of this equipment on the public streets and in conduits
under the public ways. In cases where a franchise fee provision is not included in the agreement,
the city must turn to the property tax to cover expenses created by the presence of the utility.
Idaho Power's major competitor, Intermountain Gas, currently pays 3 percent of its gross receipts
to cities in the form of a franchise fee. For cities to continue imposing this fee on gas it must
impose the same fee on electrical services or be in violation of a provision of Idaho's constitution
requiring a uniformity upon persons and property. Idaho Power currently pays a franchise fee
of 3 percent of its receipts to the neighboring City of Ontario, Oregon. Idaho Power has never
paid a franchise fee to its Idaho cities.
It is Idaho Power's contention that Idaho Code is vague on the authority of cities to collect a fee
- attorneys for AIC and affected cities do not agree. As the 50 year franchise agreements expire
between many Idaho cities and Idaho Power, cities will be negotiating a 3 percent franchise fee
on the electric utility as part of the renewal process.
Cities contend that a franchise fee would spread the cost of utility maintenance within cities'
right-of-ways to a broader base of utility rate payer. The cost would be spread to all utility users
rather than having the expense fall solely on the property owners. There are a multitude of
government organizations who are exempt from paying any property taxes but benefit from city
services.
- more -
1
The cities in Idaho that receive electrical service from Washington Water Power or Utah Power
& Light are currently collecting franchise fees from these two major electrical utilities.
Washington Water Power
Coeur d"Alen 5%
Worley 3%
Orofino 3%
Post Falls .25%
Utah Power % Light
Paris 3%
Bloomington 10%
DuBois 10%
Rigby 3%
Rexburg 6% (up from 2% as of 10/1/94)
Iona 3%
Ririe 3%
###
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
Idaho Power Information Sheet
Utility Franchise Fees
Q: What is a franchise?
A: Municipal franchises authorize utilities or other
service providers to utilize a city's streets and alleys for the
location of equipment and facilities. In Idaho Power's case,
this pertains to the electrical equipment necessary to provide
an essential service. Franchise agreements may also restrict
the city's right to compete with a utility's service to city
residents.
Franchises don't grant Idaho Power the right to serve
customers. The Idaho Public Utilities Commission grants that
right.
Q: What is a franchise fee?
A: It's a fee or tax charged to the utility or business by
the city, usually based on a percentage of the service
provider's gross revenues within the city.
Q: Does Idaho Power pay
franchise fees in Idaho?
A: No. The company believes that under Idaho law,
cities are not authorized to impose franchise fees on electric
utilities such as Idaho Power. The company does not pay fees
under any of its existing Idaho franchise agreements, which
have been in place up to 50 years.
Q: Who would pay the fee?
A: Ultimately, the company's customers would. The
Idaho Public Utilities Commission has ruled that franchise
fees will be billed to a utility's customers within the area or
locality in which the fee applies and appear as a separate item
on customers' bills.
Idaho Power would serve in an administrative role by
collecting the fees and turning the revenues over to the city.
Q: Does Idaho Power oppose
franchise fees?
A: Under certain terms and conditions, Idaho Power
would not oppose franchise fees. Chief among them is a pro-
vision to allow customers a voice in the imposition of such
fees.
Q: How would customers' voices
be heard?
A: Idaho Power supports providing all city resi-
dents an opportunity to vote on franchise fees at a public
election. No franchise fee should be imposed upon an
electric utility's customers without majority approval.
Q: Specifically, what conditions
does Idaho Power believe are
necessary?
A: Idaho Power would not oppose changes to -state
law governing franchise fees if the legislation included
the following:
• Electric utility franchises fees must be approved
by a majority of city residents voting in an election.
• Franchise fees shall be set forth as a separate item
on each customer's electric utility bill.
• The fees shall not exceed 3 percent of the reve-
nues collected by an electric utility from its customers
within the city limits.
• The Idaho Public Utilities Commission shall
review and approve all electric utility franchise agree-
ments which include fees before they become effective.
• The term of the franchise agreement between the
electric utility and the city shall not be less than 20 nor
more than 50 years.
Absent a change to state law, Idaho Power would
be willing to consider a franchise agreement with a city
provided it included these provisions.
Q: What can a customer do
about the franchise fee issue in
his or her community?
A: Idaho Power encourages all of its customers to
leam as much as possible about the issue and share their
thoughts and concerns with their local representatives and
government officials. Idaho Power employees welcome
the opportunity to visit with customers and discuss this
and any other company -related issue. Feel free to call
your local Idaho Power office.
" , O R D I N A N C E N O . _ Q z
. _ "
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4 1
Section 10. The Grantee hAe constructed and ntiO is thaintaining operating
00000011°:°°111
electric utility ptopetty and fdcilities in and upon the
streets, alleys; avenues, hiehwAys; bhulevatds; thotoughfates and pUhlic
places in the City under a f ratichise -Otdinahte Nd.g4_; which will expire on
Jules_�, 1980 ; and both the Grantee And the City desire to revoke
Ordinance yn: A:effective aA of the end bf the day do _August _ 5 ,
•
1920_, and . tb have the new franchise be ih fdred and effect on Auguat___ b ,
1922_4 It 16 heirpby Ad ridged afid deciatedAhat thlb dfdinance is necessary
for the immediate ptedervatioh df the public peace,..hedith and Safety, and .
franchise Ordinance kdt 384 iA tfii)oked ad $i` iQ�, i?•Mi August _5_+ •
1970 ., and this ordinance 1;1;611 take effect and bp: ih full force and effect
upon .august___6_+ 19..2.0_• •
Passed by► the City CoUhtil a the,City of Fayette, Payette_County,
.Idaho, on the _$d day bf Augut • , 1970;
WITNESS:
,
Clerk of the City of ayette; Idaho
Mayor of tie city of 'ayOtte, Idaho . `4
• 4"'. ...14
Form B (Additional Insured)
Certificate Number: No. 58462
ASSOCIATED ELECTRIC & GAS INSURANCE SERVICES LIMITED
Hamilton, Bermuda
CERTIFICATE OF INSURANCE
(Excess Liability)
This Certificate is furnished to the Certificate Holder named below as a matter of information only. Neither
this Certificate nor the issuance hereof modifies the policy of insurance identified below (the "Policy") in
any manner. The Policy terms are solely as stated in the Policy or in any endorsement thereto. Any
amendment, change or extension of the Policy can only be effected by a specific endorsement issued by
the Company and attached to the Policy.
The undersigned hereby certifies that the Policy has been issued by Associated Electric & Gas Insurance
Services Limited (the "Company") to the Named Insured identified below for the coverage described and
for the policy period specified.
Notwithstanding any requirements, terms or conditions of any contract or other document with respect to
which this Certificate may be issued or to which it may pertain, the insurance afforded by the Policy is
subject to all of the terms of the Policy.
NAME OF INSURED: Idaho Power
Company
PRINCIPAL ADDRESS: PO Box 70, Boise ID 83707-0070
POLICY POLICY From: 07/15/97
NUMBER: X0167A1A97 PERIOD: To: 07/15/00
RETROACTIVE DATE: 07/15/86
DESCRIPTION Claims -First -Made Excess Liability Policy covering claims for Bodily Injury, Property
OF COVERAGE: Damage and Personal Injury arising from the operations described below.
LIMIT OF
LIABILITY: $ 1,000,000 per occurrence and in the aggregate, where applicable
ADDITIONAL The Certificate Holder is an additional Insured under the Policy but only (i) to such
INSURED: extent and for such Limits of Liability (subject always to the terms and Limits of
Liability of the Policy) as the Named Insured has agreed to provide insurance for
the Certificate Holder under the following contract:
Regarding franchise agreement between City of McCall and Idaho Power
Company
and (ii) with respect to the following operations:
All operations performed by !daho Power Company
Should the Policy be cancelled, assigned or changed in a manner that is materially adverse to the
Insured(s) under the Policy, the undersigned will endeavor to give 30 days advance written notice
thereof to the Certificate Holder, but failure to give such notice will impose no obligation or liability
of any kind upon the Company, the undersigned or any agent or representative of either.
DATE:
ISSUED TO:
ADDRESS:
October 22, 1997
City of McCall
Attn: City Clerk
216 East Park Street
McCall, Idaho 83638
This contract is issued pursuant to the Idaho Insurance
Laws by an insurer neither licensed by nor under the
jurisdiction of the Idaho Department of Insurance.
License No. 18460.
BY.
("Certificate Holder")
AEGIS INSURANCE SERVICES, INC.
At Jersey City, New Jersey
9002 (8/87)
MAIL
NOTICE
FINAL DELINQ
DATE REPORT
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PREPARE MTR RDG BILLING MAIL (PAST) PREPARE MAIL
MTR RTS DATE DATE BILLS DUE NOTICE NOTICE
FINAL DELINQ
DATE REPORT
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{,1'1:14H0
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
November 2, 1994
Gary P. Shimun
City Manager
City of McCall
216 East Park Street
P.O. Box 1065
McCall, ID
STAN CRAVEN
District Manager
Re: Idaho Power Franchise Agreement with City of McCall
Dear Mr. Shimun:
Idaho Power has reviewed the proposed franchise agreement forwarded by the City
of McCall. Idaho Power would prefer to follow its standard one -page franchise agreement for
Idaho cities, which clearly and concisely covers the important elements of a franchise.
Nonetheless, we believe that an agreement can be reached based on your proposed franchise form,
with several modifications.
The city of McCall's proposed franchise agreement appears to be based on Idaho
Power's existing franchise agreement with the city of Ontario, Oregon, with a number of revisions
added by McCall.. In this regard, it is important to note that the Ontario ordinance represents a
finalized agreement negotiated by Ontario and the Company, after give and take from both sides.
Considering this fact, Idaho power is reluctant to agree to additional concessions in the franchise
agreement, which is evenly balanced to begin with. It should be also noted that, with respect to
franchise fees, the Ontario ordinance was executed under Oregon's statutes and regulations, which
expressly authorize Oregon cities to impose franchise fees upon electric utilities (see Oregon
Revised Statutes §§ 221.410 - 221.470 and Oregon Administrative Rules § 860-22-040). With
this in mind, the Company has the following comments on the McCall franchise agreement:
Section 1: The McCall franchise ordinance states a term of ten years. The
Ontario ordinance states a term of 20 years, which is the maximum franchise term in Oregon.
The Company's franchise agreements in Idaho follow a standard 50-year term, which is the
maximum term for new franchises in Idaho. Idaho Power would recommend a 20 to 50 year
franchise term for the McCall ordinance.
Telephone (208) 324-2993, Fax (208) 324-1224
Sections 2. 3 & 4: These sections all include new language regarding the city's
regulation of Idaho Power's facilities and operations. Idaho Power is concerned that this
expanded language could infringe upon the existing authority of the Idaho Public Utilities
Commission over the Company's operations. (Section 7 of the franchise agreement does
acknowledge the authority of the Idaho Commission, but it refers only to Idaho Power's electric
service and the rates and charges therefor. This does not cover the full extent of Idaho Power's
operations that may be subject to the jurisdiction of the Idaho Commission.) To avoid a conflict
with the Idaho Commission's authority, Idaho Power requests that McCall remove its new
language in Sections 2, 3, & 4, as highlighted on the enclosed pages. This would leave the
original language of the Ontario agreement, which provides appropriate guidelines for city
regulation of Idaho Power facilities.
Section 6: Idaho Power wishes to delete the city's new indemnification language
and retain the standard liability provision set forth in the Ontario franchise agreement. That
provision reads:
The Grantee shall at all times indemnify and hold the City, its
officers, employees and agents, harmless from any and all expense
or liability arising from or by reason of any negligent act or
omission of the Grantee, its representatives or employees, in the
construction, operation or maintenance of any of the Grantee's
electric utility property or facilities.
Sections 9. 10. 11 & 12: Idaho Power wishes to delete these sections regarding
franchise fees. Idaho Power does not pay franchise fees to cities in Idaho as proposed in the
McCall ordinance. This is based on Idaho Power's position that Idaho cities do not have the right
to unilaterally impose franchise fees on electric utilities such as Idaho Power. Idaho Power
would accept a franchise fee which is approved by a vote of the citizens of the city, since the
citizens would be responsible for paying the franchise fee as a separately itemized surcharge on
their electricity bills.
Section 15: Idaho Power is willing to accept McCall's additional wording in this
section. However, we would like to add clarifying language to the final sentence, so it would read
"In all cases, 60 days' notice shall be required on the part of City or Grantee to reopen the
agreement under this Section."
Section 16: Idaho Power wishes to delete this new section regarding termination
of the franchise agreement. Idaho Power believes that the city has sufficient authority to require
Company compliance under the terms of the Ontario franchise agreement without resorting to the
extreme remedy of termination.
Section 17: Idaho Power wishes to delete this new section which would require
the formal consent of the city for any sale, assignment or lease of the franchise agreement. Such
a consent requirement could create a substantial burden on the Company if required for a
corporate restructuring, merger, etc. (For instance, city approval would have been required for
-2-
Idaho Power's transfer of its state of incorporation from Maine to Idaho in 1989, under the
language of Section 13).
Your October 13, 1994 letter also addresses the removal of existing above ground
distribution lines and the discontinuance of placing new distribution lines above ground. Idaho
Power's policy is to relocate existing overhead facilities underground at the expense of the
requesting party. Similarly, with respect to locating new facilities underground, Idaho Power
requires that the requesting party pay the differential in cost between the underground facilities
and Idaho Power's standard overhead facilities. Accordingly, if the city of McCall were to
request that Idaho Power bury new facilities or existing overhead facilities, the city would be
required to pay the related costs in advance. (This would be different from a city zoning
ordinance requiring that distribution facilities be placed underground by developers, in which case
the developer would pay the additional costs of underground facilities). Idaho Power's policy for
underground facilities has been applied elsewhere in its service territory and was previously
approved by the Idaho Public Utilities Commission in a case involving the city of Ketchum.
SC:mmb
Please call me at (208) 324-2993 if you would like to discuss this matter further.
Sincerely,
Stan Craven
-3-
ORDINANCE NO.
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328 AND
50-329 GRANTING A NONEXCLUSIVE FRANCHISE TO IDAHO POWER
COMPANY, A CORPORATION AND TO ITS SUCCESSORS AND ASSIGNS,
TO CONSTRUCT, MAINTAIN AND OPERATE IN AND UPON THE
PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF MTMAT,I,
IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR
SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY,
THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF TWENTY
YEARS; SUBJECTING SUCH ELECTRIC SERVICE TO REGUTATION BY
PUBLIC AUTHORITY; PROVIDING FOR PAYMENT TO THE CITY OF
COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND
SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID FRANCHISE."
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCCALL ,
IDAHO, THAT:
SECTION 1. The City of McCall , Idaho (hereinafter
called the "City") hereby grants to IDAHO POWER COMPANY, a
corporation, and to its successors and assigns (hereinafter called
the "Grantee") the right, privilege and franchise for a period of
ten (10) years from and after January 1. 1999 , however,
with the right to amend by mutual agreement in accordance with
Section 15, to construct, maintain and operate in and upon the
present and future streets, alleys, highways and other public
places within the corporate limits of the City, electric utility
property and facilities for supplying electricity to the City, and
the inhabitants thereof, and to persons and corporations beyond the
limits of the City, subject to the terms and conditions hereinafter
specified. In the case of annexation of property to the corporate
limit, such area will be considered under this agreement, upon
effective date of the annexation. All such electric utility
property and facilities nov maintained by the Grantee within the
corporate limits of the City shall be deemed covered by this
ordinance.
$ECTION 2. All of the Grantee's electric property and
facilities shall be constructed and at all times maintained in good
order and condition and in accordance with standard engineering
practices and all applicable safety codes and lawful governmental
regulations, including all construction standards presently in
effect in the City of McCall or adopted by the City_.during the
ten (10) year term granted herein. The City shall have authority
at all times, in furtherance of the safety, convenience and welfare
of the public, to control by appropriate regulations the location,
elevation and manner of construction and maintenance of the
Grantee's electric property and facilities onkthe City streets,
alleys, highways and public places, subject to the provisions of
1
any state or federal law applicable thereto, and the
at all times conform with all such regulations.
CTastir?! the City imove theirSEacIONties acequtgh
cost will be the responsibility of the grantee.
Grantee shall
grantee shall
of vay. This
$ECTION 4. It shall be lawful for the Grantee to make
all needful or convenient excavations in any of the streets,
alleys, boulevards and thoroughfares of the City for the purpose of
erecting and maintaining the posts, poles, tower, or other supports
for its wires or for the purpose of laying, maintaining and
operating wires and other conductors underground for the purpose
aforesaid, or to repair and improve such electric power and light
system and to extend the same as the growth of said City or the
needs of the inhabitants thereof may require; provided that when
the Grantee, or any person or corporation under the authority of
this franchise, shall disturb any of said streets, alleys, avenues,
boulevards, thoroughfares or public places for the purposes
aforesaid, he, it or they shall comply with the existing and future
ordinances of the City applicable thereto, and shall restore the
same to good order and condition as soon as practicable and without
unnecessary delay and failing to do so after five days' notice from
the City, or its duly authorized officer or officers, then the City
may place said street, alley, avenue, boulevard, thoroughfare or
public place in such condition at the cost and expense of the
Grantee, and said Grantee will forthwith pay the full cost and
expense thereof upon demand of the City. lilil- facilities
constructed under this ordinance shall be placed and -maintained at
such places and positions in or upon such public ways and public
places as shall not interfere with the passage of traffic and the
use of adjoining property,' and shall conform to all applicable
laws, rules and regulations. Grantee is required to apply for and
receive all permits as may be required by the City for work in the
public way.
SECTION 5. The City shall have the free right and
privilege to string and maintain wires for its municipal police and
fire alarm systems upon the poles and other facilities erected and
aaintained by the Grantee hereunder. The City shall string,
maintain and operate such wires at its own expense, risk and
responsibility, and in accordance with all legal requirements and
good engineering practices and in such manner as not to impose any
additional expense upon Grantee of its said poles and facilities.
Any such wires of the City shall be subject to interference by the
Grantee only when necessary in the maintenance, operation or repair
of the Grantee's own fixtures, wires, facilities and appurtenances.
,SECTION 6. The Grantee shall at all times indemnify and
hold the City, its officers, employees and agedts, harmless from
any and all claims, causes of action, expense or liability arising
2
out of, or in any vay connected with the construction, operation or
maintenance of any of the Grantee's electric utility property or
facilities by Grantee and/or Grantee's agents, employees or
representatives. Grantee shall provide an Idaho public liability
insurance certificate protecting the City under the Idaho tort
claims statute.
SECTION 7. The electric service to be furnished to the
public hereunder, and all rates and charges therefor, and all
regulation of the Grantee applicable thereto, shall at all times be
subject to all rules, regulation and orders that may be lawfully
prescribed by the Public Utility Commission of the State of Idaho
or by any other governmental authority now or hereafter having
jurisdiction over such matters. During the term of this franchise,
the Grantee shall continuously maintain facilities in the City for
convenience to its customers for the payment of bills for electric
service during the usual office hours.
SECTION 8. When necessary, in order to permit any duly
authorized person to move any building or other structure across or
along any street, alley, avenue, boulevard, or public place within
the City, the Grantee shall temporarily raise or remove its wires,
fixtures and appurtenances upon such street, alley, avenue,
boulevard, thoroughfare or public place, upon seventy-two hours
written notice in advance from such person, such notice to bear the
approval of such official as the City may designate, at such time
and in such manner as may be necessary reasonably to accommodate
such moving, consistently with the maintenance of proper service to
the Grantee's customers; provided, however, that the cost to the
Grantee of such temporary raising or removal, and of any
interruption of the Grantee's service to its customers caused
thereby, shall first be paid or satisfactorily secured to the
Grantee by the owner or mover of such building or other structure.
SECTION 9. As compensation for the right, privilege and
franchise hereby granted, the Grantee shall pay to the City on or
before the 15th day of each January, April, July and October
following adoption of this ordinance an amount equivalent to three
percent (3%) of the Grantee's "Gross Revenues" for the preceding
quarter. The term "Gross Revenues" as used herein shall mean and
be construed to be the amount of money actually collected from all
sources by the Grantee during the preceding quarter within the
corporate limits of the City. all sums which become delinquent
shall accumulate interest at the statutory rate provided in Idaho
Code Title 28, Chapter 22, Section 104(1). The accrual of interest
is not intended to waive or in any manner restrict City's ability
to elect any procedure or method of collection permissible by law
to enforce all the terms and conditions of this ordinance or the
franchise agreement. In addition, where the 9ity determines by
audit, financial statement or other method, that grantee has
underpaid franchise fees and where payment vas not received by the
City within the quarter owed, the grantee may be required to pay
3
all fees and interest due and an additional penalty of 25% of the
total amount owed.
Such franchise fee may be listed as a separate item on the
customer's utility bill.
,SECTION 10. City agrees to follow the notice
requirements of 63-2224a prior to the approval and commencement of
this franchise agreement.
SECTION 11. The Grantee shall keep accurate books of
account and the City shall have the right to inspect the same at
all times during business hours, and from time to time audit the
same for the purpose of determining such "Gross Revenues." Such
franchise compensation payments will be accepted by the City in
lieu of and as payment for any license, privilege or occupation tax
or fee for revenue or regulation now or hereafter to be imposed by
the City upon the Grantee during the term of this franchise;
provided, however, that this section will not be interpreted or be
construed as in any manner exempting the Grantee from paying the
usual and normal real and personal property taxes to any and all
taxing bodies within the boundaries of which the Grantee functions,
operates and owns property, and during the term hereof the City
will not require the Grantee to pay to the City any additional
license, privilege or occupation tax or fee. The City may require
an auditor's negative assurance statement from Grantee.
SECTION 12. In the event that a franchise fee paid by
another of the City's franchise grantees exceeds the amount paid by
Grantee herein, the franchise fee addressed in this agreement may
be raised to that level at the discretion of the City.
SECTION 13. The Grantee shall have the right and
privilege, insofar as the City is able to grant the same, in
accordance with National Arborist Association standards, of the
trimming of all trees which overhang the streets or public places
in such a manner and to such extent as will prevent the branches or
limbs or other parts of such trees from touching or interfering
with its wires, poles and other fixtures and equipment; providing,
however, that no such trees will be trimmed or cut back farther
than may be necessary to prevent such interference d'd to allow the
proper operation and maintenance of said line poles and fixtures.
However, except in an emergency, no trimming shall be undertaken
without giving the adjacent property owner notice that such
trimming will be performed.
,SECTION 14. The Grantee shall maintain and operate a
system for the distribution of electricity in the City so as to
furnish what shall be known as a twenty-four hour service, but the
Grantee does not guarantee continuous and uninterrupted service
4
under the terms hereof and under no circumstances shall the Grantee
be held liable to or responsible by the City on account of
interruption or failure of service caused by storms, washouts,
accidents, floods, acts of God or the public enemy, var, strikes,
damages by the elements or damage to plant or equipment on account
of any circumstances beyond the control of the Grantee. However,
the Grantee does agree to use due diligence to maintain continuous
and uninterrupted service.
SECTION 15. In the event of an amendment to the laws,
rules or regulations of the City of McCall , the State of Idaho
or the Public Utility Commission of Idaho applicable to this
franchise, or for periodic review of any section of this agreement
the terms of this franchise and the rights and privileges hereby
conferred may be changed, altered, amended or modified upon mutual
agreement between the City and the Grantee. In all cases, 60 days
notice shall be required on the part of City or Grantee to reopen
the agreement.
SECTION 16. If a grantee willfully violates or fails to
comply with any of the provisions of this franchise, the City shall
give written notice to the grantee of the alleged non-compliance of
it's franchise. The grantee shall have forty-five (45) days from
the date of notice of non-compliance to cure such alleged default
or, if such default cannot be cured in forty-five (45) days, to
present to the City a plan of action whereby such default can be
promptly cured.
If such default continues beyond the applicable dates agreed to for
such cure, the City shall give the grantee written notice that all
rights conferred under this Ordinance and its franchise may be
revoked or terminated by the Council after a public hearing. The
grantee shall be entitled to not less than thirty (30) days prior
notice of the date, time and place of the public hearing. The City
may elect, in lieu of the above and without any prejudice to any of
its other legal rights and remedies, to obtain an order from the
district court having jurisdiction compelling grantee to comply
with the provisions of the franchise and recover damages and costs
incurred by the City by reason of the grantee's failure to comply.
SECTION 17. Sale, assignment or lease of this franchise
is prohibited without the express written consent of the City.
SECTION 18. Inasmuch as the Grantee has constructed and
now is maintaining and operating electric utility property and
facilities in and upon the streets, alleys, avenues, highways,
boulevards, thoroughfares and public places in the City under a
franchise which will expire on July 1. 1994 , it is
hereby adjudged and declared that this ordinance is necessary for
the preservation of the public peace, health* and safety, and
therefore this ordinance shall take effect on January. 1., 1995.
5
IDAHO POWER COMPANY
I.P.U.C. NO. 5 TARIFF NO. 10
CANCELS
S CON i REVIS_SH ET NO. 27E
SCHEDULE N0. 71 IDAHO PUBLIC UTILITIES COI MISSION
OVERHEAD AND UNDERGROUND APPROVED EFFECTIVE
DISTRIBUTION LINE EXTENSIONS .1UN 14 '91 cont)JUL 1-'y1
'-'KU Ktvl3w
VIII. REFUNDS (Continued) SECRETARY
4. If the Extension Allowance of an Additional Applicant covers all
applicable payments and still has a remaining balance,
that surplus
will be refunded ids exhaustedested rortallolders on a Vested Interests are fully
Load
basis until the
surplus
refunded.
5. Vested Interest refund payments may be waived by notifying the Company
in writing.
C. Refund Limitations
1. Refunds will only be made for connections during the first five years
following the completion date of the Line Extension or Upgrade
construction.
2. Refunds will not exceed 100 percent of the refundable portion of any
party's cash payment to the Company.
IX. LOCAL IMPROVEMENT DISTRICTS
Unless specifically provided for under this paragraph, a Local Improvement
District will be provided service under the general terms of this tariff schedule.
Ttie Comp rly.�wi11iprovide-a cost,: estimate__ and feasibility:. study for==a local
:jmprovementzDistrict' within.'120,- s dayefter:.-receiv_ing_-=the _reso]ution-fiLfrom-�the`
..:. - -
requesting=governingzbody. The cost estimate will be based on Work Order Costs and
will not be considered binding on the Company if construction is not commenced
within six months of the submission of the estimate for reasons not within the
control of the Company. ihe3gcver..nirig _bodpjssuinV:the-;reso ution swilit'anthe
.Compan”for_. the_tcosts � cost.T=;:est o(atei a2dz f_eali iaiatYNAVdp
regardless .of: *ether, the ._Line ;Extention or:_theXonversion.actual Iy akes-k lace
After passage of the Local Improvement District ordinance, the Company will
construct the Line Extension or Conversion. Upon completion of the project the
Company will submit a bill to the Local Improvement District for the actual cost of
the work performed, including- the costs of preparing the cost estimate and
feasibility study. I: the':ae�t fiVi ost3- s: less-:than"the -estimateVtost.-Ahe ;locaV
Improvement District'_ wi l l_...pay :..the _actual -cost o =the TettifaltiontIexceedtzthe
estimated_ cest, Ahe Aocal. ,.Improvement: District L.pay :only -Abe -estimated cost .
The governing body will .pay the Company within 30 days after the bill has been
submitted.
A Local Improvement District will be eligible for an Extension Allowance .for
any new load connecting for service upon the completion of the Line Extension. A
Local Improvement District will retain a Vested Interest in any Line Extension to
the Local Improvement District. A Local Improvement District may waive payments for
Vested Interest from Additional Applicants within the Local Improvement District.
JAHO Issued by IDAHO POWER COMPANY
Issued - May 20, 1991 D. H. Jackson, Vice President, Distribution
1220 Idaho Street, Boise, Idaho
Effective - July 1, 1991
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 344-8677
November 3, 1994
To: Cities Served by Idaho Power
Fr: Scott McDonald
Re: Update
There are several attachments to which immediate attention should be paid. The first
document is the minutes of our last meeting with Idaho Power. We left this meeting
with the feeling that they would be willing to work with us on a compromise to an
election. We also made several changes to our draft ordinance at their request, which
is attached to the minutes. We have also sent the draft ordinance to Washington
Water Power and Utah Power and Light for their comments.
However, three days later, Idaho Power proceeded to hand out information on their
own at a seminar attended by several cities. Please note my subsequent memo to the
Board with supporting documentation. It is important that you review all of this
information.
We have identified thirteen cities so far whose franchises are either expired, or who
currently do not have a franchise with Idaho Power. Several of those cities have
tentatively agreed to look at the simultaneous passage of a franchise ordinance calling
for franchise fees. Based upon Idaho Power's actions, it is our conclusion that the
only way this will be settled is through the court process.
Some City Council's have decided to go ahead for renewal without the franchise fee
at this time. Please be aware that the City of Payette has language in their franchise,
approved by Idaho Power that allows the imposition of franchise fees in the future
(attached). If you are a city that is proceeding, we strongly urge you to get this
language in your agreement so that you do not eliminate this option in the future.
Finally, please note that if it is your intent to begin negotiations on a utility franchise,
the Idaho Code 50-341 does require than franchises go through the formal bidding
process. Please remember to do this prior to entering into any agreements.
We will be providing further information as the thirteen cities develop a strategy on
which to proceed.
OFFICERS
President
Paul Agidius
Mayor. Moscow
First Vim President
Winston Goering
Mayor. Nampa
Second Vice President
Kirk Hansen
Mayor. Soda Springs
Third Vim President
Brent Coles
Mayor. Boise
Legislative Chairperson
Paula Forney
Councilmember. Boise
Immediate Past President
Karen McGee
Councilmember. Pocatello
Executive Director
Scott B. McDonald
DIRECTORS
James Hammond
Mayor. Post Falls
Susan Johnson
Councilmember. Sandpoint
Lovetta Eisele
Councilmember. Lewiston
Laura Booth
Councilmember. Orofino
Tad Freeman House
Mayor. Cascade
Ban Westberg
Councilmember. Weiser
Max Yerrington
Councilmember. Meridian
Ted Ellis
Mayor. Garden City
Chuck Geska
Councilmember. Buhl
David Adair
Mayor. Gooding
Gregor!. Anderson
Councilmember. Pocatello
J. Walter ROSN
Mayor. Preston
John Walker
Mayor. Challis
James Flamm
Councilmember. Rexburg
ACTIVE PAST PRESIDENT
Dixie Reid
Councilmember. Coeur d'Alen
Grant Kingsford
Mayor. Meridian
Harold Sims
Mayor. Bonners Ferry
John O. CotantJr.
Manor. Chubbuck
Tim Ridinger
Mayor. Shoshone
a Printed on Recycled Racier a
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 3441677
MINUTES
Idaho Power Franchise Meeting
October 19, 1994
The meeting was begun at 10 am at the Twin Falls City Hall. Cities represented included
Hollister, Hagerman, Buhl, Boise, Pocatello, Hailey, Ketchum, and Mountain Home. The first part
involved discussions on other information that the cities should have in making their decision to
pursue a franchise fee with Idaho Power. This information includes:
1) What cities in Idaho have their own electric system and what revenues do they
see from that operation.
2) What franchise fees do the other electrical utilities pay in Idaho
3) Comparison of rates (kilowatt hours) paid in idaho versus regionally
After this and other information is compiled, it needs to be put in an information packet for the
cities.
During the second half of the meeting, representatives from Idaho Power were present. Rich
Hahn and Pat Harrington were present. The conversation dealt with Idaho Power's position
stating that an election of the people approving the franchise fee would be needed before they
would agree. The general discussion centered on a non -binding survey of the citizen's that would
be prepared by a third party. Information on the issue would be jointly prepared to be fair to
both groups and public meetings would also be held. Idaho Power representatives requested that
they get this proposal in writing including these points and that they would consider it.
The group then discussed the other wording changes requested by Idaho Power in the document.
A draft ordinance is attached reflecting these changes. The meeting was adjourned at 2:35 pm.
Printed on Recycled Paper
10/25/94
ORDINANCE NO.
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328 AND
50-329 GRANTING A NONEXCLUSIVE FRANCHISE TO IDAHO POWER
COMPANY, A CORPORATION AND TO ITS SUCCESSORS AND ASSIGNS,
TO CONSTRUCT, MAINTAIN AND OPERATE IN AND UPON THE
PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF
IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR
SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY,
THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF TEN
YEARS; SUBJECTING SUCH ELECTRIC SERVICE TO REGULATION BY
PUBLTC AUTHORITY; PROVIDING FOR PAYMENT TO THE CITY OF
COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND
SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID FRANCHISE."
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
IDAHO, THAT:
SECTION 1. The City of , Idaho (hereinafter
called the "City") hereby grants to IDAHO POWER COMPANY, a
corporation, and to its successors and assigns (hereinafter called
the "Grantee") the right, privilege and franchise for a period of
ten (10) years from and after , however,
with the right to amend by mutual agreement in accordance with
Section 15, to construct, maintain and operate in and upon the
present and future streets, alleys, highways and other public
places within the corporate limits of the City, electric utility
property and facilities for supplying electricity to the City, and
the inhabitants thereof, and to persons and corporations beyond the
limits of the City, subject to all ordinances and regulations of
the city and to the terms and conditions hereinafter specified. In
the case of annexation of property to the corporate limit, such
area will be considered under this agreement, upon effective date
of the annexation. All such electric utility property and
facilities now maintained by the Grantee within the corporate
limits of the City shall be deemed covered by this ordinance.
SECTION 2. All of the Grantee's electric property and
facilities shall be constructed and at all times maintained in good
order and condition and in accordance with standard engineering
practices and all applicable safety codes and lawful governmental
regulations, including all construction standards presently in
effect in the City of or adopted by the City during the
ten (10) year term granted herein. The City shall have authority
at all times, in furtherance of the safety, convenience and .welfare
of the public, to control by appropriate regulations the location,
1
SECTION 6. The Grantee shall at all times indemnify and
hold the City, its officers, employees and agents, harmless from
any and all claims, causes of action, expense or liability arising
out of, or in any way connected with the construction, operation or
maintenance of any of the Grantee's electric utility property or
facilities by Grantee and/or Grantee's agents, employees or
representatives. Grantee shall provide an Idaho public liability
insurance certificate protecting the City under the Idaho tort
claims statute.
SECTION 7. The electric service to be furnished to the
public hereunder, and all rates and charges therefor, and all
regulation of the Grantee applicable thereto, shall at all times be
subject to all rules, regulation and orders that may be lawfully
prescribed by the Public Utility Commission of the State of Idaho
or by any other governmental authority now or hereafter having
jurisdiction over such matters. During the term of this franchise,
the Grantee shall continuously maintain facilities in the City for
convenience to its customers for the payment of bills for electric
service during the usual office hours.
SECTION 8. When necessary, in order to permit any duly
authorized person to move any building or other structure across or
along any street, alley, avenue, boulevard, or public place within
the City, the Grantee shall temporarily raise or remove its wires,
fixtures and appurtenances upon such street, alley, avenue,
boulevard, thoroughfare or public place, upon seventy-two hours
written notice in advance from such person, such notice to bear the
approval of such official as the City may designate, at such time
and in such manner as may be necessary reasonably to accommodate
such moving, consistently with the maintenance of proper service to
the Grantee's customers; provided, however, that the cost to the
Grantee of such temporary raising or removal, and of any
interruption of the Grantee's service to its customers caused
thereby, shall first be paid or satisfactorily secured to the
Grantee by the owner or mover of such building or other structure.
SECTION 9. As compensation for the right, privilege and
franchise hereby granted, the Grantee shall pay to the City on or
before the 15th day of each January, April, July and October
following adoption of this ordinance an amount equivalent to three
percent (30) of the Grantee's "Gross Revenues" for the preceding
quarter. The term "Gross Revenues" as used herein shall mean and
be construed to be the amount of money actually collected by the
grantee from it's customers for lj.ght, heat, power and electric
energy consumed during the preceding quarter within the corporate GAnrt►'1uE
limits of the City. All sums which become delinquent shall ivl J
accumulate interest at the statutory rate provided in Idaho Code dee-mit?
Title 28, Chapter 22, Section 104(1). The accrual of interest is
not intended to waive or in any manner restrict City's ability to
elect any procedure or method of collection permissible by law to
enforce all the terms and conditions of this ordinance or the
3
interruption or failure of service caused by storms, washouts,
accidents, floods, acts of God or the public enemy, war, strikes,
damages by the elements or damage to plant or equipment on account
of any circumstances beyond the control of the Grantee However,
the Grantee does agree to use due diligence to maintain continuous
and uninterrupted service.
SECTION 14. In the event of an amendment to the laws,
rules or regulations of the City of , the State of Idaho
or the Public Utility Commission of Idaho applicable to this
franchise, or for periodic review of any section of this agreement
the terms of this franchise and the rights and privileges hereby
conferred may be changed, altered, amended or modified upon mutual
agreement between the City and the Grantee. In all cases, 60 days
notice shall be required on the part of City or Grantee to reopen
the agreement pursuant to this section. h
SECTION 15. If a grantee willfully violates or fails to
comply with any of the provisions of this franchise, the City shall
give written notice to the grantee of the alleged non-compliance of
it's franchise. The grantee shall have _forty-five (45) days from
the date of notice of non-compliance to cure such alleged default
or, if such default cannot be cured in forty-five (45) days, to
present to the City a plan of action whereby such default can be
promptly cured.
If such default continues beyond the applicable dates agreed to for
such cure, the City shall give the grantee written notice that all
rights conferred under this Ordinance and its franchise may be
revoked or terminated by the Council after a public hearing. The
grantee shall be entitled to not less than .thirty (30) days prior
notice of the date, time and place of the public hearing. The City
may elect, in lieu of the above and without any prejudice to any of
its other legal rights and remedies, to obtain an order from the
district court having jurisdiction compelling grantee to ,comply
with the provisions of the franchise and recover damages and costs
incurred by the City by reason of the grantee's failure to comply
SECTION 16. Sale, assignment or lease of this franchise
is prohibited without the express written consent of the City.
Consent will not be withheld as long as the new owner, assignee or.
leasee agrees in writing to abide by the terms and conditions of n
this franchise agreement and that there has been no prior default
by Idaho Power.
SECTION 17. Inasmuch as the Grantee has constructed and
now is maintaining and operating electric utility property and
facilities in and upon the streets, alleys, avenues, highways,
boulevards, thoroughfares and public places in the City under a
franchise which will expire on , it is
hereby adjudged and declared that this ordinance is necessary for
the preservation of the public peace, health and safety, and
5
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
Fax (208) 344-8677
MEMORANDUM
October 28, 1994
TO: AIC Legislative Committee/AIC Board
FROM: Scott B. McDonald, Executive Director
SUBJECT: Electrical Franchise Fees
AIC and selected cities have met with representatives of
Idaho Power on three occasion to negotiate a model
franchise agreement that includes a 3% franchise fee.
The most recent negotiating session occurred on October
19 in Twin Falls. Changes to the ordinance were agreed
to in that meeting. There were some issues, however,
that both sides agreed to continue to work on to reach
resolution.
The use of an advisory ballot by the city residents is
the major stumbling block. Enclosed is the ballot
mailed by Idaho Power to Nampa rate payers in 1970. By
the third reading, the Nampa City Council lost support
for their franchise ordinance.
AIC firmly opposed the use of such an advisoryballot
during our meeting with Idaho Power. As a compromise, we
offered to cosponsor a mailing desribing the pros and
cons of franchise fees to citizens. The cities would
write the "pro" portion, and Idaho Power would write the
"con" portion. Additionally, if desired, a multiple
choice survey of several fiscal alternatives could be
professionally written and independently administered as
an alternative for the more populated cities.
On Friday, October 21, Idaho Power moved ahead
unilaterally with their own public information campaign
on franchise fees. (See enclosure entitled "Idaho Power
Information Sheet - Utility Franchise Fees"). This
action indicates that Idaho Power intends to limit the
process of clarifying Idaho code as it relates to cities
franchise authority. Their stated goal is to legislate
the following:
OFFICERS
President
Paul Agidius
Mayor. Moscow
First Vice President
Winston Goering
Mayor. Nampa
Second Vitt President
Kirk Hansen
Mayor. Soda Springs
Third Vitt President
Brent Coles
Mayor, Boise
Legislative Chairperson
Paula Forney
Councilmember. Boise
Immediate Past President
Karen McGee
Councilmember. Pocatello
Executive Director
Scon B. McDonald
DIRECTORS
James Hammond
Mayor. Post Falls
Susan Johnson
Councilmember. Sandpoint
Lostua Eisele
Councilmember. Lewiston
Laura Booth
Councilmember. Orofino
Tad Freeman House
Mayor. Cascade
Ban Westherg
Councilmember. Weiser
Vitas Yerrington
Councilmember. Meridian
Ted Ellis
Mas or. Garden City
Chuck Geska
Councilmember. Buhl
David Adair
Max or. Gooding
Gregnn Anderson
Councilmember. Pocatello
J. Walter Ross
Manor. Preston
John Walker
Mayor. Challis
James Flamm
Councilmember. Rexburg
ACTIVE PAST PRESIDE\
Dixie Reid •
Councilmember. Coeur d'Alei
Grant Kingsford
Mayor. Meridian
Harold Sims
Mas or. Boners Ferry -
John O. Comm. Jr.
Max or. Chubbuck
Tim !Winger
Mayor. Shoshone
Att iimportafrit maitre
Enclosed is an opportunity for you
to express your opinion conceming a pro-
posed new tax which would apply only
to Nampa electric users.
SEVERN, RIPLEY, DOORN & HANSON
Cortifiod Public Accountants
P. O. Box 446
Nampa, Idaho 83651
EiiRNESTE ITARR
NAMPA7ITTDAH0 N83651
Bulk Rata
U. S. POSTAGE
PAID
Permit No. 11
NAMPA, IDAHO
BUSINESS REPLY CARD
Pint Class Permit No. 41 Nampa, Idaho
SEVERN, RIPLEY, DOORN & HANSON
Certified Public Accountants
P.O. Box 446
Nampa, Idaho 83651
PRESS RELEASE
The annual cost for street lighting in our city now costs in excess
of $123,000 per year. It is paid for with revenue from property taxes.
Tax exempt property and those people who do not own property are
exempt from participating in this cost. For this reason the city admin-
istration is planning to impose a 3$ franchise fee on Idaho Power for
use of public streets and alleys for the transmission of their power.
This will be the same fee that is now being paid by Intermountain Gas
Company for the use of public rights -of -way. Because both companies
are competitors it has been unfair to charge the fee with one company
without charging the other.
The revenue from the fee with Idaho Power will be used to pay for
the cost of street lighting. If there is any surplus it will be divided
equally between the budgets for the police and fire departments. This
will bring about a large saving to the real property owners in our city.
A residence that now pays a power bill of $25.00 will pay an additional
750 a month with the franchise fee. The bulk of the revenue would
come from the larger users such as business and industry. Tax exempt
property such as fraternal organizations would also pay their pro-
portionate share.
Practically everyone in the city benefits from street lighting and
police and fire protection. This proposed fee would make it possible
for everyone to participate instead of leaving all the burden to the
people who pay property taxes.
Ernest E. Starr
MAYOR
City of Nampa
EES :cmb
d3
FOR I
October
RELEASE
Association of Idaho Cities
3314 Grace Street, Base, Idaho 83703
Telephone (208) 344-8594
PRESS RELEASE
Contact: Scott McDonald
344-8594
Electricals anchise Fees vs Property Tax
Idaho cities are seeking to ease some of the burden placed on the property tax by requiring Idaho
Power to pay a fee to the cities as part of their franchise agreements. Public utility companies
doing business in a city usually do so under the terms of a franchise granted by the city. The
franchise normally states the obligations the utility has to the city in return for the privilege of
installing and maintaining utility equipment on public property.
The franchise fee is the compensation to be paid for this privilege and for the inconvenience and
expense to the city caused by the presence of this equipment on the public streets and in conduits
under the public ways. In cases where a franchise fee provision is not included in the agreement,
the city must turn to the property tax to cover expenses created by the presence of the utility.
Idaho Power's major competitor, Intermountain Gas, currently pays 3 percent of its gross receipts
to cities in the form of a franchise fee. For cities to continue imposing this fee on gas it must
impose the same fee on electrical services or be in violation of a provision of Idaho's constitution
requiring a uniformity upon persons and property. Idaho Power currently pays a franchise fee
of 3 percent of its receipts to the neighboring City of Ontario, Oregon. Idaho Power has never
paid a franchise fee to its Idaho cities.
It is Idaho Power's contention that Idaho Code is vague on the authority of cities to collect a fee
- attorneys for AIC and affected cities do not agree. As the 50 year franchise agreements expire
between many Idaho cities and Idaho Power, cities will be negotiating a 3 percent franchise fee
on the electric utility as part of the renewal process.
Cities contend that a franchise fee would spread the cost of utility maintenance within cities'
right-of-ways to a broader base of utility rate payer. The cost would be spread to all utility users
rather than having the expense fall solely on the property owners. There are a multitude of
government organizations who are exempt from paying any property taxes but benefit from city
services.
- more -
' Ititzt 1Pd1�IVER
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
Idaho Power Information Sheet
Utility Franchise Fees
Q: What is a franchise?
A: Municipal franchises authorize utilities or other
service providers to utilize a city's sweets and alleys for the
location of equipment and facilities. In Idaho Power's case,
this pertains to the electrical equipment nrrrsvary to provide
an essential service. Franchise agreements may also restrict
the city's right to compete with a utility's service to city
residents.
Franchises don't grant Idaho Power the right to serve
customers. The Idaho Public Utilities Commission grants that
right.
Q: What is a franchise fee?
A: It's a fee or tax charged to the utility or business by
the city, usually based on a percentage of the service
provider's gross revenues within the city.
Q: Does Idaho Power pay
franchise fees in Idaho?
A: No. The company believes that under Idaho law,
cities are not authorized to impose franchise fees on electric
utilities such as Idaho Power. The company does not pay fees
under any of its existing Idaho franchise agreements, which
have been in place up to 50 years.
Q: Who would pay the fee?
A: Ultimately, the company's customers would. The
Idaho Public Utilities Commission has ruled that franchise
fees will be billed to a utility's customers within the area or
locality in which the fee applies and appear as a separate item
on customers' bills.
Idaho Power would serve in an administrative role by
collecting the fees and turning the revenues over to the city.
Q: Does Idaho Power oppose
franchise fees?
A: Under certain terms and conditions, Idaho Power
would not oppose franchise fees. Chief among them is a pro-
vision to allow customers a voice in the imposition of such
fees.
Q: How would customers' voices
be heard?
A: Idaho Power supports providing all city resi-
dents an opportunity to vote on franchise fees at a public
election. No franchise fee should be imposed upon an
electric utility's customers without majority approval.
Q: Specifically, what conditions
does Idaho Power believe are
necessary?
A: Idaho Power would not oppose changes to -state
law governing franchise fees if the legislation included
the following.
• Electric utility franchises fees must be approved
by a majority of city residents voting in an election.
• Franchise fees shall be set forth as a separate item
on each customer's electric utility bill.
• The fees shall not exceed 3 percent of the reve-
nues collected by an electric utility from its customers
within the city limits.
• The Idaho Public Utilities Commission shall
review and approve all electric utility franchise agree-
ments which include fees before they become effective.
• The term of the franchise agreement between the
electric utility and the city shall not be less than 20 nor
more than 50 years.
Absent a change to state law, Idaho Power would
be willing to consider a franchise agreement with a city
provided it included these provisions.
Q: What can a customer do
about the franchise fee issue in
his or her community?
A: Idaho Power encourages all of its customers to
learn as much as possible about the issue and share their
thoughts and concerns with their local representatives and
government officials. Idaho Power employees welcome
the opportunity to visit with customers and discuss this
and any other company -related issue. Feel free to call
your local Idaho Power office.
ORDINANCE NO.._7§2. .
I
AN ORDINANCE GRANTING A NONEXCLUSIYE FRANCHISE td t6AN6 POWER COMPANY, A
CORPORATION, AND To its SUCCESSORS ANb ASSIGN§ , td CONSTRUCT, MAINTAIN AND
OPERATE IN AND UPON THE PRESENT AND FUTURE STkEEtS, IlfGNWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS O#.THE CITY 6P PA ttft, IDAHO, ELECTRIC
UTILITY PROPERTY AND FACILITIES FOR SUPPLYING.tildtRICi'tt AND ELECTRIC SERVICE,
TO THE CITY, THE INHANITANTS tHEREoti AND OTHERS E'8R A'ttkM OP FIFTY YEARSt
SuIJEctiNG SUCH ELECTRIC SERVICE TO hatUtAtioN BY- BBLib.AUtHoRitti kEVOKING
PRIOR FRANCHISE ORDINANCE; AND sOtcIFYiNG vital LiMITAtiONS, TERMS AND CON-
DITIONS GOVERNING THE EXERCISE OF-SAib FRANCHISE: - i
Be it ordained By the MAyot tnd,Ceuocil'ef the City of Payette,
Payette County, Idaho, that: '
Seetion 1, 1'hefe is hereby'enfited t6 Idaho. Foust Celipady, its /urcesaote ;
and assigns (herein called the entitle) A Mph -exclusive right,
ptivilege et ftah'chise until . Auguat_Sa it 26.:-. 't6 66natfuct, Beintein
the operate in the present And futute arrests, SAM and publit•plttla in the i
City of Payette, Payette county, idahe, and !EI Auttellefs, electtie light and;:
power lines, together with all the netealerY !!t >illiflbl! apbuttehadteA (in -
eluding uhderatauhd teeduits, poled, toaeta, 4itae Iretiaeiieaiah libb1 and
telegraph and telephone line§ for ita.61tn OA), fer tna purpose of •Aupplyine
electricity to said City, the inhsbiteetA.theteef•tli8 perms and e6106tetihnS
" beyond the Wats thereof, for light, heeti pewee kBArethet purposes.. '
Section 2, Poles and tdwera ehAll be eeeAttuetid ih a good and tub/tA U/a
Sennef, end Will be 16 etetted ad Bet te•interfere With travel
or ordinary use bf streets and alleys nest be in vielitien vial the general
otdinancer.of the City of Payette, idAhe. thl•leEWN of poles, tduers end i
tenduit/ shill be fixed under the AupetviaieB Lit th! City Council of the city,'
buE hbt AO AA t8 Metter! unraepaosbiy with lha-p rap operation of the'
6• Ct1htee'a lints:
.` T - batten 36- The OtAotee /hell indlreaify and 1141k1City herraese from any•
�
, ' And all wens* of liability Mhidi lily jedtue to it by reAson
of the negligehee et afeceeduet of thi trantef IR th! conettuction, operation
er maintenente bf its ayeteie hateunder,
•
•
Sectioh 4, the City shell have the-ffel fight ABCOtivilege to'ati:ihe and
mlintein witea far its mutielpel•pelire End fire Alaft system
upon the pole/ sad ether fatilitiea,eteEted.aitd,Eai)ittihad by the dtihtee
herein, • - " -? ' :+ ;r '
Section S:'.TheAlty of Payette t,ai-fiCiW tuitiiiEetiaboosa a ftahchise
taitchi wet ,charge tat .th! litlAse:fItibileRe and ftanchise
granted httein+ _-":' : st �., ;:.; : ;�,,.; `: -•
Se6tioh.6:- ihet thiA- ftdeth11 1;,6 .bQ ltisblieelh� it�iheted by the City
of 4egette,`fAeha iA ti;e Mat 'thdt`=thl Crehtee herein fails to •
use dlliRentA• te_Ao¢ply t i -Uity , el :itA.i g1,atitst9,1vithsee+444+wa411i eleettical
Asrvissi
Sectiofi;This lightOtivillae-And ttat;e4;lAe tIAEAd herein Chill be
-Aubjeet to ehaepe afi tedifieatlelt'Built and keeUlAtions of
-the Idaho State Pub1i6'UtilitieC Cemmilsittil;dlg!Tdahe.ttite stAtutel.
'- �. .. •. •�.+.:.•. •.. .:... .'. .. '• - yea:. _-
•
Section 9:. 'hhl Craetee ihail ii . iiEk�:tHe'• llt�tiltk lh eceeptance in
:. wfiting of this ftenchise Ceff7et pifete.thirty dlys after the
... -- fivaliaisaig!-hettdf . _ _. - �- �--- + - - _. - •
t.. •It - �s?> sl ;'%�`.�AkAki-• .
Settien 9,. Thib etflitaihtf-ehertakt. fffEttitis ti_ ill desaaaei- epbt6val by
• the "Mayani AeeeptaB6e;b tNl:tfAlitlA:_l!lllh, and publiE/tion
Within otil ibbi;th rftti. itl,tame,
•
r• —
McCALL
CITY ENGINEER
June 19,1997
Jack Paananen
P.O. Box 332
McCall, ID 83638
Re: Sewer Service to 1400 & 1402 Mill Rd.
Dear Mr. Paananen,
I wrote to you in November, 1996, indicating that infrastructure improvements in
your neighborhood were nearing completion. The East Lake Street Road, Water,
and Sewer Improvement Project is complete.
New sewer stub -outs have been provided at the property line in East Lake Street.
The old sewer line will be abandoned on July 1, 1997. If you have not already
done so, please make the necessary arrangements to connect to the new
sewer line prior to that date,
I appreciate your cooperation in this matter.
Sincerely,
a ✓� Cc cam. %C
/• l
Jacqueline R. DeClue, P.E.
City Engineer
c: G. Shimun
B. Keating
C:\My Documents \CORRESPO\TOOTHM-1\ELAKE\PAANANEN june.DOC
216 East Park Street • P.O. Box 986 • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-1
CANCELS
ORIGINAL SHEET NO. H-1
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
MAR 2 4'97
MAR 2 5 '97
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONSSECRETARY
OR ALTERATIONS
This rule applies to requests for electric service under Schedules 1, 7, 9, 19, 24, 45, and 46 that require
the installation, alteration, relocation, removal, or attachment of Company -owned distribution facilities. New
construction beyond the Point of Delivery for Schedule 9 or Schedule 19 is subject to the provisions for facilities
charges under those schedules. This rule does not apply to transmission or substation facilities, or to requests for
electric service that are of a speculative nature.
I. DEFINITIONS
Additional Applicant is a person or entity whose Application requires the Company to provide new or
relocated service from an existing section of distribution facilities with a Vested Interest.
Applicant is a person or entity whose Application requires the Company to provide new or relocated
service from distribution facilities that are free and clear of any Vested Interest.
Application is a request by an Applicant or Additional Applicant for new electric service from the Company.
The Company, at its discretion, may require the Applicant or Additional Applicant to sign a written application.
Connected Load is the total nameplate kW rating of the electric loads connected for commercial,
industrial, or irrigation service. Connected Load for residences is considered to be 25 kW for residences with
electric space heat and 15 kW for all other residences.
Company Betterment is that portion of the Work Order Cost of a Line Installation, alteration, and/or
Relocation that provides a benefit to the Company not required by the Applicant or Additional Applicant. Increases
in conductor size and work necessitated by the increase in conductor size are considered a Company Betterment
if the Connected Load added by the Applicant or Additional Applicant is less than 100 kilowatts.
Fire Protection Facilities are water pumps and other fire protection equipment, served separately from the
Applicant's other electric load, which operate only for short periods of time in emergency situations and/or from
time to time for testing purposes.
Line Installation is any installation of new distribution facilities (excluding relocations or alteration of
existing distribution facilities) owned by the Company.
Line Installation Allowance is the portion of the estimated cost of a Line Installation funded by the
Company.
Line Installation Charge is the partially refundable charge assessed an Applicant or Additional Applicant
whenever a Line Installation is built for that individual.
Local Improvement District is an entity created by the appropriate city or county governing body, as
provided by Idaho Code §50-2503, whose purpose is to provide for the study, financing and construction of
Distribution Line Installation or Alteration. The governing body shall assess property owners to recover the cost of
the Distribution Line Installation or Alteration. A Local Improvement District has discernible property boundaries.
Multiple Occupancy Projects are projects that are intended to be occupied by more than four owners or
tenants. Examples include, but are not limited to, condominiums and apartments.
Relocation is a change in the location of existing distribution facilities.
RECEIVED
JUL 241997
IDAHO
Issued - March 24, 1997
Effective - March 25, 1997
Issued by IDAHO POWER COMPANY
D. H. Jackson, Vice President, Retail Services
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-2 IDAHO PUBLIC UTILITIES COMMISSION
CANCELS APPROVED. EFFECTIVE
ORIGINAL SHEET NO. H-2
MAR 2 4 '97 MAR 2 5 '97
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ���e SECRETARY
OR ALTERATIONS (Continued)
DEFINITIONS (Continued)
Subdivision is the division of a lot, tract, or parcel of land into two or more parts for the purpose of
transferring ownership or for the construction of improvements thereon, that is lawfully recognized and approved
by the appropriate governmental authorities.
Temporary Line Installation is a Line Installation for electric service of 18 calendar months or less in
duration.
Temporary Service Attachment is a service attachment to a Customer provided temporary pole which
typically furnishes electric service for construction.
Terminal Facilities include transformer, meter, service cable, and underground conduit (where applicable).
Underground Service Attachment Charge is the non-refundable charge assessed an Applicant or Additional
Applicant whenever new single phase underground service is required by a Schedule 1 or Schedule 7 customer
attaching to the Company's distribution system.
Unusual Conditions are construction conditions not normally encountered. These conditions may include, but
are not limited to: frost, landscape replacement, road compaction, pavement replacement, chip -sealing, rock digging,
boring, nonstandard facilities or construction practices, and other than available voltage requirements.
Vested Interest is the right to a refund that an Applicant or Additional Applicant holds in a specific section of
distribution facilities when Additional Applicants attach to that section of distribution facilities.
Vested Interest Charge is an amount collected from an Additional Applicant for refund to a Vested Interest
Holder.
Vested Interest Holder is an entity that has paid a refundable Line Installation Charge to the Company for a
Line Installation. A Vested Interest Holder may also be an entity that has paid a refundable charge to the Company
under the provisions of a prior Rule or Schedule.
Vested Interest Refund is a refund payment to an existing Vested Interest Holder resulting from a Vested
Interest Charge to an Additional Applicant.
Vested Interest Portion is that part of the Company's distribution system in which a Vested Interest is held.
Work Order Cost is a cost estimate performed by the Company for a specific request for service by an
Applicant or Additional Applicant. The Work Order Cost will include General Overheads limited to 1.5%. General
Overheads in excess of 1.5% will be funded by the Company.
II. GENERAL PROVISIONS
A. Cost Information - The Company will provide cost information as reflected in the charges contained in
this rule, to potential Applicants and/or Additional Applicants. This preliminary information will not be
considered a formal cost quote and will not be binding on the Company or Applicant but rather will assist the
Applicant or Additional Applicant in the decision to request a formal cost quote. Upon receiving a request for a
formal cost quote, the Applicant or Additional Applicant will be required to prepay non-refundable engineering
costs to the Company
B. Ownership - The Company will own all distribution Line Installations and retain all rights to them.
C. Rights -of -Way - The Company will construct, own, operate, and maintain lines only along public
streets, roads, and highways that the Company has the legal right to occupy, and on public lands and private
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-3
CANCELS
ORIGINAL SHEET NO. H-3
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS
OR ALTERATIONS (Continued)
GENERAL PROVISIONS (Continued)
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFE-f T IVE
MAR 2 4'97 MAR 2 5 '97
SECRETARY
property across which rights -of -way satisfactory to the Company may be obtained at the Applicant or Additional
Applicant's expense .
D. Removals - The Company reserves the right to remove any distribution facilities that have not been
used for one year. Facilities shall be removed only after providing 60 days written notice to the last Customer
of record and the owner of the property served, giving them a reasonable opportunity to respond.
E. Property Specifications - Applicants or Additional Applicants must provide the Company with final
property specifications as required and approved by the appropriate governmental authorities. These
specifications may include but are not limited to: recorded plat maps, utility easements, final construction
grades, and property pins.
F. Undeveloped Subdivisions - When electric service is not provided to the individual spaces or lots
within a Subdivision, the Subdivision will be classified as undeveloped.
G. Mobile Home Courts - Owners of mobile home courts will install, own, operate, and maintain all
termination poles, pedestals, meter loops, and conductors from the Point of Delivery.
H. Conditions for Start of Construction - Construction of the Line Installations and/or Relocations will
not be scheduled until the Applicant or Additional Applicant pays the appropriate charges to the Company.
I. Terms of Payment - All payments listed under this Section will be paid to the Company in cash 30
days prior to the start of Company construction, unless mutually agreed otherwise.
J. Interest on Payment - ItM7Compeny_does not start.constr_action.,on_aline_Extension:andl_or7
f elocation°within 30,days after receipt of_the_construction.payment, the Companymill compute mterest-o R
th:67 ment-amount beginning-on-the-31st-day arid ending once Company construction-actoallrbegins
Vnferest will be computed atthe rate apPlable uneder'the Company's-General-Rulle -F77If-this-compuiation.
rlesultsirr-a- vales of-$10:00-or-more, the Company will.pay suchinterestato-the_Appl.icant, Ad'ditionalia
[Applicant, or'�Subdivideh. -� ��
K. Fire Protection Facilities - The Company will provide service to Fire Protection Facilities when the
Applicant pays the full costs of the Line Installation including Terminal Facilities, less Company
Betterment. These costs are not subject to a Line Installation Allowance, but are eligible for Vested
Interest Refunds under Section VI.A.
L. Customer Provided Trench Digging and Backfill - The Company will at its discretion allow an
Applicant, Additional Applicant or Subdivider to provide trench digging and a backfill. In a joint trench,
backfill must be provided by the Company. Costs of Customer provided trench and backfill will be
removed or not included in the work order costs and will not be subject to refund.
III. LINE INSTALLATION ALLOWANCES
The Company will contribute an allowance for the Terminal Facilities necessary for Service Attachments
and/or Line Installations. A Line Installation Allowance will not be applied to the Line Installation costs for a
Subdivision except for the Work Order Cost of Terminal Facilities. Subdividers may recoup their payments only
through the refunding provisions under Section VI of this Rule.
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-4
CANCELS
ORIGINAL SHEET NO. H-4
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS
OR ALTERATIONS (Continued)
LINE INSTALLATION ALLOWANCES (Continued)
IDAHO PUBLIC UTILITIES COMMISSION
MISSION
APPROVED EFFECTIVE
MAR 2 4'97 MAR 2 5 '97
SECRETARY
Maximum Allowance
Schedule 1
Non -Electric Heat Overhead Terminal Facilities + $1000
All -Electric Overhead Terminal Facilities + $1300
Multiple Occupancy Projects
Single Phase Overhead Terminal Facilities
Three Phase 80% of Terminal Facilities
Schedule 7
Single Phase Overhead Terminal Facilities
Three Phase 80% of Terminal Facilities
Schedule 9
Single Phase $1726
Three Phase 80% of Terminal Facilities
Schedule 24
Single Phase $1726
Three Phase Terminal Facilities
Schedule 19
Case -By -Case
IV. CHARGES FOR LINE INSTALLATIONS AND ADDITIONAL CHARGES FOR UNDERGROUND
SERVICE ATTACHMENTS
An Applicant or Additional Applicant will pay the Company for construction of Line Installations and/or
Underground Service Attachments, less Line Installation Allowances, based upon the charges listed in this
section.
A. Line Installation Charge
If a Line Installation is required, the Applicant or Additional Applicant will pay a partially refundable
Line Installation Charge equal to the Work Order Cost less applicable Line Installation Allowances.
1. Line Installation Charges Inside Subdivisions
Inside a Subdivision, the Line Installation Charges are calculated using the Work Order
Cost less Terminal Facilities. The maximum refund will be the total per lot refund amount as
specified in Section VI.B., but not more than the Work Order Cost less Terminal Facilities. Costs
of new facilities outside Subdivisions are subject to Vested Interest refunds.
B. Underground Service Attachment Charge
Each Applicant or Additional Applicant will pay a non-refundable Underground Service Attachment
Charge for attaching new Terminal Facilities to the Company's distribution system. The Company will
determine the location and maximum length of Service Cable.
Schedule 1 and Schedule 7. Single Phase
Underground Service Cable
(Base charge plus distance charge)
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-5
CANCELS
ORIGINAL SHEET NO. H-5
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
MAR 2 4 '97 MAR 2 5 '97
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS !j
OR ALTERATIONS (Continued)SECRETARY
CHARGES FOR LINE INSTALLATIONS AND ADDITIONAL CHARGES FOR
UNDERGROUND SERVICE ATTACHMENTS (Continued)
Base Charge
from underground $ 30.00
from overhead including riser $255.00
Distance Charge (per foot)
Company Installed Facilities $ 5.05
Customer Provided Trench & Conduit $ 1.05 (Schedule 1 only, Single Family
and Duplex)
C. Vested Interest Charge
Additional Definitions for Section IV.C. and Section VI.A.:
Original Investment - Work Order Cost less Terminal Facilities Allowance.
Vested Interest Holder's Contribution - Customer Payment plus Line Installation Allowances other
than Terminal Facilities.
Vested Interest - Amount potentially subject to refund.
Load Ratio - Additional Applicant load divided by the sum of Additional Applicant load and Vested
Interest Holder's load.
Distance Ratio - Additional Applicant distance divided by original distance.
1. The initial Applicant will pay the Original Investment cost less any Allowances. An
Additional Applicant connecting to a Vested Interest Portion will have two options:
Option One - An additional Applicant may choose to pay the current Vested Interest Holder's
Vested Interest, in which case the Additional Applicant will become the Vested Interest Holder
and, as such, will become eligible to receive Vested Interest Refunds up to that new Vested
Interest Holders contribution less 20% of the Original Investment.
Option Two - An additional Applicant may choose to pay an amount determined by this equation:
Vested Interest Payment = Load Ratio x Distance Ratio x Vested Interest Holder's unrefunded
Contribution.
If Option Two is selected, the Additional Applicant has NO Vested Interest and the
previous Vested Interest Holder remains the Vested Interest Holder. The Vested Interest Holder's
Vested Interest will be reduced by the newest Additional Applicant's payment.
2. The Vested Interest Charge will not exceed the sum of the Vested Interests in the Vested
Interest Portion.
3. If an Additional Applicant connects to a Vested Interest Portion which was established
under a prior Rule or Schedule, the Vested Interest Charges of the previous Rule or Schedule
apply to the Additional Applicant.
V. OTHER CHARGES
All Charges in this Section are non-refundable.
A. Relocation and Removal Charges - If an Applicant or Additional Applicant requests a Relocation
or removal of Company facilities, the Applicant or Additional Applicant will pay a non-refundable charge
equal to the Work Order Cost.
B. Engineering Charge - Applicants or Additional Applicants will be required to prepay all engineering
costs for Line Installations, and/or Relocations. Engineering charges will be calculated at $36.00 per hour.
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-6
CANCELS
ORIGINAL SHEET NO. H-6
IDAHO PUBLIC :iTILI`l i� `` '►ISS!ON
APPROVED
MAR 2 4'97 laR 2 5 '97
RULE H �
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS •'7;.1:4-,70-SECRETARY
OR ALTERATIONS (Continued)
OTHER CHARGES (Continued)
C. Right of Way Charge - Applicants or Additional Applicants will be responsible for any costs
associated with the acquisition of right-of-way.
D. Temporary Line Installation Charge - Applicants or Additional Applicants will pay the installation
and removal costs of providing Temporary Line Installations.
E. Temporary Service Attachment Charge - Applicants or Additional Applicants will pay for
Temporary Service Attachments as follows:
1. Underground - $140
The Customer provided pole must be set within two linear feet of the Company's existing
transformer or junction box.
2. Overhead - $120
The Customer provided pole shall be set in a location that does not require more than 100
feet of #2 aluminum service conductor that can be readily attached to the permanent location by
merely relocating it.
The electrical facilities provided by the Customer on the pole shall be properly grounded,
electrically safe, and ready for connection to Company facilities.
The Customer shall obtain all permits required by the applicable state, county, or
municipal governments and will provide copies or verification to the Company as required. The
above conditions must be satisfied before the service will be attached. Refer to Schedule 66,
Item 9 for charges if these conditions are not satisfied.
F. Unusual Conditions - Applicants, Additional Applicants, and Subdividers will pay the Company the
additional costs associated with any Unusual Conditions included in the Work Order related to the
construction of a Line Installation or Relocation. This payment, or portion thereof, will be refunded to the
extent that the Unusual Conditions are not encountered. Unusual Conditions payments for Line
Installations will also be refunded, under the provisions of Section VI, if the Unusual Conditions are
encountered.
G. Joint Trench - Applicants, Additional Applicants, and Subdividers will pay the Company for trench
and backfill costs included in the work order prepared for an unshared trench. In the event that the
Company is able to defray any of the trench and backfill costs included in the work order through the
sharing of the trench with other utilities, the trench and backfill cost savings will be refunded.
H. Intervenor Funding Lot Charge - The Company will assess a per lot charge on all residential
Subdivision Work Orders issued on or after the approval date of this Rule. This charge will expire on
February 26, 1998. Refer to Schedule 66, Item 10, for the specific charge per lot.
VI. REFUNDS
A. Vested Interest Refunds - The initial Applicant will be eligible to receive up to 80% of the Original
Investment as a Vested Interest Refund in accordance with Section IV.C. Refunds will be funded by the
Additional Applicant's Vested Interest Charge as calculated in accordance with Section IV.C.
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.U.C. NO. 26. TARIFF NO. 101
FIRST REVISED SHEET NO. H-7
CANCELS
ORIGINAL SHEET NO. H-7
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS
OR ALTERATIONS (Continued)
REFUNDS (Continued)
1. Vested Interest Refund Limitations
IDAHO PUBLIC UT
APPROVED
NIR 2 4'97
1LITIES COMMISSION
EFFECTIVE
hiAR 2 5 '97
Clu :�i,RETARY
a. Except for Rule VI.C., Vested Interest Refunds will be funded by no more than
four Additional Applicants during the 5 year period following the completion date of the
Line Installation for the initial Applicant.
b. In no circumstance will refunds exceed 100% of the refundable portion of any
parry's cash payment to the Company.
B. Subdivision Refunds
1. A Subdivider will be eligible for Vested Interest Refunds for payments for Line
construction outside the subdivision.
2. A Subdivider will be eligible for a refund from the Company on the Line Installation Charge
inside the Subdivision when a permanent customer connects for service and occupies a lot inside
the Subdivision.
3. The amount refunded to Subdividers of residential Subdivisions will be $800 per lot.
C. Special Rule for Undeveloped Subdivisions Platted Prior to January 1, 1997
1. For an undeveloped Subdivision which has been platted prior to January 1, 1997, and
which has not been amended after January 1, 1997, refunds will be made for connections inside
the Subdivision during the first 10 years following the completion date of the Line Installation.
2. The Subdivider will not be entitled to refunds under Sections VI.B.2. and VI.B.3.
Connections within the undeveloped Subdivision will be treated as individual Applicants or
Additional Applicants for payment, extension allowance, and refunding purposes.
3. The individual requesting the 10 year refund date will have the burden of demonstrating
that the Line Installation is to a Subdivision which has been platted and is undeveloped.
VII. LINE INSTALLATION AGREEMENTS
When the Line Installation Allowance paid by the Company under the provisions of this rule equals
or exceeds $75,000, the Applicant will be required to contract to pay, for a period of 5 years following the
completion date of the Line Installation, an annual payment equal to the greater of the billings determined
by application of the appropriate schedule or:
A. Eighty percent of the Applicant's total annual bill as determined by application of the
appropriate schedule; plus;
B. Twenty percent of the Line Installation Allowance granted the Applicant
Each Line Installation, for which the Line Installation Allowance paid equals or exceeds $75,000,
will require a separate Uniform Distribution Line Installation Agreement between the Applicant and the
Company.
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
FIRST REVISED SHEET NO. H-8
CANCELS
ORIGINAL SHEET NO. H-8
IDAHO PUBLIC UTILITIES COMMISSLON
APF—T^lfED EFFECTIVE
I.P.U.C. NO. 26. TARIFF NO. 101
.
MAR 2 4 '97 MAR 2 5 '97
RULE H
NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS />.?e�.r 1 SECRETARY
OR ALTERATIONS (Continued)
LINE INSTALLATION AGREEMENTS (Continued)
Developers of multi -family residential dwellings in which each unit is separately metered will be
exempt from the requirement to enter into an agreement with the Company if the Line Installation
Allowance paid equals or exceeds $75,000.
VIII. EXISTING AGREEMENTS
This rule shall not cancel existing agreements, including refund provisions, between the Company
and previous Applicants, or Additional Applicants. All Applications will be governed and administered
under the Rule or Schedule in effect at the time the Applicant was received and dated by the Company.
IX. LOCAL IMPROVEMENT DISTRICTS
Unless specifically provided for under this paragraph, a Local Improvement District will be
provided service under the general terms of this Rule.
The Company will provide a cost estimate and feasibility study for a Local Improvement District
within 120 days after receiving the resolution from the requesting governing body. The cost estimate will
be based on Work Order Costs and will not be considered binding on the Company if construction is not
commenced within 6 months of the submission of the estimate for reasons not within the control of the
Company. The governing body issuing the resolution will pay the Company for the costs of preparing the
cost estimate and feasibility study regardless of whether the Line Installation or the conversion actually
takes place.
After passage of the Local Improvement District ordinance, the Company will construct the Line
Installation or Conversion. Upon completion of the project, the Company will submit a bill to the Local
Improvement District for the actual cost of the work performed, including the costs of preparing the cost
estimate and feasibility study. If the actual cost is less than the estimated cost, the Local Improvement
District will pay the actual cost. If the actual cost exceeds the estimated cost, the Local Improvement
District will pay only the estimated cost. The goveming body will pay the Company within 30 days after the
bill has been submitted.
A Local Improvement District will be eligible for a Line Installation Allowance for any new load
connecting for service upon the completion of the Line Installation. A Local Improvement District will
retain a Vested Interest in any Line Installation to the Local Improvement District. A Local Improvement
District may waive payments for Vested Interest from Additional Applicants within the Local Improvement
District.
IDAHO Issued by IDAHO POWER COMPANY
Issued - March 24, 1997 D. H. Jackson, Vice President, Retail Services
Effective - March 25, 1997 1221 West Idaho Street, Boise, Idaho
REPORT ON MUNICIPALIZATION
OF
ELECTRICAL POWER
INTRODUCTION
This report will examine options made available to the City of McCall as a result of the expiration of
it's franchise agreement with Idaho Power, as well as actions taken in its last session by the Idaho
legislature that limit the ability of municipalities to bargain in good faith with utility companies.
The electrical utility industry is in a state of flux. Private investor owned utilities like Idaho Power
have enjoyed a monopoly for the majority of this century in this state. However, in response to the
Energy Policy Act of 1992 (EPAct), the Federal Energy Regulatory Commission (FERC) has
promulgated rules intent on opening the industry to competition. This extraordinary shift in public
policy from regulated monopoly to open competition has traumatized Idaho Power. In Idaho it is
tempered by Electric Supplier Stabilization Act.
A normal firm in a competitive market, when faced with a new set of circumstances, evaluates its
strengths and weaknesses, consults its customers regarding their needs and desires, and logically
pursues a new course of action that accentuates their competitive edge, addresses areas of concern,
and seeks a new market niche. When a monopoly is faced with competition, it can assume the same
approach as a normal firm, or it can attempt to ignore the real world and continue to seek monopoly
protection.
Idaho Power has chosen the second route. In order to insure stability for the next 25 years, Idaho
Power has used its significant lobbying resources to manipulate a vulnerable state legislature, extort
municipal governments, and hoodwink the general public. Their expressed concern was not wanting
to act as a tax collector for municipalities. Their tactic was to present themselves as champions for
the common folk who were about to be raped and pillaged by local governments lusting after
additional revenue (see page 8 of exhibit A). In reality, their purpose was to save themselves from
having to compete in an open market, thus insuring a guaranteed rate of return to their private
stockholders.
They do this by offering franchise agreements which guarantee them a reasonable expectation to serve
for at least ten years, and, if conditions change, monetary claim for stranded costs. Their tactic was
extremely successful. They were adept at taking the focus off the real issues and casting aspersions
on local government intentions. They were masterful at exploiting a short legislative session to keep
the opposition from organizing or exposing their real concern. However, the short time frame did
not allow them to fully capitalize on their plot. They left a loop hole in Idaho Code 50-328 through
50-329A. It did not require municipalities to enter into franchise agreements.
AVAILABLE OPTIONS
The City of McCall is presented with several options. First, Idaho Power has presented the City with
a franchise agreement. The basic terms of this agreement pattern Idaho Code regarding franchises,
and asks for a term of 25 years. It also offers to collect a franchise fee of 1 percent of gross revenues
without further negotiation, and allows for an election at any time to raise the franchise fee up to the
legal maximum of 3 percent. No additional negotiation for benefits is available to municipalities
under Idaho Code.
Second, the City may reject the language of this regarding term and opt for a shorter term, but not
less than 10 years under Idaho Code. This would allow the City to review its position juxtaposed
with the electrical industry in a shorter period of time. Since major changes in the delivery of
electrical power are anticipated within that period of time, it would be wise for the City not to commit
itself to any term longer than the statutory minimum.
Third, the City may hold its franchise fee election prior to negotiating with Idaho Power so as to enter
into discussions on franchise length without having to trade additional years for the option to go to
the people at a later date.
A fourth option is to decide not to enter into a franchise agreement. In that instance, Idaho Power
is treated like any other contractor working in our streets. This is the method we are currently using,
and we have not run into any major snags. This will leave all options open to the City and its
residents to capitalise on the competitive changes in the industry that will be upon us in the next five
years. Retail wheeling is a likelihood, where customers can choose their service provider much along
the same lines as customers choose their long distance telephone service provider. The most likely
result will be very competitive pricing for electric consumers.
A fifth option is to exercise our legal option to provide the utility of electricity the same way we
provide any other municipal service, like water and sewer. In fact, sewer is an excellent example of
a situation where we control the delivery of the service, but contract out the maintenance. To
implement this strategy would require condemnation of facilities owned by Idaho Power and used in
the delivery of electrical power to the end user. The practical consideration of this action would be
the cost of acquisition. We have a bargaining chip in this discussion in that we have an expired
franchise agreement. Without the franchise agreement, Idaho Power does not have a reasonable
expectation to serve. In fact, since we have indicated at this point that we do not want to enter into
an agreement, their reasonable expectation is not to serve. Secondly, when a municipality elects to
exercise its right of condemnation, an electrical utility with a franchise agreement can expect to be
compensated for stranded costs associated with its continuing investment in providing service to
franchised customers. The franchise represents the period of time a utility can expect to serve a
community. Once it expires, the utility should have fully depreciated its investment and left the
municipality with no obligation to compensate further.
The sixth option is to acquire parts of the system as they become available. This strategy is most
easily implemented through the subdivision ordinance. The subdivision ordinance for the City of
McCall requires developers to pay for the installation of certain improvements, including the
undergrounding of electrical service. As has been the case, once these improvements have been
installed, Idaho Power takes them over free of charge. The City could elect to do the same.
Similarly, Idaho Power will not negotiate for the undergrounding of electrical services, and insists that
the cost for doing so be borne by the community, but given, gratis, to them. Should the City elect
to create Local or Business Improvement Districts to fund the undergrounding of electrical services,
the City could then elect to keep those improvements, rather than surrendering them at no cost to
Idaho Power.
The seventh option is to pursue a strategy referred to as "municipal lite". This course of action
involves a contested position in the EPAct that might allow municipalities to own limited portions
of the distribution system (like customer meters), and petition FERC for a wheeling order to transmit
electricity wholesale to end users who are charged retail costs by the City. This assumes certain other
requirements are met.
Other options that integrate parts of the above options may also be constructed, but do not contribute
additional concepts from those already listed.
RECOMMENDED OPTION
In view of the aforementioned information, I recommend that the City pursue some variant to the
sixth option. First, the City of McCall should not enter into a franchise agreement with Idaho Power.
Doing so exposes the City to liability for payment of stranded costs. In fact, the City should outline
in fair detail its anticipated course of action for assuming Idaho Power's customer base.
Second, McCall is in a period of rapid expansion. Developers are required to provide undergrounded
electrical service at their expense, as they are for water, sewer, roads, and certain other amenities.
The City should retain ownership of the electrical delivery system, as it does with other utilities it
provides in both the City limits and in the Area of City Impact. If a Local or Business Improvement
District is created to underground electrical distribution systems, those systems should be retained
and incorporated into a City system and not forfeited to Idaho Power.
Third, the City should then use its retained earnings to implement a programmed undergrounding of
all electrical distribution lines to customers. As these conversions take place, Idaho Power will be
asked to cease delivery, and remove their overhead system.
Fourth, the City should pursue condemnation of current underground systems in subdivisions within
the City whose existence is directly attributable to City subdivision regulation requirements. It is
rational to argue that Idaho Power did not expend any funds to build these systems and that their
franchise agreement has expired. Therefore, the cost to acquire those systems should be substantially
lower than that for a normal condemnation. The point being that the underground system was
obtained free, and it was City action that provided it to Idaho Power.
Finally, the City has several options for maintaining the newly acquired system. First, the City could
create an electrical utility department and provide funds to staff and supply it. It would contract with
other utilities and contractors to provide emergency services.
Second, the City could provide a limited staff, and contract for the majority of regular and emergency
services.
Third, the City could negotiate with Idaho Power or one of its competitors to wheel electricity to end
customers over our lines, and as part of the wheeling contract, provide a cash payment and an
agreement to maintain the lines.
CONCLUSIONS
McCall is in a unique position to capitalize on current expansion by entering the electrical utility
arena. If market conditions change dramatically, the City could at any time divest itself of properties
acquired, and make a profit. The City would be in charge of its own destiny in dealing with the
undergrounding of the distribution system.
The major costs to municipalities who contemplate condemnation of electrical distribution systems
are those associated with the legal battle over condemnation, and the actual cash settlement to pay
for the value of the system condemned. By using the strategy outlined above, the City could avoid
most of these major costs and make the proposal financially viable.
The benefits to the City would be the ability to finance an undergrounding program, and new revenue
raised by operating a profitable enterprise.
4
Kirk and Betsy Hall
Post Office Box 1943
1160 Meadows Road #12
McCall, Idaho 83638
208-634-4785
e-mail: betsyhall@aol.com
1 November, 1995
Some thoughts on your idea about the city taking ownership of new development's electrical
distribution systems.
Given the uncertainty of Idaho Power's future business focus, you might want to consider _
approaching them with a proposal like the following:
As a "test", Idaho Power and the City of McCall would agree that the City of McCall would:
1. Assume the ownership of the electric systems serving new developments within or near the
city boundaries (within the impact zone?),
9. The city would purchase. wholesale power from Idaho Power to serve these developments,
3. The City would contract with Idaho Power for maintenance (this might be assumed by the
city), emergency service and technical support for a negotiated price (a fee —for —service would
place too much risk on the city),
4. The City would charge a retail price that was equal to the price charged by Idaho Power (One
issue the city faces is that it would be difficult to charge differently for the power it provides
than that charged by Idaho Power.).
5. This test would be for a predetermined period of time say five or ten years, and
6. At the end of the period, the City could sell the system back to Idaho Power, Idaho Power
could sell the remaining system serving McCall to the City or the City could negotiate with
Idaho Power or others for another term sale to the then existing system.
By this agreement, neither Idaho Power or the City of McCall would be setting a precedence as to
the legal ability of a municipality to own new electric distribution systems installed by developers.
The offer to Idaho Power would be that the City and Idaho Power would present a united front to
other municipalities suggesting that they await the results of the test before they undertake a
similar action. That agreement might remove Idaho Power's potential political response to a
unilateral action by the city.
For the City, such an approach would give you an opportunity to see if being an electric utility is
what you wish to do with the ability to back out without extensive political loss.
I W ll loe-
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IDAHO POWER COMPANY
L-P.U.C. NO. 26, TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-1
RULE H
DISTRIBUTION LINE EXTENSIONS
FEB 3 - '95 FEB 1-'95
>11, f t /k+- '4-1-4.4'"' SECRETARY
This rule applies to requests for Electric Service under Schedules 1, 7, 9, 19, 24, 45 and 46 that require
the construction, upgrade, relocation, or removal of Company -owned distribution facilities. This rule does not
apply to transmission or substation facilities, or to requests for Electric Service which are of a speculative
nature.
1. DEFINITIONS
Additional Applicant is a person or entity whose request for Electric Service requires the Company to
provide service from an existing Line Extension or Upgrade with a Vested Interest.
Applicant is a person or entity whose request for Electrical Service requires the Company to provide
service from distribution facilities that are free and clear of any Vested Interest.
Application is a written document signed by an Applicant, Additional Applicant, or Subdivider that
requests Electric Service from the Company.
Average Unit Cost is the Company's average construction cost of distribution facilities. Average Unit
Cost information will be updated annually and filed with the Idaho Public Utilities Commission.
Company Betterment is the portion of the estimated cost of a Line Extension, Upgrade, and/or
Relocation that provides a benefit to the Company, over and above the direct benefit to the Applicant,
Additional Applicant, or Subdivider.
Connected Load is the total nameplate kW rating of the Electric Loads connected for commercial,
industrial, or irrigation service. Connected Load for residences is considered to be 25 kW for residences with
electric space heat and 15 kW for all other residences.
Conversion is the replacement of overhead electric distribution facilities with underground facilities.
Extension Allowance is the portion of the estimated cost of a Line Extension, Upgrade, and/or
Relocation, paid for by the Company under the provisions of Section 5 of this rule.
Are Protection Facilities are water pumps and other fire protection equipment, served separately from
the Applicant's other Electric Load, which operate only for short periods of time in emergency situations
and/or from time to time for testing purposes.
Line Extension is any continuation of existing distribution facilities owned by the Company.
Local Improvement District is an entity created by the appropriate city or county goveming body, as
provided by Idaho Code §50-2503, whose purpose is to provide for the study, financing and construction of
a Line Extension or a Conversion. The goveming body shall assess property owners to recover the cost of the
Line Extension or Conversion. A Local Improvement District has discemible property boundaries.
Point of Delivery for Une Extension Purposes is the point, as determined by the Company, where the
electric facilities of the Company interconnect with the electric facilities of the Customer.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
• Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
I.P.U.C. NO.26, TARIFF NO. 101 ORIGINAL SHEET NO. H-2
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued)
DEFINITIONS (Continued)
Relocation is a change in the location of existing distribution facilities.
IDAHO POWER COMPANY IDAHO PUELIC UTILITIES COMMISSIH
APPROVED EFFECTIVE
FEB 3 - '95 • FEB 1- '9
Subdivider is a person or entity requesting service for a residential Subdivision, commercial
Subdivision, industrial Subdivision or mobile home court.
Subdivision is the division of a lot, tract, or parcel of land into two or more parts for the purpose of
transferring ownership or for the construction of improvements thereon, that is lawfully recognized and
approved by the appropriate govemmental authorities.
Temporary Service is Electric Service of 18 months or less in duration.
Terminal Facilities are the transformer or transformer bank, service conductors to the Point of Delivery,.
and meter.
Unusual Conditions are construction conditions not normally encountered. These conditions may
include, but are not limited to: frost, landscape replacement, road compaction, pavement replacement,
chip -sealing, rock digging, boring, nonstandard facilities or construction practices, and other than available
voltage requirements.
Uparade is the alteration of existing distribution facilities by adding conductors, installing step
transformers, increasing conductor size and/or changing voltage and transformers in order to serve the
requested increase in load.
Vested Interest is the claim for refund that an Applicant, Additional Applicant, or Subdivider holds in a
specific portion of distribution facilities. The Vested Interest expires 5 years from the completion date of the
Line Extension or Upgrade, unless fully refunded earlier.
Work Order. Cost is an itemized cost estimate performed by the Company for a specific Line
Extension, Upgrade, and/or Relocation.
2. GENERAL PROVISIONS
A. Ownership - The Company will own all distribution Line Extensions. and retain all rights to them.
B. Rights -of -Way - The Cornpany will construct, own, operate, and maintain lines only along
public streets, roads, and highways which the Company has the legal right to occupy, and
on public lands and private property across which rights -of -way satisfactory to the Company
may be obtained without cost to the Company.
C. Service Conductors - The Company will determine the location and maximum length of
Company service conductors.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
NO.26 TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-3
FEB 3 - '95 FEB 1-'95
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued) Yam. -lam'SECRETARY
GENERAL PROVISIONS (Continued)
D. Metering - Company meters will be installed 5% feet above final grade and be accessible to
the Company at all times.
E. Removals - The Company reserves the right to remove any distribution facilities that have not
been in use for one year. Facilities shall be removed only after providing 60 days written
notice to the last Customer of record and the owner of the Property served, giving them a
reasonable opportunity to respond.
F. Property Specifications - Applicants, Additional Applicants, or Subdividers must provide the
Company with final property specifications as required and approved by the appropriate
govemmental authorities. These specifications may include but are not limited to: recorded
plat maps, utility easements, and final. construction grades.
G. Undeveloped Subdivisions - When a Subdivider does not provide Electric Service to the
individual spaces or lots within a Subdivision, the Subdivision will be classified as undeveloped
and the Subdivider will not be entitled to refunds under Section 6.A. Connections within the
undeveloped Subdivision will be treated as individual Applicants or Additional Applicants for
payment, extension allowance, and refunding purposes.
H. Mobile Home Courts - Owners of mobile home courts will install, own, operate, and maintain
all termination poles, pedestals, meter loops, and conductors from the Point of Delivery.
I. Credit for Trench Digging and Backfill - The Company will credit the costs of a Line Extension,
Upgrade, and/or Relocation when an. Applicant, Additional Applicant, or Subdivider provides
for trench digging and backfill. This. credit will not be subject to refund.
J. Terminal Facilities - Terminal Facilities will be provided by the Company for permanent service
connections when service is taken under Schedules 1 or 7 or when Secondary Service is taken
under Schedules 9, 19, and 24. The Company will .determine the time of the installationand
the location of Terminal Facilities within Subdivisions.
3. COST ESTIMATES
A. The Company establishes cost estimates for distribution facilities by using either Average Unit
Costs or Work Order Costs.
B. Average Unit Costs are used for the following:
1. Underground residential Subdivisions not exceeding 150 average front footage.
2. Single residences.
3. Duplexes, triplexes and fourplexes.
4. Single commercial, industrial, and irrigation Applications with 100 kW or less of
Connected Load.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
I.P.U.C. NO.26. TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSIO
ORIGINAL SHEET NO. H-4 APPROVED. EFFECTIVE
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued)
FEB 3 - '95 FEB 1- '95
)21.
COST ESTIMATES (Continued)
C. Work Order Costs are used for the following:
1. All Upgrades, Relocations, and Removals.
2. Underground residential Subdivisions exceeding 150 average front footage and all
overhead residential Subdivisions.
3. Condominiums, townhouses, and apartments with more than 4 living units per
building.
4. Commercial and industrial Subdivisions.
5. Single commercial, industrial, or irrigation Applications with over 100 kW of Connected
Load.
6. Applications for Temporary Service.
7. Any other Applications not elsewhere specified.
D. The Company's written cost estimate will be binding for 60 days after its submission to the
Applicant, unless the Company agrees to a longer period of time.
4. PAYMENTS
A. Line Extension Payment - Applicants, Additional Applicants, and Subdividers will pay the
Company for the estimated cost of a Line Extension less any applicable Extension Allowance
(Section 5) and less any Company Betterment. This payment is subject to refund.
B. Upgrade Payment - Applicants, Additional Applicants, and Subdividers will pay the Company
for the estimated cost of an Upgrade when additional conductors are added or when the
Connected Load is 100 kW or more. The applicable Extension Allowance (Section 5) and any
Company Betterment will be deducted from the payment. This payment is subject to refund.
C. Relocation Payment - Applicants, Additional Applicants, and Subdividers will pay the
Company for the estimated cost of a Relocation on the Applicant's, Additional Applicant's or
Subdivider's property, less any applicable Extension Allowance (Section 5) and less any
Company Betterment. Saidallowance will only apply to the cost of work essential in
providing service to the new or additional load. This payment will not become a Vested
Interest. A Subdivider may be refunded this payment through new connections within the
Subdivision under Section 6.A.3. All other Relocations will be paid by the Applicant, Additional
Applicant, or Subdivider and are not subject to an Extension Allowance, Vested Interest, or
Subdivider refunding.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
I.P.U.C. NO.26, TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-6
PAYMENTS (Continued)
FEB 3 -'95 FEB 1-'95
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued) ›Zie-,*a- � -44- ,44.4.gECRETARY
K. Temporary Service.
1. Applicants, Additional Applicants, and Subdividers will pay for the cost of providing
Temporary Service. This payment is not refundable unless the service becomes permanent. If
the service should become permanent, then the rules, allowances, and refunds for
permanent service will apply.
2. When a Customer requests temporary service for construction in a residential
Subdivision with existing underground or overhead electrical facilities, no charge will be
made by the Company to the Customer under the following conditions:
a. Location:
1. Underground - The Customer's pole shall be set within two linear feet
of the Company's existing transformer or junction box.
2. Overhead - The Customer's pole shall be set in a location that does
not require more than 100 feet of #2 aluminum service conductor that can be
readily attached to the permanent location by merely relocating it.
b. The electrical facilities provided by the Customer on said pole shall be
property grounded, electrically safe, and ready for connection to Company facilities.
c. The Customer shall obtain all permits required by the applicable state, county,
or municipal governments and will provide copies or verification to the Company as
required.
d. The above conditions . must be satisfied prior to the Customer's request for
connection. Refer to Schedule 66, Article 7 for charges if these conditions are not
satisfied.
L Terms of Payment - All payments listed under this section will be paid to the Company in cash
30 days prior to the start of Company construction, unless mutually agreed otherwise.
M. Interest on Payment - If the Company does not start construction on a Line Extension,.
Upgrade, and/or Relocation within 30 days after receipt of the construction payment, the
Company will compute interest on the payment amount beginning on the 31 st day and
ending once Company construction actually begins. Interest will be computed at the rate
applicable under the Company's General Rule F. If this computation results in a value of
$10.00 or more, the Company will pay such interest to the Applicant, Additional Applicant or
Subdivider.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
• •I.P.U.C. NO.26, TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-7
5. EXTENSION ALLOWANCES
FEB 3 - '95 FEB 1- '95
RULE H Y� Q J SECRETARY
DISTRIBUTION LINE EXTENSIONS (Continued) J��
A. Subdivisions - An Extension Allowance will not be applied to the Line Extension, Upgrade,
and/or Relocation costs for a Subdivision. Subdividers may recoup their payments only
through the refunding provisions under Section 6.A of this rule.
B. Applicants and Additional Applicants - The Extension Allowances for Applicant and Additional
Applicant connections are as follows:
1. Schedule 1 •
a. Service that includes electric water heating and permanent electric space
heating - $2,000 per new connection.
b. All other residential service - $1,500 per new connection.
2. Schedules 7 and 9 - $40.00 per kW of new or additional Connected Load.
3. Schedules 19 and 24 - $30.00 per kW of new or additional Connected Load.
4. Schedules 45 and 46 - $7.00 per kW of new or additional Connected Load.
6. REFUNDS
A. Subdivision Refunds
1. A Subdivider will be eligible for Vested Interest refunds for payments for Line Extension
and Upgrade construction outside the Subdivision.
2. A Subdivider will be eligible for a refund from the Company when a permanent
customer connects for service and occupies a lot or space inside the Subdivision.
3. The amount refunded to Subdividers, less any additional Line Extension costs required
to provide the requested service will be as follows:
a. Residential Subdivisions - $1,200 per connection.
b. Commercial and Industrial Subdivisions
(1) $40.00 per kW of Connected Load for each Schedule 7 and 9
connection.
(2) $30.00 per kW of Connected Load for each Schedule 19 connection.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
I.P.U.C. NO.26, TARIFF NO. 101 ORIGINAL SHEET NO. H-8
REFUNDS (Continued)
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
FEB 3 - '95 FEB 1- '95
RULE H -"k, SECRETARY
DISTRIBUTION LINE EXTENSIONS (Continued)
4. Refunds eamed from connections inside the Subdivision will be applied as follows: .
a. The Subdivider will be refunded first for any eligible payments made for Line
Extension or Upgrade construction inside the Subdivision.
b. If the Subdivision becomes fullyrefunded for payments made for distribution
facilities inside the . Subdivision, additional refunds may be applied to any
unrefunded payments for Line Extension or Upgrade construction outside the
Subdivision.
B. Vested Interest Refunds
1. The Company will provide a refund payment to each Vested Interest holder in a Line
Extension or Upgrade outside a Subdivision when an Additional Applicant connects to
that Line Extension or Upgrade.
2. The refund payment will be based on the following formula:
Linear Connected Original Line
Refund = Footage x Load x Extension
Ratio Ratio Cost Estimate
a. The Linear Footage Ratio .is the length of the jointly used facilities divided by
the length of the vested distribution facilities.
b. The Connected Load Ratio is the Connected Load of the Additional
Applicant divided by the combined Connected Load of the Additional
Applicant and all other Connected Loads with a Vested Interest in the Line
Extension or Upgrade.
c. The Original Line Extension Cost Estimate is the total construction cost of the
project, excluding Terminal Facilities.
3. The Additional Applicant will pay the Company the amount of the Vested Interest
refund(s) and any other refund due under a previous Line Extension schedule or rule,
less any unused Extension Allowance eamed under Section 5.
4. If the Extension Allowance of an Additional Applicant covers all applicable payments
and still has a remaining balance, that surplus will be refunded among Vested Interest
holders on a Connected Loadbasisuntil the surplus is exhausted or all Vested Interests
are fully refunded.
5. Vested Interest refund payments may be waived by notifying the Company in writing.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMM
APPROVED EFFECTIVE
• d.P.U.C. NO.26, TARIFF NO. 101 ORIGINAL SHEET NO. H-9
FEB 3 - '95 FEB 1- '95
RULE H
DISTRIBUTION LINE EXTENSIONS [Continued) >41ti 1u 9ECRETAR
REFUNDS (Continued)
C. Refund Limitations
1. Refunds will only be made for connections during the first 5 years following the
completion date of the Line Extension or Upgrade construction.
Refunds will not exceed 100 percent of the refundable portion of any party's cash
payment to the Company.
7. LOCAL IMPROVEMENT DISTRICTS
Unless specifically provided for under this paragraph, a Local Improvement District will be
provided service under thegeneral terms of this rule.
The Company will provide a cost estimate and feasibility study for a Local Improvement
District within 120 days after receiving the resolution from the requesting governing body. Thecost
estimate will be based on Work Order Costs and will not be considered binding on the Company if
construction is not commenced within 6 monthsof the submission of the estimate for reasons not
within the control of the Company. The goveming body issuing the resolution will pay the Company
for the costs of preparing the cost estimate and feasibility study regardless of whether the Line
Extension or the Conversion actually takes place.
Affer passage of the Local Improvement District ordinance, the Company will construct the
Line Extension or Conversion. Upon completion ofthe project the Company will submit a bill to. the
Local Improvement District for the actual cost of the work performed, including the costs of preparing
the cost estimate and feasibility study. If the actual cost is less than the estimated cost, the Local
Improvement District will pay the actual cost. If the actual cost exceeds the estimated cost, the Local
Improvement District will pay. only the estimated cost. The governing body will pay the Company
within 30 days after the bill has been submiffed.
A Local Improvement District will be eligible for an Extension Allowance for any new load
connecting for service upon the completion of the Line Extension. A Local Improvement District will
retain a Vested Interest in any Line Extension to the Local Improvement District. A Local Improvement
District may waive payments for Vested Interest from Additional Applicants within the Local
Improvement District.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
NO.26, TARIFF NO. 101 ORIGINAL SHEET NO. H-10
FEB 3 - '95 FEB 1- '95
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued) ›Zof","- SECRETARY
8. LINE EXTENSION AGREEMENTS
When the Extension Allowance paid by the Company under the provisions of this rule equals
or exceeds $75,000, the Applicant will be required to contract to pay, for a period of 5 years following
the completion date of the Line Extension, an annual payment equal to the greater of the billings
determined by application of the appropriate schedule or.
A. Eighty percent of the Applicant's total annual bill as determined by application of the
appropriate schedule; plus
B. Twenty percent of the Extension Allowance granted the Applicant
Each Line Extension, for which the Extension Allowance paid equals or exceeds $75,000, will
require a separate Uniform Distribution Line Extension Agreement between the Applicant and the
Company.
Developers of multi -family residential dwellings in which each unit is separately metered will
be exempt from the requirement to enter into an agreement with the Company if the Extension
Allowance paid equals or exceeds $75,000.
9. EXISTING AGREEMENTS
This rule will not cancel existing written Agreements, including refunding provisions, between the
Company and previous Applicants, Additional Applicants, or Subdividers.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
IDAHO POWER COMPANY
• I.P.U. NO.26, TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-11
RULE H
DISTRIBUTION LINE EXTENSIONS
FEB 3 - '95 FEB 1-'95
_ SECRETARY
IDAHO POWER COMPANY
Uniform Distribution Line Extension Agreement
DISTRICT ACCOUNT NO.
THIS AGREEMENT Made this day of 19 between
whose billing address is
hereinafter called Customer, and IDAHO POWER COMPANY, A corporation
with its principal office located at 1221 West Idaho Street, Boise, Idaho, hereinafter called Company:
NOW THEREFORE, The parties agree as follows:
1. The Company will agree to provide facilities to supply volt, _ phase Electric Service for the Customer's
facilities located at or near County of State of Idaho.
2. The Customer will agree to:
(a) Make a cash advance to the Company of $ as the Customer's share of the investment in
service facilities;
(b) Provide rights -of -way for the line extension at no cost to the Company, in a form acceptable to the Company;
(c) Pay. an annual minimum charge during the first 60 months following the Initial Service Date. The annual
minimum charge will be the greater of (1) the total of the schedule billings for the year or (2) $ plus 80
percent of the total schedule billings for the year. The total schedule billings will be computed in accordance. with the
rates and provisions of the schedules under which the Customer received service for that year.
3. This Agreement will not become binding upon the parties until signed by both parties.
4. The initial date of delivery of power and energy is subject to the Company's ability to obtain required labor, materials,
equipment, satisfactory rights -of -way and comply with govemmental regulations.
5. The term of this Agreement will be for 5 years from and after the Initial Service Date thereof.
6. This Agreement will be binding upon the respective successors and assigns of the Customer and the Company,
provided however, that no assignment by the Customer will be effective without the Company's prior written consent. _The Company's
consent will not be unreasonably withheld.
7. This Agreement is subject to valid laws and to the regulatory authority and orders, rules and regulations of the Idaho
Public Utilities Commission and such other administrative bodies having jurisdiction as well as Idaho. Power Company's Rules and
Regulations as now or may be hereafter modified and approved by the Idaho Public Utilities Commission.
8. The Company's Rule H, any revisions to that rule, and/or any successor rule is to be considered as part of this
Agreement.
9. In any action at law or equity commenced under this Agreement and upon which judgment is rendered, the prevailing
party, as part of such judgment, will be entitled to recover all costs, including reasonable attomeys fees, incurred on account of such
action.
Date 19
W.O. No.
Initial Service Date
(APPROPRIATE SIGNATURES)
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPl1C ntripr Nn 9SRRn
IDAHO POWER COMPANY
•I.P.LCC, NO.26, TARIFF NO. 101
IDAHO PUBLIC UTILITIES COMMISSION
APPROVED EFFECTIVE
ORIGINAL SHEET NO. H-5
PAYMENTS (Continued)
FEB 3 - '95 FEB 1-'95
RULE H
DISTRIBUTION LINE EXTENSIONS (Continued) ›lerft.~,. og: SECRETARY
D. Payment for Vested Interest - Additional Applicants or Subdividers requesting service from a
Line Extension and/or Upgrade with a Vested Interest, will make a cash payment in
accordance with Section 6.A of this rule. This payment is subject to refund.
E. Enaineerina Costs - Applicants, Additional Applicants, and Subdividers may be required to
prepay engineering costs for Line Extension, Upgrade, and/or Relocation projects that are
unusually large, complex, or of a questionable nature. This prepayment will be credited as a
contribution to the Line Extension, Upgrade, and/or Relocation payment.
F. Reengineerina Costs - Applicants, Additional Applicants, and Subdividers will be required to
prepay all reengineering costs. This payment is not subject to refund or Extension Allowance.
G. Unusual Conditions - Applicants, Additional Applicants and Subdividers will pay the Company
the additional costs associated with any Unusual Conditions related to the construction of a
Line Extension, Upgrade, or Relocation. This payment, or portion thereof, will be refunded to
the extent that the Unusual Conditions are not encountered. Unusual Conditions payments
for Line Extensions and Upgrades will also be refunded, under the provisions of Section 6, if the
Unusual Conditions are encountered. The applicable Extension Allowance will be applied
against all payments for Unusual Conditions.
H. Overhead -Underground. Differential - Applicants, Additional Applicants, and Subdividers will
pay the Company the difference between the estimated cost of an underground service
and the cost of an overhead service. This payment is not subject to refund or Extension
Allowance.
I. Primary Metering - Applicants, Additional Applicants, and Subdividers will pay for the cost of
primary metering not required by the Company. This payment is not subject to refund or
Extension Allowance unless at the Company's discretion, primary metering subsequently
becomes necessary for service under Schedules 9 and 19.
J. Fire Protection Facilities - The Company will provide service to Fire Protection Facilities when
the Applicant pays the full costs of the Line Extension and/or Upgrade, including Terminal
Facilities, less Company Betterment. These costs are not subject to a Line Extension
Allowance, but are eligible for Vested Interest Refunds under Section 6.B.
IDAHO Issued by IDAHO POWER COMPANY
Issued - February 3, 1995 D. H. Jackson, Vice President, Distribution
Effective - February 1, 1995 1221 West Idaho Street, Boise, Idaho
Per IPUC Order No. 25880
116MPO�R
Gary Shimun
City Manager, City of McCall
PO Box 986
McCall, Idaho 83638
Dear Gary
June 26, 1997
It is my understanding that the McCall City Council has reviewed both the
Memorandum of Understanding for the installation of underground power
lines in the City of McCall and the proposed Franchise Ordinance. I In our
recent conversations you have indicated that there were just two points that
the Council had a question on and would like clarified.
In the Memorandum of Understanding under Section 4, it states that if the
City requests that IPCo install the distribution power line underground based
on the binding estimate, it will pay IPCo the amount of the binding estimate
with thirty (30) days after IPCo issues the binding estimate. IPCo will then
proceed with the installation of the distribution power line. The Council's
concern, as I understand it, is what happens in the event that construction
is delayed, for whatever reason? Does Idaho Power just hang onto the
money and wait until it can begin construction or just how will this be
handled?
In the Witnesseth section of the Memorandum of Understanding there is a
section that says that IPCO is willing to provide for the installation of
underground distribution power lines in the City's rights -of -way, consistent
with its standard undergrounding policies, including Rule H. Rule H is a filed
tariff with the Idaho Public Utilities Commission and applies to new service
attachments and distribution line extension installations and alterations.
In the General provision section of the current Rule H, dated May 24, 1997,
paragraph J deals with interest on payment. If the company does not start
construction on a line extension and /or relocation within 30 days after
receipt of the construction payment, the Company will compute interest on
the payment amount beginning on the 31 st day and ending once Company
construction actually begins.
Obviously, we do not need to tell you that the window of opportunity for
construction in the McCall area is a small one. When considering the types
of conversion projects that we would be undertaking, much planning and
scheduling would have to take place in order to make sure that we
accomplish the conversion from overhead to underground and that we are
able to do so with a minimum of inconvenience to our customers.
The second issue that the Council would like clarified was the language in
the Franchise that included present and future street, alleys, highways, and
other public places. It is my understanding that the Council has some
concerns about including other public places in the agreement. It stems
from a fear that Idaho Power may feel that they have the right to just go out
and build power lines anywhere they want within the Corporate limits of the
City of McCall just because they have a Franchise agreement. This seems
to be an operational issue as much as a legal issue.
In section 3 of the proposed Franchise it reads that upon request of the
City, the Grantee shall relocate its facilities as necessary with the present
and future streets, alleys, highways and other publics places owned by the
City. The City shall have no responsibility for the costs of such relocation's.
By having other public places in the language you are also including any line
constructed in these public places in the relocation section of the
agreement.
With respect to the construction of new line within the Corporate limits of
the City of McCall, it is my understanding that we go through a permitting
process with the City to ensure that the City has an understanding as to the
location of new facilities being installed by Idaho Power. It would appear to
me to be very difficult for Idaho Power to construct line in the other public
places without the knowledge and approval of the City of McCall.
I hope this has helped to clarify some of your concerns. Please let me know
if we can be of any other service.
Sincerely Yours,
Kelly R. Edwards
w.� IDAH0
An IDACORP Company
MCCALL, CITY OF
216 E PARK ST
MCCALL, ID 83638-3832
RECEIVED
JUN 15 2009
June 11, 2009
Dear Valued Suppliers and Contractors:
Thank you for supplying products and services to Idaho Power Company (Idaho Power).
You are critical to the success of our business. The high quality products and services you
provide enable Idaho Power to provide low cost, reliable electric service to our customers while
enhancing the opportunity to grow your business.
In order to continue this beneficial business relationship, it is necessary that we have
business objectives aligned on values of ethical conduct and compliance with laws and
regulations.
To provide a foundation for this business objective, Idaho Power has developed a Code of
Business Conduct and Ethics (Code) which is posted on our website at www.idacorpinc.com.
We ask that your employees who deal with Idaho Power read the Code and that you and/or they
notify us if any of you become aware of any instances of noncompliance with the Code. You
may make reports anonymously, if you wish. Please be assured that your good faith reports
about actual or suspected violations of the Code will not in any way adversely affect your
business relationship with Idaho Power.
You may mace reports to -Mike ivladarieta, our Manager of Corporate Compliance, at
208-388-2572 or to the IDACORP EthicsLine at 1-800-500-0333.
Sincerely,
Darrel Anderson
Sr VP of Administration & CFO
CITY OF MCCALL
May 31, 2002
Idaho Power Company
Kelly Edwards
Community Relations Representative
P.O. Box 70
Boise, Idaho 83707
Dear Mr. Edwards:
In reviewing the franchise agreement adopted by the McCall City Council on September
11, 1997, it was determined that the City must notify Idaho Power of any annexations in
order for franchise fees to apply. I have attached copies of the annexations that have
taken place since that time. It was not clear who should receive the information. I'm
sending it to your attention in hopes that you can get it to the appropriate party.
Please do not hesitate to contract me should you need any additional information.
Thank you for your assistance.
Sincerely,
Cathleen A. Koch
Finance Director/City Clerk
Attachments
216 East Park Street • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038
For Details, Contact
Jim Henderson
Acting City Manger
Phone (208) 634-7142
Details of Idaho Power, City of McCall
Franchise Agreement
Twenty-year Agreement permits Idaho Power to
place utility facilities in City Street and Alley Rights -
of -Way for a Fee.
City of McCall
216 East Park Street
P.O. Box 986
McCall, ID 83638
Phone 208-634-7142
Fax 208-634-3038
McCall, October 29,1997: After two years of negotiations, the City of McCall and Idaho Power
reached an agreement which was formally adopted by the McCall City Council as Ordinance No. 713
on September 11, 1997. At the same time, the council approved a Memorandum of Understanding
which contained implementation procedures.
Under the agreement, Idaho Power will pay a fee of 1 % of gross revenues received from customers within the
city limits. The money will be deposited into the City's Street Fund and dedicated to placing utility lines
underground Ultimately Idaho Power customers in the city limits will pay the fee. The average Idaho Power
residential customer will pay about $0.58 per month under this agreement. Idaho Power will collect the fee from
the customer and remit the full amount collected to the city once each calendar quarter.
Idaho Power began mailing notices to customers with their November bills. The franchise fee will be
separately itemized on electric utility bills and may begin as soon as December 1997.
Residents should not expect to see an immediate movement of utilities underground as the
anticipated revenue of $4,000 to $5,000 quarterly will not be sufficient immediately. Secondly, the
agreement calls for coordination between Idaho Power and the city. Idaho Power will notify the city
of a planned service line project and an estimate of the additional cost of placing the service line
underground. The city will elect whether or not to commit funds to that specific project. If the city
�•_ more
Ar }4�-�e`cir
/ -)6L1 C L
i ?c-�LfGi (ece-
Details of City of McCall, Idaho Power Franchise Agreement Page 2
elects to do so, it will pay the difference between Idaho Power's cost and the cost of placing that
particular line underground. Shortly, city and Idaho Power officials will meet to look at the specific
projects and develop long-range plans that are consistent with expected receipts. Utility lines along
Highway 55 and other highly visible areas will undoubtedly receive the highest priority from the city.
McCall's subdivision ordinance already requires underground power in new developments
Idaho Cities may enact franchise ordinances and enter franchise agreements under Section 50-
329A of the Idaho Code. The previous franchise ordinance was in effect for fifty years and expired
in 1994. The Cities of New Meadows and Cascade have enacted franchise ordinances and
agreements with Idaho Power in the last two years.
wce�,riE;�i}4n r.,.
IDAHO POWER
II� P.O. BOX 70
CSMPOINEK BOISE, IDAHO 83707
CHECK NO.
DATE
0000866873
07/27/99
U.S. BANK
PLAZA BRANCH
101 SOIITH CAPITAL BLVD.
BOISE, IDAHO 83702
92-372/1231
AMOUNT
$*******7592.22**
PAY EXACTLY Seven Thousand Five Hundred Ninety -Two and 22/100 Dollars
PAY
TO THE
ORDER
,OF
GCR58418
000204
054968
MCCALL, CITY OF
P O BOX 986
ATTN CITY CLERK
216 E PARK
MCCALL
u
CO -SIGNATURE REQUIRED FOR AMOUNTS $50,000 AND OVER
ID 83638
00008 6 68 7 3o ': L 2 3 i0 3 7 294 b 5 330 20 U8 90 So
TREASURER
830063000000
SECOND QUARTER 30
FRANCHISE TAX
$7,592.22
TOTAL FOR CHECK 0000866873 $7,592.22
PLEASE DETACH AND RETAIN BEFORE DEPOSITING CHECK
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
Katrina M Basye
Property Tax Representative
(208)388-2328
July 13, 1999
Cherry Woodbury
Acting City Clerk
City of McCall
216 E Park Street.
McCall, ID 83638
Dear Ms. Woodbury:
Under the provisions outlined in the franchise agreement, Ordinance No. 713,
Idaho Power Company has computed and has enclosed its franchise payment for the
second quarter 1999 in the amount of $7,592.22.
If you have any questions, please call.
KMB:dp
Enclosure
��P 0 4 1 �� N E R
I D A H O P O W E R C O M P A N Y
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f i r s t q u a r t e r 1 9 9 9 i n t h e a m o u n t o f $ 1 0 , 2 2 2 . 4 9 .
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a t u k I n ) c 1 0 0 4 4 t ) t k i t x ) L A t o i o u s A
t h e
04/19/H 10:18 22208 368 6911 IDAHO PWR 8TH FL
I¢IUUZ/UUL
CITY OF McCALL FRANCHISE TAXES`
Check Date Check # Amount Payment For
1/27/98 772239 2,545.38 4th Quarter 1997
4/23/98 788147 9,178.77 1st Quarter 1998
7/27/98 803796 6,642.19 2nd Quarter 1998
10/14/98 818056 5,030.44 3rd Quarter 1998
1/25/99 839827 6,662.20 4th Quarter 1998
4/14/99 850788 10,222.49 let Quarter 1999
1141 ail 6 1+1?
,KAOMFRMIDAWICCALL.XL5
04/18/8a 1U:15 xnua 300 Gall
Ivanu rrn °in rL
Lei•Ju.1.i Luc
To
�p
Tax Department
1221 West Idaho Street
I°d}lux 70
Boise, ID 83702
Facsimile Transmittal
Name Cherry
Company City of McCall
Fax Number 208-634-3038
Voice Number 208-614-7142
From
Name Diana Peterson
Department: Tax
Date: April 19, 1999
Phone Number: (208) 3i88-2468
No. of Pages Including Cover Sheet: 2
Notes
Fax Number: (208) 388-6911
Attached are the franchise fee amounts paid for the City of McCall.
If you need further information, please let me Icnow_
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P A Y
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D A T E
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U . S . B A N K
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A M O U N T
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��P C I 1 E R
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P L E A S E D E T A C H A N D R E T A I N B E F O R E D E P O S I T I N G C H E C K
��1 P O 4 ��I V E R
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( 2 0 8 ) 3 8 8 - 2 3 2 8
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C h e r r y W o o d b u r y
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I d a h o P o w e r C o m p a n y h a s c o m p u t e d a n d h a s e n c l o s e d i t s f r a n c h i s e p a y m e n t f o r t h e
f i r s t q u a r t e r 1 9 9 8 i n t h e a m o u n t o f $ 9 , 1 7 8 . 7 7 .
I f y o u h a v e a n y q u e s t i o n s , p l e a s e c a l l .
S i n c e r e . l y , - -
K M B : d p
E n c l o s u r e
wHnuBOruvvtrc uumpANY
P.O. X 70
`_POWER BOISE, IDAHO 83707
PLAZA BRANCH
U.B. BANK 101 SOUTH CAPITAL BLVD.
BOISE, IDAHO 83702 •
92-372/1231 426
CHECK NO.
000788147
GATE
04/23/98
PAY EXACTLY
PAY
TO THE
ORDER
OF
U.S. BANK OF IDAHO
B
pmuut-�+► a-► ►rt►±,14a ► t4;t4,-►, :igellyms nv_finMTnigknveiscvw.►:kVia,;
MCCALL, CITY OF
P O BOX 986
ATTN CITY CLERK
216 E PARK
MCCALL ID 83638
AMOUNT
$*******9178.77**
ACCOUNTS PAYABLE
CO -SIGNATURE REQUIRED FOR AMOUNTS $50,000 AND OVER
�-P-t•
100000 788 14 710 1.11 2 3 10 3 7 291: 4 26 7808 8 1610
•IDS POWER
V.P., CFO & TREASURER
INVOICE
P.O.NUMBER VOUCHER DESCRIPTION AMOUNT
GCR57849
457881000000
$9,178.77
TOTAL FOR CHECK 0000788147 $9, 178.. 77
PLEASE DETACH AND RETAIN BEFORE DEPOSITING CHECK
bS5
� �PO�I�VER
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
KELLY R. EDWARDS
Community Relations Representative
October 10, 1997
Via UPS
Cherry Woodbury
Acting City Clerk
City of McCall
216 E. Park Street
McCall, ID 83638
Re: McCall Franchise Agreement with Idaho Power
Ordinance No. 713
Dear Ms. Woodbury:
Enclosed is one executed original of the McCall franchise agreement signed and
attested by Idaho Power. We have kept the other executed original of the agreement for the
Company's files. Also enclosed are two originals of Idaho Power's formal acceptance letter. Please
execute both originals of this letter and return one to me.
Additionally, I have enclosed a franchise Certificate for execution by the City to
verify that the various requirements for the franchise have been met. The Certificate includes the
following exhibits:
Exhibit A - City Council Meeting Minutes. Please attach the minutes from the first
City Council meeting, where the franchise ordinance (Ordinance No. 713) was
introduced, and from the second City Council meeting, where the ordinance was
adopted.
Exhibit B - Ordinance No. 713. A copy of this Ordinance will be attached to the
Certificate as Exhibit B.
Exhibit C - Newspaper Notices. Under Idaho law for franchise ordinances, the City
is to publish the ordinance twice; once before the franchise ordinance is adopted and
once within thirty days after the ordinance is adopted. Please supply copies of the
ordinance publications as Exhibit C.
Telephone (208) 642-6553, Fax (208) 634-2118
Exhibit D - Idaho Power Acceptance Letter. A copy of the enclosed acceptance letter
will be attached as Exhibit D after you have executed the City's portion of the
acceptance letter.
Please fill in the blanks on the Certificate form and attach the exhibits as discussed
above and execute the Certificate as the City Clerk representing the city. The Certificate can then
be returned to me with the executed acceptance letter referenced above.
I will be submitting Idaho Power's insurance certificate which is required under
Section 7 of the franchise agreement.
Thank you once again for your assistance with the Idaho Power - McCall franchise
agreement. Please feel free to call me at 642-6553 if you have any questions.
KE:mmb
Sincerely,
Kelly Edwards
-2-
CERTIFICATE
STATE OF IDAHO )
) ss.
COUNTY OF VALLEY )
I, the undersigned, the duly qualified and acting City Clerk of the City of McCall,
Idaho, hereby certify that:
1. Attached hereto as Exhibit A is a full, true and correct copy of portions of
the minutes of the regular meetings of the City Council of McCall, Idaho, duly held in said City
on the dates of t%i, �� / _ l 1 q ,respectively, at which
meetings all of the Council embers recited in the , se •Lutes as present were present during the
entire meetings; that such portions of the minutes contain all parts of the minutes which relate to
the regularity of the meetings or to any and all proceedings had with reference to the passage of
Ordinance No. 713 granting a franchise to Idaho Power Company, its successors and assigns.
2. At each of the meetings aforesaid the ordinance was read, and said ordinance
was duly passed and adopted.
3. Attached hereto as Exhibit B is a full, true and correct copy of Ordinance
No. 1251 as adopted by the City and as appears on record and on file in my office.
4. Said ordinance has never been altered, amended or repealed and is now in
full force and effect.
5. At the time of the adoption of said ordinance, there were no rules or
regulations of the City Council requiring ordinances or franchises to be passed or adopted in any
manner or form different from that followed.
6. I am the legal keeper and custodian of the original records from which the
attached copies purport to be made, and that I have compared said copies with the original records,
and have found them to be true copies thereof.
7. Both prior to the passage of said ordinance, and within 30 days after the
passage of the ordinance, I caused the ordinance to be published in Stove, , which
is a newspaper having a general circulation in said City of McCall. Attached hereto as Exhibit C
are copies of the proof of publication forms for the ordinance.
8. At the time of the passage of the above ordinance, the said City of McCall
was a City incorporated under and govemed by the general laws of the State of Idaho, and the
Mayor of said City and Council Members of said City were as follows:
cn .
CQwwc.JZ '(Ylm --1 D-4A 01 cr x.c.‹, col
9. On October 10, 1997, being within thirty (30) days after the passage of said
ordinance, the Grantee, Idaho Power Company, duly mailed to me, as City Clerk of said City, its
written acceptance of the franchise granted by said ordinance.
AIV WITNES WHEREOF, I hereunto set my hand and affixed the said seal of said
City this ay of 0("5-V)-.RA__ , 1997.
(SEAL)
EXHIBIT A
City of McCall
MINUTES
Regular Meeting of the McCall
City Council -Thursday,
September 11, 1997
Table of Contents
CALL TO ORDER AND ROLL CALL 2
PUBLIC COMMENT »..........».........».»»..» 2
CONSENT AGENDA , 3
UNFINISHED BUSINESS 3
PROPOSED ORDINANCE NO. 713 — GRANTING A FRANCHISE TO IDAHO POWER CO., — THIRD READING. 3
SEWER PLANT AGREEMENT 4
CARICO SuBDIvIsIoN—LID 4 .4
NEW BUSINESS 4
PROPOSED CHANGES TO DEINHARD-BOYDSTUN CONNECTOR ROUTE 4
SOUTH LOOP WATERLINE 4
J DITCH ON FARM IRRIGATION PROGRESS PAYMENT #5 IN THE AMOUNT OF $98,701.04 AND J DITCH PIPELINE
PROGRESS PAYMENT#5 IN THE AMOUNT OF $141,076.31 5
ADJUSTMENT OF UTILITY ACCOUNT—ROBERT RENFRO 5
AD HOC COMMITTEE ON WATER RATES 5
WATER RATES FOR MIXED COMMERCIAL AND RESIDENTIAL PREMISES 5
OPEN ISSUES ON SPRING MOUNTAIN RANCH DEVELOPMENT 6
STAFF REPORTS 6
ACTING CITY MANAGER 6
CITY ATTORNEY 6
CITY ENGINEER 6
PUBLIC WORKS DIRECTOR 6
!'r MAYOR AND COUNCIL COMMENTS AND REPORTS 7
IFMS. COLTON
MS. ARP 7
MR. KILLEN 7
CORRESPONDENCE AND INFORMATION ITEMS ... 7
ADJOURNMENT ..................... S
MINUTES
Regular Meeting of the McCall City Council -Thursday, September
11, 1997
Call to Order and Roll Call
The meeting was called to order by Mayor Killen at 7:00 P.M. Ms. Arp and Messrs, Colton,
and Killen answered the roll call. Mr. Eckhardt and Mr. Martens was absent. A quorum
was present. Members of the staff present were: (1) Acting City Manager Jim Henderson,
(2) City Attorney Ted Burton; and (3) Staff Planner Andy Locke.
Public Comment.
The mayor opened the meeting to comment from the public respecting items not related to
the public hearings. The following were heard:
Mr. Locke reported that a public hearing had been set for October 9, 1997 for an appeal to
the decision of the City Planning and Zoning Commission for a Conditional Use Permit for
Heartland Home an assisting living facility: He further reported that Miles Rademan would
meet with the planning commissions and staff at 10:00 A.M. September 15, 1997.
Helen Eimers asked the status of Council Member Eckhardt. Mayor Killen reported that
Mr. Eckhardt had not resigned even though we asked him to do so and that the council
had no authority to remove him from office. Ms. Eimers then asked if he was still receiving
his salary. Mayor Killen again stated under the present city ordinances, the council had no
authority to do so. The council by consensus directed the City Attomey to prepare and
amendatory ordinance providing for such circumstances.
Kirk Eimers spoke on behalf of a group of citizens requesting that the city hire a water
analyst to respond to questions and complaints respecting water bills. He further
recommended that the council rethink the rate structure and provide for a higher fixed rate
with a lower consumption rate. Mr. Eimers further pointed out that in the opinion of Dr.
Dale Ralston there was good groundwater potential contrary to the reports the city had
seen.
Donnella Boreham appeared and complained that she had just been informed that a new
meter had just installed when she had the impression that the meter had been exchanged
and tested several weeks ago Mr Henderson stated chat he had misundersfaod a reporE
from the water supenritendent- She further stated that the stafement that summer usage`,
in excess of 50,000 gallons could not be correct in as much as there was no meter
installed. She further stated that meters were not read every month. Mr. Henderson
pointed out that meters are, in fact, read every month.
Alana Shoemaker stated that the city should pursue a level pay option so that people
would know how much to set aside. She was also concemed about what happens to
people who can't afford to pay.
Consent Agenda
The following items were on the consent agenda:
• Minutes Of August 28, 1997 - Regular Meeting
• Vendor Invoice Approval List Report Dated Sept 5, 1997
• Payroll Report Dated August 26, 1997
• Contract Approval Request Made By Bob Peckham, Recreation Director —
Bethel Park Church For Gymnastics Program
Ms. Arp requested that the Contract with Bethel Park be removed from the consent agenda.
Ms. Arp then moved to approve the contract with Bethel Park Church conditioned on the
increased rent being covered by increased user fees. Mr. Killen seconded and the motion
carried unanimously.
Ms. Arp moved to approve the Consent Agenda. Mr. Killen seconded and the motion
carried unanimously.
Unfinished Business
Proposed Ordinance No. 713 - Granting a Franchise to Idaho Power Co., - Third
Reading.
Ms. Arp moved to suspend the rules requiring reading in full to permit the third reading of
proposed Ordinance No. 713 by title only. Mr. Killen seconded. At a roll call vote, Ms. Arp,
Mr. Killen, and Mr. Colton voted "aye." The motion carried. Mr. Burton read Proposed
Ordinance No. 713 by title as follows:
An ordinance in accordance with Idaho Code 50-328, 50-329 and 50-329A granting a franchise
to Idaho Power company, A corporation, andto its successors and assigns, to: construct,
maintain andoperate in and upon the present and futures streets, highways and other public
places within the corporate limits of the City of McCall, Idaho, electric utility property and facilities
for supplying electricity and electric service to the city, the inhabitants' thereof, and others for a
term of 20 years, including the nonexclusive right to physically locate and maintain telephone,
cable, fiber optics or other communications facilities; setting forth and agreement not to compete,
reserving power of eminent domain; providing for the payment of franchise fees; and specifying
other limitation, terms and conditions goveming the exercise of said franchise.
Mayor Killen then asked if anyone wished to comment on the proposed ordinance. Krk
Eimers pointed out that the franchise fee would probably be added to residents' power bills
and was thereby a hidden tax. Mayor Killen confirmed that it probably would be added to
power bills but that it was not hidden since it was being done in public. He pointed out that
a franchise agreement allowed the city to receive revenues from govemment and nonprofit
organizations and that the funds would be dedicated to placing certain power service
underground.
Since no one else wished to be heard, Ms. Arp moved to approve adopt Ordinance No.
713. Mr. Colton seconded. At a roll call vote Ms. Arp and Messrs. Colton and Killen voted
"aye." The motion carried.
Sewer Plant Agreement
Ted Whiteman of Payette Lakes Water and Sewer District gave a report and asked that
the effective date of the agreement be January 1, 1998 to allow one of the plant
employees to use his accrued vacation. Mr. IGllen moved to approve the agreement with
the effective date deferred to January 1, 1998. Ms. Arp seconded. Mr. }Olen, Ms. Arp and
Mr. Colton voted "aye." The motion carved.
Carico Subdivision —LID 4
Mr. Burton gave a report conceming the outstanding taxes that were preventing recording
of Balshae Subdivision plat which would grant the city the right-of-way necessary to
complete the project. Mr. Burton had not exhausted getting the county to simply record the
plat but stated that the taxes involved were less than $900. Mr. Killen moved to pay the
property taxes from the council's contingency fund. Mr. Colton seconded and the motion
carried unanimously.
New Business
Proposed changes to Deinhard-Boydstun Connector Route
The council noted a request from the McCall Fire Protection District to change the route of
the proposed Deinhard-Boydstun Connect to provide better access to the west side of the
river. The council by consensus referred the letter to the Transportation Advisory
Committee.
South Loop Waterline
Karl Augustine, Ida Ore, gave a report and presented pay request no. 4 in the amount of
$30,495.01 to Owyhee Construction which completed the city's obligation on the contract
though there were some administrative items to be completed to include a self -appraisal in
compliance with the Rehabilitation act. The council, by consensus appointed Ted Burton
to complete the requirements of the act.
J Ditch On Farm Irrigation progress payment #5 in the amount of $98,701.04 and
. J Ditch Pipeline progress payment #5 _m the,amount of $1411 076.31.
r. Colton=moved foNapprove' the paymenfs. Mr: IGlten-`secondeii antl`theTnotiorycame
unanimously.
Adjustment Of Utility Account —Robert Renfro
Jim Henderson, City Clerk / Treasurer, gave report noting that an adjustment was being
requested because Mr. Renfro's water usage was high due to a leak. The leak had been
repaired but Mr. Henderson noted that the costs of delivery had been incurred. He further
pointed out that the city might consider a policy on leaks that were promptly repaired. After
discussion, Mr. }Gllen moved to approve the recommended denial of adjustment. Ms. Arp
seconded and the motion carried unanimously.
Ad Hoc Committee on Water Rates
Mr. Henderson presented the names of citizens who had expressed an interest in
becoming members of the committee:
• Kirk Eimers
• Wayne Larsen
• Scotty Davenport
• Paul Bianchetti
• Clayton Rudd
• Bill Bayse
• Don Chapman
• Dottie Moore
• Barbara Smith
• Kay DeFranceso
Mr. Killen moved to appoint all who had applied conditioned on their confirmation that they
are willing to serve. Mr. Colton seconded and the motion carried unanimously.
Water Rates for Mixed Commercial and Residential Premises
The council noted a letter from Dr. McManus respecting the billing for Villa Plaza. By
consensus the council agreed to refer the letter to the Ad Hoc Committee on Water Rates.
5
4o
Open Issues On Spring Mountain Ranch Development
Mayor Killen brought this matter from the Information Items. Mr. Killen moved to direct
staff as follows: (1) that the City Engineer move forward with the irrigation system for the
Water Treatment Plant and determine if there will be excess irrigation pipe from the golf
irrigation project; (2) that the Golf Superintendent be briefed on the citys obligations under
the agreement with the Spring Mountain Ranch Limited Partnership. Ms. Arp seconded
and the motion carried unanimously.
Staff Reports
Acting City Manager
• The council noted a written report.
• Mr. Henderson requested that the council consent to his temporary appointment Judy
Sargent as City Treasurer and Cherry Woodbury as City Clerk. Mr. Colton stated that
"temporary" appointments have a way of becoming permanent as was concemed
about that these might somehow be construed as permanent appointments. After
further discussion, Mr. Killen moved to approve the appointment of Judy Sargant as
"Acting City Treasurer" and Cherry Woodbury as "Acting City Clerk" until the earlier of
two weeks after a permanent City Manager assumes duties or December 31, 1997.
• Mr. Henderson reported that he had been discussing the posibility of obtain machines
to verify credit and debit cards and requested authority to sign contracts to obtain three
one for City Hall, one for the Golf Course Restaurant and one for the Pro Shop, the
two latter to be paid from golf course funds and the from the general fund. After
discussion, Mr. Killen moved to approve the contract with Digital Merchant Systems,
Inc. and to authorize the acting City Manager to sign. Ms. Arp seconded and the
motion carried unanimously.
• Mr. Henderson reported that the City had received about 30 City Manager Applications
so far. The council asked that copies be distributed as they came in so they could
review them.
City Attomey
The council noted a written report.
City Engineer
The council noted a written report.
Public Works Director
The council noted a written report.
Mayor and Council Comments and Reports
• Asked about the schedule for paving the bike paths and was informed that the project
would begin the next week or so.
• The council then discussed the September 25th regular meeting in the both Ms. Arp
and Mr. Kllen would not be available. By consensus the City Council decided to
cancel the regular meeting on September 25, 1997.
Ms. Arp
• Asked about the blue curbs in from of the post office. She was informed that the
Code Enforcement Officer was enforcing the two hour parking ordinance and that
some postal employees claimed to have an agreement with the previous City
Administrator. The Chief of Police was working to resolve the conflict and meantime
the Code Enforcement Officer would continue to "ticket' overtime parking.
• Asked about an out -of -city Recreation Card for $20. She pointed out that the card
was contrary to the council's direction in this matter. Staff to investigate and report
back.
Mr. Killen
Stated that he had decided to run for reelection.
Correspondence and Information Items
The following items were received by the council:
• Letter To Alana Shoemaker From Jim Henderson Pertaining To Numerous
Questions And Answers
• Letter To Steve West, DEQ, From Gary Shimun Re Wastewater Treatment and J
Ditch
• Letter To Itch I0nder, Toothman Orton, .From Brian Petersen, Contractors
Northwest, Re Water Treatment Plant Project
•
• Letter To Peter O'Neill, SMR, From Ted Burton Regarding Fall Creek/Blackwell
Lake Water Rights
• Letters To Helen Chenoweth And Mike Crapo From Gary Shimun Re J Ditch
Funding
• Letter To Carla Donica From Judd And Diane DeBoer Regarding Speed Limit On
W Lake
• Letter To Idaho Human Rights Commission From Ted Burton Re 2nd
Discrimination Complaint - Judy Sargent Vs City
. • Letter To Judge Darla Williamson From Ted Burton Conceming Officer Jerry
Summers' Prior Dispute And Employment With The City
• Letter From Gary Shimun Regarding After School Care Program
• Planning And Zoning Commission Minutes Dated September 2, 1997
7
" A r e a O f I m p a c t P l a n n i n g A n d Z o n i n g C o m m i s s i o n M i n u t e s D a t e d A u g u s t 2 6 , 1 9 9 7
" P l a n n i n g A n d Z o n i n g C o m m i s s i o n M i n u t e s D a t e d A u g u s t 2 1 , 1 9 9 7 - S p e c i a l
M e e t i n g
" P l a n n i n g A n d Z o n i n g C o m m i s s i o n M i n u t e s D a t e d A u g u s t 1 9 , 1 9 9 7
" A r e a O f I m p a c t P l a n n i n g A n d Z o n i n g M i n u t e s D a t e d J u l y 2 2 , 1 9 9 7
" P E N P A L G r e e t i n g N o t i c e - W a m i n g H o a x
" N o t i c e F r o m P a y e t t e N a t i o n a l F o r e s t R e T a i l h o l t T i m b e r S a l e
" A c t i o n U p d a t e
A d j o u r n m e n t
W i t h o u t f u r t h e r b u s i n e s s , M r . C o l t o n m o v e d t o a d j o u m . M r . ' G l e n s e c o n d e d a n d t h e
m o t i o n c a r r i e d u n a n i m o u s l y . T h e c o u n c i l a d j o u m e d a t 1 1 : 0 0 P . M .
A T T E S T :
J a m e s H . H e n d e r s o n , C i t y C l e r k
W i l l i a m M . I G l l e n , M a y o r
8
City of McCall
MINUTES
Regular Meeting of the McCall
City Council - Thursday, June 12,
1997
Table of Contents
Call to Order and Roll Call 3
Public Comment 3
Consent Agenda 3
Unfinished Business 4
Ordinance 713 Respecting a Franchise Agreement with Idaho Power Co 4
New Business 5
Bid Openings - Lick Creek Road Paving Project 5
Paving Plan 5
Certificate of Substantial Completion - Water Treatment Plant 5
Change Order #1 - Lift Station #6 (Yacht Club) Upgrade 5
Water and Sewer Capital Fees 5
Professional Services Agreement with J-U-B Engineers -Mather Road Sewer Rehabilitation. 5
Request for Adjustment of Utility Account - Village Square Association 6
Progress Estimate #2 J-Ditch On -Farm Irrigation ($6,902.29) and Progress Estimate #2 J-Ditch
Pipeline ($395,672.86) 6
Award of J-Ditch Contract 6
Pay Request #3 and Change Order #2 East Lake Street Road, Water and Sewer Improvements -
Bezates Construction 6
Golf Course Irrigation Proposal for an Automated Valve. 6
Staff Reports . 6
City Manager Report 6
City Attomey's Report 6
Ordinance No. 714-Respecting Paintball Weapons at an Approved Range 7
City Clerk Treasurer's Report 7
Mayor and Council Comments and Reports 7
Mr. Martens 7
Mr. Colton 7
Ms. Arp 8
Mr. Killen 8
Correspondence and Information Items 8
Adjoumment 10
2
Minutes -McCall City Council
Regular Meeting Thursday, June 12, 1997
Call to Order and Roll Call.
• The meeting was called to order by Mayor Killen at 7:00 P.M.
• Ms. Arp and Messrs. Colton, Martens, and Killen answered the roll call. Mr. Eckhardt
was absent. A quorum was present. City Staff present included: (1) City Manager
Gary Shimun; (2) City Attomey Ted Burton; (3) City Clerk -Treasurer Jim Henderson;
(4) City Engineer Jackie DeC1ue; (5) Staff Planner Andy Locke; and (6) Public Works
Director Bill Keating.
Public- Comment
The mayor then called for public comment. The following were heard:
• Curtis Spaulding requested that the tree removal .from rights -of -way along Forest
Street and Mather Road delayed in order to receive public comment. The council
referred the matter to staff for a report.
• Andy Locke requested that the final plat for Jacob's Manor be added to the agenda. It
was so ordered. Mr. Locke then reported the findings and conclusions of the
Planning and Zoning Commission. Mr. Colton moved to adopt the findings and
conclusions of the commission as those of the council and to approve the plat except
that the word "preliminary' in Finding 4 be amended to read "final" and subject to the
two conditions in the commissions conclusions. Ms. Arp seconded and the motion
carried unanimously.
• The council then discussed the Post Office location. Mr. Burton reported that the
U.S.P.S. Site Selection Committee wanted to report on its feasibility analyses. The
council had not received input from all of its advisory committees. Rick Fereday
reported that he could not speak for the Downtown Planning Subcommittee but that
the Post Office Vision Committee had ranked the sites as follows: (1) Urban Renewal
Site (E. Pine St.); (2) Derr Site (E. Park St.); (3) Hehr Site ( E. Hemlock St. & Mill
Alley); and (4) Deinhard Site. The council then discussed scheduling the U.S.P.S. Site
Selection Committee request. After discussion it was suggested that a special
meeting be called for June 25 or 26 after Mr. Burton had coordinated further with the
committee.
Consent Agenda
The following items were included on the consent agenda:
•Minutes of May 22, 1997 - Regular Meeting
3
* Minutes of May 21, 1997 - Special Meeting
•Library. Board Minutes dated May 15, 1997
•Vender Invoice Approval List dated June.6, 1997
* Payroll Report dated June 2, 1997
* Payroll Report dated May 30, 1997
* Payroll Report dated May 20, 1997
*Acknowledge Receipt of Claim for Damage or Injury by Larry Baum
* Pay Request No. 4 for $57,312.52 for work done on Water Pump Stations by Ross
Enterprises.
*Approval of Hand Check for Surplus Equipment Auction Sale
Mr. Colton moved to approve the consent agenda. Ms. Arp seconded and the motion
carried unanimously.
Unfinished Business
Ordinance 713 Respecting a Franchise Agreement with Idaho Power Co.
Mr. Shimun reported that he had passed to Idaho Power some of the council's concem
and that Idaho Power had not yet completed addressing those concems. Mr. Killen then
moved to suspend the rules requiring reading in full to permit the second reading of
Ordinance No. 713 by title only. Mr. Martens seconded. At a roll call vote, Messrs. Killen,
Martens, Colton and Ms. Arp voted "aye." Mr. Burton then read the proposed Ordinance
by title as follows:
An ordinance in accordance with Idaho Code 50-328,.50-329 and 50-239A granting a franchise
to Idaho Power Company, a Corporation, and to its successors and assigns, to construct,
maintain and operate in and upon the present and future streets, highways and other public
places within the corporate limits of the City of McCall, Idaho, electric. utility property and facilities
for supplying electricity and electrical service to the city, the inhabitants thereof, and others for a
term of _ years, including the nonexclusive right to locate and maintain -telephone, cable, fiber
optics or other communications facilities; setting forth an agreement not to compete, reserving
power of eminent domain; providing for the payment of franchise fees; and specifying other
limitations, terms and conditions governing the exercise of said franchise.
4
New Business
Bide Openings -'Lick Creek"Road Paving Proj
Mr. Keating gave a report of the bids received and recommended award of the bid to
Boise Paving and Asphalt Co. Mr. Colton moved to award the contract to Boise Paving for
the bid amount of $71,756.00. Ms. Arp seconded and the motion carried unanimously._
Paving Plan
Mr. Keating presented an updated 5-year paving plan. Mr. Martens noted that several
items that were fairly early in the old plan had been slipped significantly. Council directed
staff to reconcile the new plan with the old one and to be prepared to explain changes.
Certificate of Substantial Completion - Water Treatment Plant
Mr. Shimun reported that there was still a significant "punch" list and recommended that
the matter be deferred. The council took no action.
Change Order #1 - Lift Station #6 (Yacht Club) Upgrade
Ms. DeClue gave a report noting that the change order amended the completion time and
was needed due to the previous unavailability of the necessary pumps. Mr. Martens
moved to approve the change order. Mr. Colton seconded and the motion carried
unanimously.
Water and Sewer Capital Improvement Fees
Ms. DeClue presented a report proposing capital improvement fees for the following:
• Finishing Touch/Deinhard Lane Suite B/$1,944
• Dollar Mart/Deinhard Lane Suite D/$1,944
• McCall Bakery/Deinhard Lane Suite C/$6,080
• McCall Air Taxi/McCall Airport/$998
Mr. Killen moved to approve the fees recommended. Mr. Martens seconded and the
motion carried unanimously. L
Professional Services Agreement with J-U-B Engineers -Mather Road Sewer
Rehabilitation.
Ms. DeClue gave a report. Mr. Colton moved to approve the agreement. Ms. Arp
seconded. At a roll call vote, Mr. Colton, Ms. Arp, Mr. Martens and Mr. Killen voted "aye."
The motion carried.
5
Request for Adjustment of Utility Account - Village Square Association
Mr. Henderson gave a report pointing out that since last summer, the association's water
consumption had increased dramatically. This was discovered to be due to a broken
water line. Since sewer fees are tied to water consumption, the association was
requesting an adjustment to its sewer fee in as much as water lost from the broken line did
not enter the sewer system. The requested amount of $1,907.18 represented the
difference between the historical average consumption and actual charges from October
2, 1996. Mr. Henderson reported that he had verified and concurred with the computation
and recommended that the adjustment be approved. Ms. Arp moved to approve the
adjustment. Mr. Killen seconded and the motion carried unanimously.
Progress Estimate #2 J-Ditch On -Farm Irrigation ($6,902.29) and Progress
Estimate #2 J-Ditch Pipeline ($395,672.86)
Mr. Shimun gave a report. Mr. Killen moved to approve both requests. Mr. Colton
seconded and the motion carried unanimously.
Award of J-Ditch Contract
Mr. Shimun gave a report. Mr. Martens moved to approve the contract award. Mr. Colton
seconded. At a roll call vote Mr. Martens, Mr. Colton, Ms. Arp and Mr. Killen voted "aye."
The motion carried.
Pay Request #3 and Change Order #2 East Lake Street Road, Water and Sewer
Improvements - Bezates Construction
Mr. Shimun gave a report. Mr. Colton moved to approve the pay request in the amount of
$61,188.63 and to approve the change order in the amount of $575.00. Ms. Arp seconded
and the motion carried unanimously.
Golf Course Irrigation Proposal for an Automated Valve
Mr. Shimun gave a report noting that the proposal was to install an automated valve on the
irrigation pond fill line. The council by consensus directed staff to get a formal proposal
and bring the matter back to the council.
Staff Reports
City Manager Report
• The council noted a written request.
• Mr. Shimun provided the council with an evaluation form and last years goals and
objectives. He further provided a new set of goals and objectives for the coming year
in anticipation of his annual performance evaluation in July.
City Attomey's Report
• The council noted a wriften report.
6
" M r . B u r t o n r e p o r t e d t h a t t h e D A S C O e q u i p m e n t h a d b e e n r e m o v e d f r o m t h e N a m e I I
P r o p e r t y .
L r B u r t o n t h e n , p r o p o s e d t h e p a s s a g e o f O r d i n a n c e N o 7 1 4 r e l a t i n g t o t h e u s e o f I ,
p a i n t b a l l w e a p o n s a t a n a p p r o v e d r a n g e o r c o u r s e . M r . K i l l e n m o v e d t o s u s p e n d t h e
r u l e s r e q u i r i n g t h r e e r e a d i n g s i n f u l l , t o p e r m i t t h e p a s s a g e o f O r d i n a n c e N o . 7 1 4 a f t e r
o n e r e a d i n g b y t i t l e o n l y . M r . M a r t e n s s e c o n d e d . A t a r o l l c a l l v o t e , M r . K i l l e n , M r .
M a r t e n s , M r . C o l t o n a n d M s . A r p v o t e d " a y e . " T h e m o t i o n c a r r i e d . M r . B u r t o n t h e n
r e a d t h e p r o p o s e d o r d i n a n c e b y t i t l e a s f o l l o w s :
" A n o r d i n a n c e o f t h e C i t y o f M c C a l l , I d a h o , r e l a t i n g t o t h e u s e o f p a i n t b a l l w e a p o n s a t a n d
a p p r o v e d r a n g e . o r c o u r s e ; a n d p r o v i d i n g a n e f f e c t i v e d a t e .
" M r . K i l l e n t h e n m o v e d t o a d o p t O r d i n a n c e N o . 7 . 1 4 . M s . A r p s e c o n d e d . A t a r o l l c a l l
v o t e , M r . K i l l e n , M s . A r p , M r . C o l t o n a n d M r . M a r t e n s v o t e d " a y e . " T h e m o t i o n c a r r i e d .
" M r . B u r t o n t h e n p r e s e n t e d a s e t t l e m e n t o n t h e G o l f C a r t S t o r a g e B u i l d i n g f o r $ 2 3 , 0 0 0 .
M r . M a r t e n s m o v e d t o a p p r o v e t h e s e t t l e m e n t . M r . C o l t o n s e c o n d e d . A t a r o l l c a l l
v o t e , M r . M a r t e n s , M r . C o l t o n , M s . A r p a n d M r . K l l e n v o t e d " a y e . "
C i t y . C l e r k T r e a s u r e r ' s R e p o r t
" T h e c o u n c i l n o t e d a w r i t t e n r e p o r t .
" M r . H e n d e r s o n r e p o r t e d o n t h e s u r p l u s p r o p e r t y s a l e a n d t h e p r o g r e s s o f t h e ' F Y 1 9 9 7 -
9 8 B u d g e t p r e p a r a t i o n
M a y o r a n d C o u n c i l C o m m e n t s a n d R e p o r t s
M r . M a r t e n s
" C o m m e n t e d o n t h e g r a d u a l i n c r e a s e o f c o u n c i l i t e m s p r e s e n t e d a t t h e m e e t i n g a s
o p p o s e d t o b e i n g i n t h e c o u n c i l p a c k e t .
" R e p o r t e d a n u p c o m i n g m e e t i n g o f t h e I d a h o T r a n s p o r t a t i o n D e p a r t m e n t a n d
d i s c u s s i o n o f t h e D e i n h a r d - B o y d s t u n C o n n e c t o r .
" P o i n t e d o u t a n a c c u m u l a t i o n o f t r a s h a t t h e S t e i n & V o l k p r o p e r t y o n M i s s i o n S t r e e t . .
" N o t e d t h a t t h e c i t y s h o u l d m a k e e v e r y e f f o r t t o p r e s e r v e t r e e s i n t h e p u b l i c r i g h t s - o f -
w a y a n d s u g g e s t e d t h a t w h e n t r e e s m u s t b e r e m o v e d , p l a n t i n g n e w o n e s a t m o r e
a p p r o p r i a t e l o c a t i o n s m i g h t b e a n a p p r o a c h .
M r . C o l t o n
" N o t e d t h a t t h e m e r r y - g o - r o u n d h a d b e e n r e i n s t a l l e d a t R o t a r y P a r k a n d w a s b e i n g
e n j o y e d b y c h i l d r e n .
r
7
Ms. Arp
Mr. Killen
• Pointed out that he had seen some cars being sold at the McCall Airport that looked
like a dealer operation. Mr. Shimun reported the he had seen the cars also and was
investigating.
• Asked for and was provided a copy of the proposed sign ordinance.
• Asked if there had been a resolution of the Cemetery property lines with respect to the
Deinhard relocation project. Mr. Shimun reported that a meeting had been scheduled
with the Cemetery District Board on June 17.
• Reported that Hole #4 of the new nine holes which was over a wetlands had been tom
up. That area may be off limits under the 404wetlands permit.
Correspondence and Information Items
The following items were reviewed and acknowledged by the council:
• A memo to Mike Combs from Rich fender, Toothman-Orton Re: Golf Course
Irrigation Water System Improvement Project
• A letter to Mike Combs from Rich Kinder, Toothman-Orton Re: Domestic Water
Service to Public Facilities at the Golf Course
• A letter to Brian Peterson, Contractors Northwest from Rich lender, Toothman Orton
Re: Completion Certificate on Water Treatment Plant
• A memo to Rich Kinder, Toothman-Orton from Ted Burton Re: Change Order No.
3—Drawing C3 Punch List
• A letter to Rich Kinder, Toothman-Orton from Brian Petersen, Contractors Northwest
Re: Water Treatment Plant Project
• A letter to Dave Ross, Ross Enterprises, from Rich lender, Toothman-Orton Re: Fire
Hydrant Assembly Connection
• A letter to Jackie DeClue from Gary Nimes, White -Leasure Re: Sewer and Water
Capitalization Charges —Marketplace at McCall
• A letter to Paul King, Department of Transportation, from Mark Limbaugh, Lake
Reservoir Company, Re: Piles of Asphalt and Debris Left on Property.
• A letter to Gary Shimun from Joe King, DEQ Re: Cascade Watershed Technical
Advisory Committee —June Meeting
• A Letter of Invitation to Gary Shimun from Stephen West, DEQ to J-Ditch Project
Ground Breaking Ceremony
8
" A n E x e c u t i v e S u m m a r y o f t h e T e c h n i c a l S t u d y R e p o r t B i g P a y e t t e L a k e W a t e r
Q u a l i t y C o u n c i l
l e t t e r t o ' R i c k W e l c h W e s t C e n t r a l H i g h l a n d s R C B D C o u n c i l f r o m R u s s e l ; ;
M a n w a r i n g , D e p a r t m e n t o f A g r i c u l t u r e , R e : W C H R C B b N a r r a t i v e i R e p o r t - J a n u a r y
t o M a y 1 9 9 7
" A f l y e r o n W a t e r m i l f o i l W e e d
" A l e t t e r t o J o h n S c h r o e d e r , S c h r o e d e r a n d L e z a m i z , f r o m T e d B u r t o n R e : W y m a n
S t e e l B u i l d i n g a t G o l f C o u r s e
" M e m o s t o v a r i o u s c o m m i t t e e s f r o m T e d B u r t o n p r o p o s i n g B u s i n e s s L i c e n s e
O r d i n a n c e
" A W a r r a n t y D e e d f o r R e a l P r o p e r t y f r o m B a r b a r a A d y t o t h e C i t y o f M c C a l l
" A G r a n t D e e d G r a n t i n g R i g h t - o f - W a y f r o m M i c h a e l a n d D i a n e L o g a n t o t h e C i t y o f
M c C a l l
" A L e t t e r o f I n t e n t t o L a r r y S m i t h , O u r S a v i o r L u t h e r a n C h u r c h f r o m G a r y S h i m u n R e :
D e i n h a r d B o y d s t u n R i g h t - o f - W a y
" A m e m o t o C o u n c i l f r o m B i l l K e a t i n g R e : D u s t O i l a n d C h i p S e a l P r o j e c t s
" I C R M P L o s s R u n f o r M a y 1 9 9 7
" L o c a l H i g h w a y T e c h n i c a l N e w s l e t t e r
" A l e t t e r t o I d a h o C i t y M a n a g e r s a n d A d m i n i s t r a t o r s A s s o c i a t i o n f r o m G a r y S h i m u n R e :
C o n f e r e n c e i n S u n V a l l e y
" A l e t t e r t o C a r l W i l g u s , I d a h o T r a v e l C o u n c i l s u p p o r t i n g t h e C h a m b e r o f C o m m e r c e i n
s u b m i t t i n g a g r a n t a p p l i c a t i o n
" A t h a n k y o u l e t t e r t o G a r y S h i m u n f r o m J o y M c M i n n , I n v e s t o r s T i t l e , f o r s p e a k i n g a t a
m e e t i n g .
" . B i g P a y e t t e L a k e W a t e r Q u a l i t y C o u n c i l N e w s l e t t e r
" T h e M e s s e n g e r N e w s l e t t e r
" A T I N e w s l e t t e r
" T h e C o u n c i l A c t i o n U p d a t e .
9
MINUTES
McCall City Council
Regular Meeting, Thursday, May 22,1997
Call To Order And Roll Call
1. The meeting was called to order at 7:00 P.M. by Mayor Killen.
2. Mr. Martens, Mr. Colton, Ms. Arp and Mr. Killen answered the roll call. A quorum was
present. City Manager Gary Shimun, City Attorney Ted Burton, City Clerk -Treasurer Jim
Henderson, Staff Planner Andy Locke, Recreation Director Bob Peckham and Golf
Superintendent Mike Combs of the City Staff were also present.
Minutes Of Previous Meeting(s)
3_. Minutes Of May 1, 1997 - Regular Meeting Mr. Martens moved to approve the minutes.
Mr. Colton seconded and the motion carried unanimously.
Payment Of Claims
4. Vendor Invoice Approval List Report Dated May 16, 1997 - Mr. Colton moved to
approve the claims listed on the report. Mr. Martens seconded and the motion carried
unanimously.
5. Payroll Report Dated May 6, 1997- Mr. Martens moved to approve the payroll. Ms. Arp
seconded and the motion carried unanimously.
6. Payroll Report Dated May S, 1997 - Mr. Colton moved to approve the payroll. Mr.
Killen seconded and the motion carried unanimously.
Public Comment
The mayor called for public comment. The following were heard:
7. Duane Smith -Mr. Smith commented regarding the water rates to be discussed later on
the agenda.
8. P&Z Findings and Conclusions in. Support of Approval of a Conditional Use Permit -
Pat and J.L. Scott Guest House - This item was moved forward on the agenda. Mr.
Locke gave a report. Ms. Arp moved to adopt the Findings and Conclusions of the
Planning and Zoning Commission and approve the Conditional Use Permit. Mr. Colton
seconded and the motion carried unanimously.
Public Hearing Noticed For 7:15 P.M.
9. Water Rates And Golf Fees -
Water Rates The mayor stated that it was the time and place properly noticed for a
hearing on water rates. Mr. Henderson reported on his analysis of system usage and costs
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Page 1
and presented two alternatives. The mayor then opened the hearing to public testimony.
The following were heard:
Joanne Catlett provided copies of water rates for Sun Valley, Meridian and Boise and
questioned the city's need to increase the rates.
Duane Smith stated that costs may effect his ability to operate a profitable car wash.
Mike Anderson applauded flow based charges and suggested lower base charges. He
further suggested that the council consider negotiated rates for high water users.
Golf Fees -Mayor Killen introduced the hearing on Golf Fees. He then opened the
meeting to public testimony. No one wished to be heard. The mayor then closed the
hearing to public testimony.
After discussion, Mr. Killen moved to adopt the fee schedule adopted and effective on
April 17, 1997. Ms. Arp seconded and the motion carried unanimously.
After further discussion, Ms. Arp moved to adopt Alternative One set forth in the
Municipal Water Rate Analysis. Mr. Colton seconded and the motion carried
unanimously.
Public Comment (Continued)
10. Airport Master Plan - .Chuck Sundby gave a report on the status of the Deinhard
Realignment Project (ALP 06). Dave Rickerson of Transportation Solutions reported on
the Airport Master Plan development and status.
11. P & Z Findings And Conclusions In Support Of Approval Of Construction In Scenic
Route Overlay District - Cantrell - Commercial Structure Mr. Colton moved to adopt
the Findings, Conclusions and Recommendations of the Planning and Zoning
Commission. Mr. Martens seconded and the motion carried unanimously.
12. McCall Paintball Club And BMX Bike Track - Bob Peckham gave report. Mr. Colton
moved to approve the request subject to the comments and conditions of the Parks and
Recreation Committee. Ms. Arp seconded and the motion carried unanimously.
13. Summary Of Bids - Golf Course Equipment Mike Combs gave a report. Mr.
Henderson commented that the four items were within the budget amount, but that only
two items were itemized in the budget. Mr. Colton moved to approve the purchase of all
four items for a total of $61,995. Ms. Arp seconded. At a roll call vote, Mr. Colton, Ms.
Arp, Mr. Martens and Mr. Killen voted "aye." The motion carried.
14. P & Z Findings And Conclusions In Support Of Approval Of Conditional Use Permit -
Eagle Crest - SMR Block 11 Mr. Locke gave a report. Mr. Killen moved to approve the
Commission's Findings, Conclusions and Recommendations concerning the Conditional
Use Permit subject to more specific language for condition 3a respecting impact on the
property to the west and written confirmation that this development represents 56 lots
toward the 4001ots that will require O'Neill Enterprises to construct the Eastside Bypass.
Mr. Martens seconded and the motion carried unanimously.
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Paee 2
Old Business
15. Simplot Easement Agreement - Mr. Burton gave a report and recommended that the
council approve the substance of the agreement and authorize the mayor to sign the final
agreement if it did contain any substantive departures from the form before the council.
Mr. Killen moved to accept the staff recommendation. Mr. Colton seconded and the
motion carried unanimously.
New Business
16. Bid Openings Chip Sealing and Dust Oiling Mr. Henderson gave a report. The council
reviewed a written report and recommendation from Bill Keating, Public Works
Direction. After discussion, Mr. Martens moved to approve the bids as follows:
- Chip Sealing Project - to Snake River Construction for $93,925.37
- Dust Oiling Project - to Lyman Dust Control, Inc. at $0.84 per gallon with an estimated
costs of $22,008.00.
Mr. Colton seconded and the motion carried unanimously.
17. Memorandum Of Understanding And Ordinance Pertaining To Idaho Power
Franchise - Mr. Shimun gave a report. Mr. Killen outlined some concerns. Mr. Martens
moved to suspend the rules requiring reading in full to permit the first reading of
proposed Ordinance No. 713 be by title only. Mr. Killen seconded. At a roll call vote,
Mr. Martens, Mr. Killen, Mr. Colton and Ms. Arp voted "aye." The motion carried. Mr.
Burton read the ordinance by title as follows: "AN ORDINANCE IN ACCORDANCE
WITH IDAHO POWER CODE 50-328, 50-329, AND 50-329A GRANTING A
FRANCHISE TO IDAHO POWER COMPANY, A CORPORATION, AND TO ITS
SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN AND OPERATE IN
AND UPON THE PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER
PUBLIC PLACES WITHIN THE CORPORATE LIlVIITS OF THE CITY OF McCALL,
IDAHO, ELECTRICAL UTILITY PROPERTY AND FACITLIES FOR SUPPLYING
ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS
THEREOF, AND OTHERS FOR A TERM OF YEARS, INCLUDING THE
NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN
TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS
FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE,
RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT
OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND.
CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE."
Council then ordered the matter to the next agenda.
18. Joint Powers Agreement - JDitch - Mr. Burton gave a report and recommended that the
council approve the substance of the agreement and to authorize the mayor to sign the
final agreement if it did contain any substantive departures from the form before the
council. Ms. Arp moved to approve the staff recommendation. Mr. Killen_ seconded and
the motion carried unanimously.
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Pate 3
19. Request For Reimbursement - Progress Estimate #1- J Ditch Pipeline Association,
Inc. Mr. Henderson gave a report. Mr. Killen moved to approve the Pay Request. Mr.
Martens seconded and the motion carried unanimously.
20. Non Resident Fees - City Recreation Department -Mr. Peckham gave a report and
recommendation that programs contain a nonresidential rate 10% higher than the resident
rate. Mr. Killen moved to approve the recommendation. Mr. Colton seconded. At a
voice vote, Mr. Killen and Mr. Colton voted "aye" and Mr. Martens and Ms. Arp voted
"Nay." The motion failed. Mr. Martens moved to approve the recommendation but with
a nonresident fee of 25% higher than the resident rate. Ms. Arp seconded. At a voice
vote, Mr. Martens and Ms. Arp voted "aye" and Mr. Killen and Mr. Colton voted "Nay."
The motion failed. Mr. Martens moved to approve the recommendation but with a
nonresident fee of 20% higher than the resident rate. Mr. Killen seconded. At a voice
vote, Mr. Martens, Mr. Killen and Ms. Arp voted "aye" and Mr. Colton voted "Nay."
The motion carried.
Mr. Peckham then gave a report on the a proposed BMX track at Riverfront Park. Mr.
Martens requested that the Parks and Recreation Advisory Committee look at a Long
Range Plan for Riverfront Park since there are many groups looking at that area. Mr.
Colton moved to approve the proposal. Ms. Arp seconded and the motion carried
unanimously.
21. Resolution 4-97 Accepting Grant Offer SG-1894-04. Mr. Killen moved to accept the
grant, adopt Resolution 4-97 and authorize the mayor to sign. Mr. Martens seconded and
the motion carried unanimously.
22. Water And Sewer Capital Improvement Charges - The Name Dropper - Ms. DeClue
gave a report. Mr. Killen moved to approve the recommendation. Mr. Martens seconded
and the motion carried unanimously.
23. Idaho Work Experience Program Mr. Henderson reported on this program which is to
temporarily place welfare recipients with employers to gain job experience. The council
took no action.
24. Volunteer Award Nominations - Robert Wood and Roy Watson Awards The council,
by consensus agreed to nominate Scott Davenport. Mr. Killen will write a letter of
recommendation.
25. AIC Policy And Resolutions Committee - Mr. Killen asked if any council members
would be able to attend the AIC Policy and Resolutions Committee meeting in Sun
Valley. No one was able to attend and the council took no action.
Consent Calendar
26. Letter To Gary Shimun From Steve Millemann, Millemann, Pittenger & McMahan,
Regarding Brian Charles' Property
27. EPA Region 10 Community Based Environmental Protection Grants Initiative
28. McCall Area Chamber Of Commerce Ballot
29. Memo To Gary Shimun From Rich Kinder, Toothman Orton, Re: Grading Plan Water
Treatment Plant
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Paue 4
30. Letter To Rich Kinder, Toothman Orton, from Brian Petersen, Contractors Northwest,
Regarding Water Treatment Plant Project
31. Letter To Brian Petersen, Contractors Northwest, From Rich Kinder, Toothman Orton,
Concerning Chlorine Analyzer - Water Treatment Plant
•32. Letter From US Department Of Interior Relating To Interested Parties In Reclamation's
Water Recycling Initiative
33. Letter To Wayne VanCour From Joe King, DEQ, Re Cascade Reservoir Coordination
Council - May Meeting
34. Memo To Lumberman's Building Centers From Bill Keating Re Water Meter Connection
35. Letter To Gary Himes, White Leisure Development Co., From Jackie DeClue Regarding
Water And Sewer Capitalization - Fly Fishing Shop And The Name Dropper
36. Letter To Monte Marchus, DEQ, From Jackie DeClue Pertaining To Stibnite Street Water
Line Improvements
37. Memo To Sue Anderson From Bill Keating Concerning Sewer Hook Up On 927 Lick
Creek Road
38. US Post Office Vision Announcement - Short List Of Sites
39. Letter To US Postal Service From Ken Twergo, Broker, By Ted Burton Re Intent To Offer
40. Letter From Ron Coil And Nicki Gustin Concerning Proposed Post Office Site
41. Letter To Diane Mansisidor, McCall Senior Citizens, From Jim Henderson Regarding
Lease
42. Bulletin On Local Highway Jurisdictions' Response On Transportation Resources
Management
43. ICRMP Loss Run For Month Of April
44. State Insurance Fund Report Of Claims
45. Controlled Substance Testing Report
46. Complaint Letter To Gary Shimun From Cliff Lee Regarding Paving Of Thula Street
47. Memo To Gary Shimun From Bill Keating Re Summer Digging Schedule
48. Letter From Randy Shroll, Department Of Commerce, Re Potential Business Prospects
49. Letter Of Thanks To Bill Killen From NancyNadolski, Healthwise Communities Project
50. Letter To Bill Killen From Larry Smith, VALUED Inc, Regarding Program Plan -
51. Letter Of Thanks To Bob Peckham From Mike Wetherell, Hyde Wetherell Bray Haff &
French
52. AIC Policy & Resolutions Committee Meeting
53. P & Z Findings And Conclusions In Support Of Approval Of Preliminary Plat Of
Subdivision - SMR Phase 3
54. P & Z Findings And Conclusions In Support Of Approval Of Preliminary Plat Of
Subdivision - SMR Block 11
55. P & Z Findings And Conclusions In Support Of Approval Of Scenic Highway District
Construction - Hometown Pizza
56. P & Z Findings And Conclusions In Support Of Approval Of Scenic Highway District
Construction Cyber Chamber
57. Impact Area P & Z Joint Commissions Minutes Dated May 5, 1997
58. Impact Area P & Z Joint Commissions Minutes Dated April 28, 1997
59. City Impact Area P & Z Commission Minutes Dated April 8, 1997
60. West Central Highlands RC & D Council Agenda And Meeting Minutes
61. The Bottom Line Bulletin
62. Action Update
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Pase 5
Staff Reports
63. City Manager. -
a. The council noted a written report.
b. Mr. Shimun reported on his discussion with Phil Choate of Ida -Ore respecting two
projects for possible ICDBG funding, one of which is the Deinhardt-Boydstun Connector.
64. City Attorney -
a. The council noted a written report.
b. Mr. Burton reported on an intention by the McCall Urban Renewal Agency and
others to offer to sell land for a post office site.
c. Mr. Burton reported on his notiations with the Goodman Family regarding trading real
property.
d. After discussion, Mr. Killen directed the City Attorney to Proceed with judical
condemnation of the Golf Cart Rental Building.
65. City Clerk/Treasurer
a. Mr. Henderson reported on his attendance at the Mountain West Municipal Clerks
And Treasurers Institute.
b. Request For Hand Check Approval For June Utility Billing -Mr. Martens
moved to approve the issuance of a hand check for the June utility bills. Mr. Colton
seconded and the motion carried unanimously.
66. City Engineer -- The council noted a written report.
67. Public Works Director -- The council noted a written report.
68. Recreation Director -- The council noted a written report.
Mayor and Council Comments and Reports '
69. Mr. Colton -
a. Asked about Chief Donica's condition. Mr. Shimun reported that she has some
tests conducted that were not conclusive.
b. Asked Mr. Shimun to remind Mike Combs that the merry-go-round for Rotary
Park needed to be repaired and reinstalled.
Minutes, McCall City Council
Regular Meeting, May 22, 1997
Paee 6
70. Mrs. Arp -
a. Asked about Bike Paths and who is responsible to clean them. Mr. Shimun
reported that they are public rights of way and city has a street sweeper for that purpose.
b. Asked to consider the City Attorney Proposals Received. Mr. Shimun gave a .
report. After discusion, Mr. Colton moved to reject all proposals with thanks to the
parties concerned. Ms. Arp seconded and the motion carried unanimously.
71. Mr. Martens -
a. Asked if the Transportation Committee is working on a master plan and was
informed that it is.
b. Conveyed to staff a citizen's compliment about the Public Works Department's
resolution of a drainage problem at the east end of Colorado Street.
74. Mr. Killen - Reported that he had heard that the golf course irrigation contractor would be
back on the job on May 26`h and that the contractor needed to complete the work on Number 18
as the excavations had settled to well below ground level.
Adjournment
75. Without further business, Mr. Colton moved to adjourn. Mr. Killen seconded and the
motion carried unanimously. The council adjourned at 1:05 A.M. May 23, 19
ATTEST:
William M. Killen, Mayor
James H. Henderson, City Clerk
Minutes, McCall City Council.
Regular Meeting, May 22, 1997
Pase 7
EXHIBIT B
PAGE 11 - THE STAR -NEWS - THURSDAY, OCTOBER 9, 1
PUBLIC NOTICES
AND ESCROW COMPANY. •
Said sale will be made without covenant or
warranty regarding title, possession, orencum-
brances, to satisfy the obligations secured by
and pursuant to the power of sale conferred in
the Deed of Trust, dated April 30, 1996 by
MICHAEL L. EVERHART AND JENNIFER
J. EVERHART as Grantors to Mountain Title,
& Escrow Company, Inc. as Trustee, for the
benefit and security of Beheficial Mortgage
Co. of Idaho as Beneficiary recorded on the 1 st
day of May, 1996, in the official records of
Valley County, Idaho Record's Instrument No.
217831. The Grantors named herein are listed
to comply with Section 45-1506 (4) (a) of the
Idaho Code. No representation is made whether
or not they are currently responsible for the
obligation listed herein.
Foreclosure is being effected because of
default in the payment of the obligation due and
owing from the Grantor to Beneficiary and
evidenced by a Promissory Note, which said
obligation is secured by the said Deed of Trust;
said default consisting of: payments in the
amount of $680.11 due for May, June, July,
August, 1997 and each and every month there-
after plus delinquent interest and any late
charges for a total arrearage at this time in the
amount of $2610.70. Payment of all delinquent
taxes and insurance.
By reason of said default, the Beneficiary
has exercised its option in the Deed of Trust to
declare the entire indebtedness and accrued
interest, late charges, attomey's fees, trustee's
fees and other costs or expenses associated
with this foreclosure to be due and payable.
The principal balance owing as of this date
is $61,334.41 plus variable interest at a current
rate of 13.00% per annum, and any other costs
or expenses associated with this foreclosure as
provided by the Deed of Trust, the Promissory
Note or Idaho Law.
Dated: this 19th day of September, 1997
Trustee: Mountain Title & Escrow Com-
pany,lnc.
By: Colleen L. Cole, Corporate Secretary
4t10/30
ORDINANCES
These notices give the public a look at
the exact contents of ordinances local
governments are considering for adoption
in case you have concerns or wish to
comment.
ORDINANCE NO.713
"AN ORDINANCE IN ACCORDANCE
WiTH IDAHO CODE 50-328, 50-329 AND
50-329A GRANTING A FRANCHISE TO
iDAHO POW ERCOMPANY, A CORPORA-
TION, AND TO ITS SUCCESSORS AND
ASSIGNS, TO CONSTRUCT, MAINTAIN
AND OPERATE IN AND UPON THE
PRESENT AND FUTURE STREETS, HIGH-
WAYS AND OTHER PUBLIC PLACES
WITHIN THE CORPORATE LIMITS OF
THE CiTY OF McCALL, IDAHO, ELEC-
TRIC UTILITY PROPERTY AND
FACILITIES FOR SUPPLYING ELECTRIC-
ITY AND ELECTRIC SERVICE TO THE
CITY,THEINHABITANTSTHEREOF, AND
OTHERS FOR A TERM OF 20 YEARS, IN-
CLUDiNG THE NONEXCLUSIVE RIGHT
TO PHYSICALLY LOCATE AND MAIN-
TAIN TELEPHONE, CABLE, FIBER
OPTICS OR OTHER COMMUNICATIONS
FACILITIES; SETTING FORTHAN AGREE-
MENT NOT TO COMPETE, RESERVING
POWER OF EMINENT DOMAIN; PROVID-
ING FOR THE PAYMENT OF FRANCHISE
FEES; AND SPECIFYING OTHER LIMITA-
TIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID
FRANCHISE."
BE IT ORDAINED BY, THE MAYOR
AND COUNCIL OF THE CITY OF McCALL,
IDAHO THAT;
SECTION 1.The City of McCall, Idaho
(hereinafter called the "City") hereby grants to
IDAHO POWER COMPANY, a corporation,
and to its successors and assigns (hereinafter
called the "Grantee") the right, (subject to the
rights of the City set forth in Section 14 hereof),
privilege and franchise for a period of twenty
(20) years from and after September 'I 1, 1997,
however, with the right to amend by mutual
agreement in accordance with Section 15, to
construct, maintain and operate in and upon the
present and future streets, alleys, highways and
other public places within the corporate limits
of the City, electric utility property and facili-
ties for supplying 'electricity to the City, and
the inhabitants thereof, and to persons and
corporations beyond the limits of the City,
including the nonexclusive right to physically
locate and maintain telephone, cable, fiber
optics or other communications facilities of
the Grantee or other parties, (provided, that'•
Grantee shall comply with the City's require-
ments for cable system franchises) all subject
to the terms and conditions hereinafter speci-
fied. In the case of annexation of property to
the corporate limit, such area will be consid-
ered under this agreement, upon effective date
of the annexation, subject to Section 9 hereof.
All such electric utility property and facilities
now maintained by the Grantee within the
streets, alleys, highways and other public places
within the corporate limits of the City shall be
deemed covered by this ordinance as provided
herein.
SECTION 2.A11 of the Grantee's electric
property and facilities in and upon the present
and future streets, alleys, highways and public
places within the corporate limits of the City
shall be constructed and at all times main-
tained in good order and condition and in
accordance with standard engineering prac-
tices and all applicable safely codes and lawful
governmental regulations, including all appli-
cable state and federal regulations and all
construction standards presently in effect by
the Idaho Public Utilities Commission or
adopted by that Commission during the term
of this franchise agreement.
SECTION 3.Upon request of the City, the
Grantee shall relocate its facilities as neces-
sary within the present and future streets, alleys,
highways and other public places owned by
the City. The City shall have no responsibility
for the costs of such relocations. The Grantee
shall bear the cost of relocating its facilities at
the City's request, unless the facilities are to be
relocated for the benefit of a third party, in
which case the third party shall pay the costs of
relocation. In the event federal, state or other
funds are available in whole or in part for
utility relocating purposes, the City shall apply
for such funds and the Grantee will be reim-
bursed to theextent any such funds are actually
obtained.
SECTION 4.It shall be lawful for the
Grantee to make all needful or convenient
excavations and/or installations in any of the
present and future streets, alleys, highways
and other public places within the corporate
limits of the City for the purpose of erecting
and maintaining the posts, poles, towers, or
other supports for its wires or for the purpose
()flaying, maintaining and operating conduits,
vaults and wires and other conductors under-
• ground for the purpose aforesaid, or to repair
and improve such electric power and light
system and to extend the same; provided that
when the Grantee or any person or corporation
under the authority of this franchise, shall
disturb any of said streets, alleys, highways or
other public places for the purposes aforesaid,
he, it or they shall restore the same to good
order and condition as soon as practicable and
without unnecessary delay and failing to do so
after five days' notice from the City, or its duly
authorized officer or officers, then the City
may place said street, alley, highway or public
place in such condition at the cost and expense
of the Grantee, and said Grantee will forthwith
pay the full cost and expense thereof upon
demand of the City. All facilities constructed
under this ordinance shall be placed and main-
tained at such places and positions in or upon
such public ways and public places as shall not
interfere with the passage of traffic and shall
conform to all applicable laws, rules and regu-
lations.
SECTION 5.The City shall have the right
and privilege to string and maintain wires for
its internal communications for its fire, police,
airport and other services upon the poles and
other facilities erected and maintained by the
Grantee hereunder, subject to the Rules and
Regulations of the Idaho Public Utilities Com-
mission. The City shall string, maintain and
operate such wires at its own expense, risk and
responsibility, and in accordance with all legal
requirements and good engineering practices
and in such manner as not to impose any
additional expense upon Grantee of its said
poles and facilities. Any such wires of the City
shall be subject to interference by the Grantee
only when necessary in the maintenance, op-
eration orrepairof the Grantee's own fixtures,
wires, facilities and appurtenances. .
SECTION 6.The Grantee shall at all times
indemnify and hold the City, its officers, em-
ployees and agents, harmless from any and all
NEW BUSINESS? Don't wait for the next phone book, let
us tell your customers you're here! Call 634-2123 and
place your ad today.
I —milt MAY SECURITY I
i� t"•-.••-• mTIr n
•
I
expenses or liability arising from or by reason of
any negligent act or omission of the Grantee, its
representatives or employees, in the construc-
tion, operation or maintenance of any of the
Grantee's electric utility property or facilities.
SECTION 7. Upon acceptance of this fran-
chise by Grantee and before Grantee shall have
any rights hereunder, Grantee shall file with the
City Clerk a Certificate of Insurance evidencing
General Liability Insurance whichcovers claims
for Bodily injury, Property Damage and Per-
sonal injury. Such insurance shall have
minimum limits of $1,000,000 per occurrence.
The City of McCall shall be named as an "Ad-
ditional Named Insured" under Grantee's
insurance policy. Should the minimum limits
of insurance as set forth herein be increased
above $1,000,000, pursuant to the Idaho Tort
Claims Act (Idaho Code Section 6-901 et. seq.)
or any similar legislation, the Grantee shall be
required to provide the City with a new Certifi-
cate of Insurance evidencing the higher limits
upon the City's request.
SECTION 8. The electric service to be
furnished to the public hereunder, and all rates
and charges therefor, and all regulation of the
Grantee hereunder, shall at all times be subject
to all rules, regulations and orders that may be
lawfully prescribed by the Idaho Public Utili-
ties Commission or by any other governmental
authority now or hereafter having jurisdiction
over such matters. During the term of this
franchise, Grantee shall at all times assure that
customers within the City have access to cus-
tomer service from the Grantee as required by
. the Idaho Public Utilities Commission.
SECTION 9. As compensation for the right,
privilege and franchise hereby granted, Grantee
agrees to pay to the City on or before the 30th
day of January, April, July and October, an
amount equivalent to one percent (1%) of
Grantee's "gross revenues" for the preceding
calendar quarter. For purposes of this Section,
"gross revenues" shall mean the amount of
money billed by the Grantee for the electricity
it sells within the corporate limits of the City to
customers, less uncollectibles. The City shall
provide appropriate information to the Grantee
to allow the Grantee to identify which of its
customers are located within the corporate lim-
its of the City for purposes of paying franchise
fees. Grantee shall not be responsible for any
failure to pay franchise fees which results from
deficiencies in such information provided by
the City. in the event the City annexes a new
area into its corporate limits, the terms of this
Section 9 regarding franchise fees shall not
apply to the annexed area until sixty (60) days
after the City has supplied the Grantee with
appropriate information for the identification of
the Grantee's customers within the annexed
area.
The Grantee's fmnchise fee payment obli-
gations hereunder shall commence with the
start of the Grantee's first full billing cycle
following the effective date of this ordinance;
provided, that the Grantee must first receive
approval from the Idaho Public Utilities Com-
mission for the collection of the franchise fee in
the rates charged by Grantee.
SECTION 10. The City shall have the right
during the term of this franchise agreement to
increase the franchise fee hereunder up to three.
percent (3%), by obtaining approval of a major-
ity of voters of the City voting on the question
at an election held in accordance with chapter 4,
title 50, Idaho Code. Any such vote to increase
the franchise fee hereunder shall provide that
the increased franchise fee will apply to any
electric service provider (other than the City)
who utilizes the City's streets, alleys or other
public places to provide electrical service within
the City, during the term of this franchise agree-
ment.
SECTION 11.TheGrantee shall keep accu-
rate books of account for the collection of the
franchise fees hereunder and the City shall have
the right to inspect the same at all times during
business hours, and from time to time audit the
same for the purpose of determining gross rev-
enues under Section 9 above.
SECTION 12. The franchise fees paid by
the Grantee hereunder will be in lieu of and as
payment for any tax or fee imposed by the City
on the Grantee by virtue of its status as a public
utility including, but not limited to, taxes, fees
or charges related to easements, franchises,
rights -of -way, utility lines and equipment in-'
stallation, maintenance and removal during the
term of this franchise agreement.
SECTION 13. The Grantee shall have the
right and privilege, insofar as the City is able to
grant the saute, in accordance with National
Arborist Association standards, of the pruning
of all trees which overhang the present and
future streets, alleys, highways and other public
places within the corporate limits of the City, in
such a manner and to such extent as will prevent
the branches or limbs or other parts of such trees
from touching or interfering with its wires,
poles and other fixtures and equipment. How-
ever, except in anemergency, no pruning shall
be undertaken without giving the occupant of
the adjacent property written or oral notice that
such pruning will be perfomted.
SECTION 14. In consideration of Grantee's
APPROVED by the Mayor this 11 th day of
September, 1997.
William Killen, Mayor. ATTEST: C.N.
Woodbury, Acting City Clerk
ACCEPTANCE
IDAHO POWER COMPANY, as the fran-
chisee, accepts the franchise set forth in the
above Ordinance and agrees to abide by the
terms and conditions thereof.
D.H. Jackson, Vice President, Corporate
Affairs. I t 10/9
ELECTION NOTICES
These inform you of questions being
put to the electorate and who qualifies to
vote on the question.
MCCALL FIRE PROTECTION
DISTRICT ELECTION CANCELED
As there was only one candidate for Com-
missionerof the McCall Fire Protection District,
subdistrict number 1 and 2, the election to fill
these positions have been canceled.
Donald M. Clark was the only person to file
for the position of Commissioner for subdis-
trict one.
Marvin R. Heikkila was the only person to
file for the position of Commissioner of subdis-
trict two.
Cancellation of the election under such
circumstances is permitted under Section 34-
1407,Idaho Code.
The election was to have been held Novem-
ber 4, 1997. I t 10/9
- MEETING NOTICES
These notices inform you of special
meetings of governing bodies and the topics
to be discussed in case you wish to attend.
NOTICE OF PUBLIC INFORMATION
MEETING
CONCERNING Project No. NH-F-3271
(026), Key No. 0688
McCall Altemate Route
Notice is hereby given that the Idaho Trans-
portation Department (ITD) will hold a public
information ineeting at the Shore Lodge in
McCall, between 1 I a.m. and 7 p.m., Wednes-
day, October 15, 1997. The meeting will be
similar to an open house with the public invited
to attend any time during those hours.
The purpose of this meeting is to provide
information to the public about department
projects recently completed or currently under
construction in the McCall area. This meeting
will also include details about the department's
plans to proceed with the protective buying of
right-of-way for the proposed McCall Alter-
nate Route project. Protective buying is a process
used to keep the highway location options
open. The protective buying will be carried out
in accordance the Uniform Act and Title VI of
the Civil Rights Act of 1964. The proposed
protective buying will not bias the selection of
a preferred construction alternative.
Purchase of the property is expected to
begin by the end of 1997. The purpose of this
notice is to inform the public that ITD has
selected a preferred location and is proceeding
with design and right-of-way purchase. High-
way plans illustrating the proposed alignment
are available for inspection at the ITD District
3 office at 8150 Chinden Blvd. in Boise and at
City Hall in McCall. Construction of the project
, has not been scheduled.
The Idaho Transportation Department com-
plies with Title VI of the Civil Rights Act of
1964, which stales, "No person in the United
Slates shall, on the grounds of race, color, or
national origin, be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under any program or activity
receiving federal financial assistance." When
requested, ITD will arrange to reasonably
commodate, within the limitations of
facilities available, those disabled persons
want to attend this public information race
including those with impaired vision or I
ing. Please direct requests to Jul ie Pipal, P
Involvetnent Coordinator, at (208) 334-4
2t10/9
PUBLIC NOTICE
NOTICE iS HEREBY GIVEN tha
McCall Memorial Hospital District will
an open community meeting on Thun
October 16, 1997 from 7:00 - 9:00 p.m.
Payette Lakes Middle School multi put
room. Residents from the hospital service
including Riggins, New Meadows, Mc
Donnelly, Council and Cascade are invit
attend. The purpose of the meeting is to
public comment from community men
regarding a two year hospital Action
3t10/16
FINANCIAL NOTICE
These notices inform you ofjnancial Inc
in which you may have an interest.
NOTICE TO CREDITORS
PROBATE N. SP-97-208C
ESTATE OF ROY L. HARNDEN
DECEASED
Notice is hereby given that the undersi
has been appointed Personal Representati
the above -named estate. All persons ht
claims against the said deceased or his c
are required to present their claims withir
months after the date of first publications c
notice, or said claims will be forever b:
Claims must either be presented to the Pcr
Representative of the Estate at the law off
Louie Gorrono, 105 N. Hayes, P.O.. Box
Emmett, Idaho, or filed with the Clerk c
Magistrate's Court, Valley County, Idah
Dated September 9, 1997.
Elana M. Harnden
Personal Representative
L. Gorrono, Attorney at Law, P.O.
637. 105 N. Hayes, Emmett, ID 83617 3
MISC.
STATEMENT OF NONDISCRIME
TION
Midvale Telephone Exchange, Inc.
recipient of federal financial assistance
the Rural Utilities Services, an agency c
U.S. Department of Agriculture, and is sc
to the provisions of Title VI of the Civil R
Act of 1964, as amended, section 504 c
Rehabilitation Act of 1973, as amender
Age Discrimination Act of 1975, as ame
and the rules and regulations of the U.S
partment of Agriculture which provide It
person in'the United States on the basis of
color, national origin, age, or handicap sh
excluded from participation in, admissi
access to, denied the benefits of, or othc
be subjected to d iscrimination under any c
organization's programs or activities.
The person responsible for coordir
this organization's nondiscrimination co
ante efforts is Lane R. Williams, preside]
general manager. Any individual, or sp
class of individuals, who feels that this of
zation has subjected them to discrimit
may obtain further information about tin
uses and regulations listed above from a
file a written complaint with this nrganiz
or the Secretary, U.S. Department of Ag
turc, Washington, D.C. 20259; o
Adtninistratnr, Rural Utilities Services,
ington, D.C. 20250. Complaints tnust be
within 180 days after the alleged discri
tion. Confidentiality will be maintained
extent possible. 1 t 10/9
REAL ESTATE REAL ESTATE
Lynn McDonald (208) 382-4348
PAYETTE LAKE -100 ft. frontage, 4 bdrm.,4 bath, on East side..65 acre. Great vie
mature Pines & woods, very private. $675,000 #491
JUST LISTED - Family sized log home on 2+/- acres. 6 bdrm., 3 bath, full si
basement, 3 cargarage. New carpet allowance. Barn, convenient wooded private
close to McCall. $269,000 80548
LOG HOME -On 10 beautiful acres, 3 bdrm., 2 bath, vaulted ceiling in living roo
Barn, garage & hot tub. $279;000 Reduced to $263,000, owner financing. #316
GREAT HOME - Convenient in -town location, 2,500 sq. ft., 4 bdrm., 3 bath, d
garage, enclosed hot tub, excellent condition. Great family home. Priced belt
market value. $129500 #539
RIVER EDGE CONDO - Lower unit, close to Shore Lodge & lake. Ideal weeke
retreat. Motivated to sell. $39,:09 Reduced to $35,000. #499 _ _ , -
PAYETTE RIVER VIEW -Privacy, wooded, great building site on this 15 acres ch
to McCall, Williams Creek runs through property. $90,000, owner will finance.
COHOESTATE - Creek view lots, wooded yet sunny, CC&Rs.2.29 acres at$33`
& 2.25 acres at $42500. OWC,15 % down, 10 % int. for 10 years. #962, #961
♦� . _ / A w AI AA
maintaining the posts, poles, towers, or omer
supports for its wires or for the purpose of provided, that the Grantee must first receive
' laying, maintaining and operating conduits, approval from the Idaho Public Utilities Com-
vaults and wires and other conductors under- mission for the collection of the franchise fee in
ground for the purpose 'aforesaid, or to repair. the rates charged by Grantee. •
and improve such electric power and light SECTION 10. The City shall have the right
system and to extend the same; provided that during the term of this franchise agreement to
when the Grantee or any person or corporation increase the franchise fee hereunder up to three
under the authority of this franchise, shall dis- percent (3%), by obtaining approval of a ma-
turb any of said streets, alleys, highways or . jority of voters of the City voting on the ques-
other public places for the purposes aforesaid, tion at an election held in accordance with
he, it or they shall restore the same to good chapter 4, title 50, Idaho Code. Any such vote
order and condition as soon as practicable and to increase the franchise fee hereunder shall
without unnecessary delay and failing to do so provide that the increased franchise fee will
after five days.' notice from the City, or its duly apply to any electric service provider (other
authorized officer or officers, then the City than the City) who utilizes the City's streets,
may place said street, alley, highway or public alleys or other public places to provide electri-
place in such condition at the cost adn expense . cal service within the City, during the term of
of the Grantee, and said Grantee, and •said this franchise agreement.
Grantee will forthwith pay the full cost and . SECTION 1 I. The Grantee shall keep ac-
expense thereof upon demand of the City. All curate books of account for the collection of the
facilities constructed under this ordinance shall franchise fees hereunder and the City shall
for the preservation of the public peace, health
and safety, and therefore this ordinance shall
take effect on
PASSED AND ADOPTED by the Council
of the City of McCall this day of ,
19 _.
APPROVED by the Mayor this _ day
of , 19 _.
ATTEST: Mayor
City Clerk
• , (Seal)
ACCEPTANCE
IDAHO POWER COMPANY, as the fran-
chisee, accepts the franchise set forth in the
above Ordinance and agrees to abide by the
terms and conditions thereof.
DATED this _ day of , 19 .
By: D.H. Jackson, Vice
President - Retail Services .
ATTEST: Secretary
(Seal)
EXHIBIT D
DAHO
ipier
�PCNIER
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
October 10, 1997
To the Honorable Mayor and City Council
McCall, Idaho
Ladies and Gentlemen:
DOUGLAS H. JACKSON
Vice President —Retail Services
Idaho Power Company, for itself, its successors and assigns, hereby accepts the
franchise contained in the ordinance passed by your Honorable Body on the l lth day of September,
1997, entitled:
ORDINANCE NO.713
AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-
328, 50-329 AND 50-329A GRANTING A FRANCHISE TO
IDAHO POWER COMPANY, A CORPORATION, AND TO ITS
SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN
AND OPERATE IN AND UPON THE PRESENT AND FUTURE
STREETS, HIGHWAYS AND OTHER PUBLIC PLACES WITHIN
THE CORPORATE LIMITS OF THE CITY OF McCall, IDAHO,
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR
SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE
CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A
TERM OF 20 YEARS, INCLUDING THE NONEXCLUSIVE
RIGHT TO PHYSICALLY LOCATE AND MAINTAIN
TELEPHONE, CABLE, FIBER OPTICS OR OTHER
COMMUNICATIONS FACILITIES; SETTING FORTH AN
AGREEMENT NOT TO COMPETE, RESERVING POWER OF
EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF
FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS,
TERMS AND CONDITIONS GOVERNING THE EXERCISE OF
SAID FRANCHISE.
Telephone (208) 388-2281, Fax (208) 388-6903
and files this, its written acceptance of same.
Respectfully,
IDAHO POWER COMPANY
B 2
Y
D. ackson
Vice President - Retail Services
(CORPORATE SEAL)
ATT
B ►�� ,J�.
Y
Robert W. Stahman
Secretary
The above acceptance was received in duplicate, and is ne original the eof as duly
filed in my office as Recorder of the City of McCall, Idaho, this .11 "day of� ,
1997.
(OFFICIAL SEAL)_
DHJ:mmb
_ U0 CZJu
der of McCall, Id
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I D A H O P O W E R C O M P A N Y
P . O . B O X 7 0
B O I S E , I D A H O 8 3 7 0 7
P A T R I C K A . H A R R I N G T O N
A t t o r n e y
O c t o b e r 1 3 , 1 9 9 7
V i a U P S
C h e r r y W o o d b u r y
A c t i n g C i t y C l e r k
C i t y o f M c C a l l
2 1 6 E . P a r k S t r e e t
M c C a l l , I D 8 3 6 3 8
R e : M e m o r a n d u m o f U n d e r s t a n d i n g
D e a r M s . W o o d b u r y :
E n c l o s e d i s o n e o r i g i n a l o f t h e M e m o r a n d u m o f U n d e r s t a n d i n g e x e c u t e d b y t h e C i t y
o f M c C a l l a n d I d a h o P o w e r C o m p a n y r e g a r d i n g t h e i n s t a l l a t i o n o f u n d e r g r o u n d p o w e r l i n e s w i t h i n
t h e C i t y ' s r i g h t s - o f - w a y . T h e M e m o r a n d u m o f U n d e r s t a n d i n g i s i n a d d i t i o n t o t h e M c C a l l f r a n c h i s e
d o c u m e n t s t h a t w e r e o v e r n i g h t m a i l e d l a s t F r i d a y , O c t o b e r 1 0 t h
P l e a s e f e e l f r e e t o c a l l m e i f t h e r e a r e a n y q u e s t i o n s o n t h e M e m o r a n d u m o f
i U n d e r s t a n d i n g .
S i n c e r e l y ,
P A H : m m b
E n c .
c : K e l l y E d w a r d s
T e l e p h o n e ( 2 0 8 ) 3 8 8 - 2 8 7 8 , F a x ( 2 0 8 ) 3 8 8 - 6 9 3 6
CITY OF MCCALL
September 26, 2008
Layne Dodson
Idaho Power Company
PO Box 70
Boise, ID 83707
Re: Increase Franchise Fees for the City of McCall
Dear Mr. Dodson:
The City of McCall would like to initiate discussions regarding the franchise agreement to
increase the fee from 1% to 3%. The purpose of increasing the franchise fees is to generate more
revenue to underground utilities in the City and make our community more attractive. The City
recognizes that the process will include a public hearing, and the City will be responsible for
answering citizens' questions and comments about the increase in fees.
Please let me know the next steps to modify the current franchise agreement. We look forward
to working with you on this effort.
Sincerely,
CITY OF McCALL
ert Kuleza
Mayor
216 East Park Street . McCall, Idaho 83638 . (208) 634-7142 . Fax (208) 634-3038