HomeMy Public PortalAboutMcCall News ReleaseFor 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
McCal1,1D 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
For Immediate Release
�-•_ more ,
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.