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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.