HomeMy Public PortalAboutIdaho Pwr Franchise w/McCall...POWER
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
fmalized 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
N
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
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i
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
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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 NjCCAT,j,
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 i. 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 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 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 on*the 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. 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 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. 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 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
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
2
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 throe
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 Vity 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 awed, 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 aay be listed as a separate item on the
customer's utility bill.
SECTION 14. 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 canner 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 aay 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 aay
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 overnang the streets or public places
in such a canner 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 aay be necessary to prevent such interference ad 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 aaintain 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, health' and safety, and
therefore this ordinance shall take effect on January 1, 1995.
5
IDAHO POWER COMPANY
I.P.U.C.'NO. 25. TARIFF NO. 101
a
VIII. REFUNDS (Continued)
C.
SCHEDULE NO. 71
OVERHEAD AND UNDERGROUND
DISTRIBUTION LINE EXTENSIONS
(cont)
T"TRD REVISE") l
CANCELS
SECOND REVISED SHEET NO. 27E
IDAHO PUBLIC UTILITIES COMM!SSION
APPROVED EFFECTIVE
JUN 14 '91 JUL 1- '91
\.44,. a-N•
SECRETARY
4. If the Extension Allowance of an Additional Applicant covers all
applicable payments and still has a remaining balance, that surplus
ders on a
Load
will be refunded among Vested is exhaustedrortallolVested Interests ared fully
basis until the surplus
refunded.
5. Vested Interest refund payments may be waived by notifying the Company
in writing.
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 unerthis pmf,thisLocal
tariffImprovement
District will be provided service under thegeneralt rs
Tieztompeny.will>provide a cost estimate_ and feasibilitystudy for. a.Local
Improvement.Dittrict" .within 120 days after; receiving theresolution from -'the
re uesting overning 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 six months of the submission of the estimate for reasons not within the
control of the Company. The :'governing �=body=r; ssuing -the resolution, kliliti .rfthe
Company for : the costs_ .pr,eparing the cost =, estimate valid. f..e sibi ity. irdy,
regardless of whether th.,;>ofe Line -Extension:,or ..the Conversion:actuali,y t kes laacet
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. If the` -actual cost is less than the estimated=,cost y..the A.ocal
Improvement District will, pay, the . actual cost: If -:the ,actual accost .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
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.
1AH0 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 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. Oroftno
Tad Freeman House
Mayor, Cascade
Bart 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
Grant Kingsford
Mayor. Meridian
Harold Sims
Mayor, Bonners Ferry
John O. Cotant. Jr.
Mayor. Chubhuck
Tim Ridinger
Mayor. Shoshone
Printed on Recycled Paper
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
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.
a Printed on Recycled Paper V
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
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. A11 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
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
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 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
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. Vl
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 1�
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 Via President
Winston Goering
Mayor, Nampa
Second Vice President
Kirk Hansen
Mayor, Soda Springs
Third Via 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. Orofino
Tad Freeman House
Manor. Cascade
Ban Westberg
Councilmember. Weiser
Max Yerrington
Councilmember. Meridian
Ted Ellis
Mayor. Garden City
Chuck Geska
Councilmember, Buhl
David Adair
May or. Gooding
Gregory Anderson
Councilmember. Pocatello
J. Waker Ross
Macor. Preston
John Walker
Mayor. Challis
James Flamm
Councilmember. Rexburg
ACTIVE PAST PRESIDENTS
Dixie Reid •
Councilmember. Coeur d'Alene
Grant Kingsford
Mayor. Meridian
Harold Sims
May or. Bonners Ferry
John O. Cotant. Jr.
May or, Chubbuck
Tim Ridinger
Macor. Shoshone
Printed on Recycled Paper
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.
haportant 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
E11RNESTTTE FARR
WIRATIDAHO 13651
Bulk Rate
U. S. POSTAGE
PAID
Permit No. 11
NAMPA, IDAHO
No
Postage Stamp
Necessary
If Mailed fa the
United States
BUSINESS REPLY CARD
First Class Permit No. 21 Nampa, Idaho
SEVERN, RIPLEY, DOORN & HANSON
Certified Public Accountants
P.O. Box 446
Nampa, Idaho 83651
IDAHO POWER COMPANY
Nampa, Idaho
Dear Idaho Power Company Customer:
Idaho Power Company is sponsoring a survey of its customers in
the City of Nampa 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. Vote
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 I.
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.
3. 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. Nampa 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 importial survey, we have employed the Nampa
certified public accounting firm of Severn, Ripley, Doorn & Hanson to
conduct it and tabulote the results. Thonk you.
Very truly yours,
George L. Elliott
Nampa District Manager
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
75¢ 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
ELECTRICAL FRANCHISE FEES
VS
PROPERTY TAXES
1. WHO PA YS 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.
2. ABILITY TO PA Y FEES
A charge added to consumption of a product with the
ability to apply conservation practices to reduce the
~mount of fees.
$. EASE OF ADMIN1STRA TION
Pay monthly with utilit~ 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.
I. WHO PA YS TAXF_.S?
Only propen'y owners, those living in the city
and using city services as well as absentee
property owners who do not use city services,
pay property rexes. There are a multitude of
governmental entities and charitable organiza-
tions who are exempt from paying any property
rexes who benefit from city services. These
entities and organizations would be required to
pay a franchise fee as pan of their electrical
bill.
2. ABILITY TO PA Y 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.
Association of Idaho Cities
3314 Grace Street, Boise, Idaho 83703
Telephone (208) 344-8594
PRESS RELEASE
FOR I~RELEASE
October.~,199~)
Electrical'lr'r~anchise Fees vs Property Tax
Contact: Scott McDonald
344-8594
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 -
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"Alene 5%
Worley 3%
Orofmo 3%
Post Falls .25%
Utah Power % Light
Paris
Bloomington
DuBois
Rigby
Rexburg
Iona
Rifle
3%
10%
10%
3%
6% (up from 2% as of 10/1/94)
3%
3%
Idaho Power Information Sheet
Utility Franchise Fees
Q: What is a franchise?
A: Municipal franchises authorize utilities or other
~rvice providers to ufil/ze a city's sun,ets and alleys for the
local/on of equipment and facilities. In Idaho Power's case,
this pertains to the electrical equipment _t~_c~'-~.~ry to provide
an essenti~ service. Franchise agreements may also restrict
the city's right to compete with a utility's service to dty
Franchises d~n'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 hw,
cities are not authorized to impose franch/se fees on elecwic
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 utillty'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 ~he city.
Q: Does Idaho Power oppose
franchise fees?
A: Under certah terms and conditions, Idaho Power
would not oppose franchise fees. Ch/el among them is a pr~
vision ti) allow customers a voice in the imposition of such
fees.
Q: How would customers' voices
be heard?
A: Idaho Power SUPlXn~ providing all city resi-
dents an opportunity to vote on franchise fees at a public
election. No fianchise fee should be imposed upon an
electric ut/lity's customers without majority approval.
Q: Specifically, what conditions
does Idaho Power believe are
necessary?
A: mbo Power would not oppose changes to~tate
law governing franchise fees ff 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 elecwic utility bill.
· The fees shall not exee-_d 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 aud approve all electric utility franchise agree-
merits 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 ~ 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.
Roo R o I N A N C E N O..7kq.
I.ANCE URANTING A NONEXCLUSIVE IqL~NClliS~ T(~ I~AH~ ~O~a UO~A~, A
' ~O~TION, ~D TO iTS SUCCESSO~S ~ ASSinN{, ~0 ~NSTRUCT, ~I~A~N AND
OPE~T~ IN AND UPO. TIlE PRESENT ~U ~TURE ST[EE~{j ~iCH~AYS A.D OTII~R PUBLIC
P~CES ~ITIIIN THE EO~O~T[ LIHITS 0~.THE CI~ 0~ ~AY~TtE~ IOAHO~ ELECTRIC
~ILI~ pROPER~ ~O FACiLITiES ~R SUPPLYING ~L~ICit~ ~D ELECTRic SERVICE,
TO ~HE CITY, THE*IN.BIT.TS
DITION9 OOVE~INO THE EXE~ClS~ O~. ~AI~
~e It Otdaluid By the Hayer t~d Ceuneii'e[ the City of ~ayetta,
-
*' --~ .i~ g~etieu 3," $h~ ~fa~t~ Ihnil l~d~ntfy nn~ Inv~.t~ ~tty ~at~[es{ ~to~ any
her~in, ,-;.,.- ' :?..' ].-.:;~ :::'.~.~:,:, -
.......... f~ ~ee~he~.. : - , ~ ·
...............
.: .. . ...., = . .. ....... . . ~ ~ ....:~.. ,....-...- ...... ~..~...,. , . ..
. : .'/..- ... ~. :~' '.r ... ,._... ~ '. ~, ~;. ~':~,'~ ~]~,.:~ . .
....
_/R~ctton 10. The ~rentee ha~ constructed and nov {s eaintaininR opera~in~
........ electric utility Property &nd fac{li~iea in and upon the
streets, alleys~ avenues, h~hvays) boutevatds~ thotou~h~a,res and public
Places in the City under a [ranchise OrdinanCe Nd. }8~ i' ~hich ~ill expire on
~ul_x __~_~ 1980 , and both'the Gtan~e~ and the City desire to revoke
brdi~-~;g'-NO.._~.._..~[-i~fective aa of the end bi the day on August 9 ,
19~_, and.to have the new ~rahchise be in ~Orca and e[fect on ~ugu~t____ 6
19~_, It tS hereby Idl~dRed aid dee~ared.that thi~ Oidtnance is necessary
~or the i~ediate pteservatto~ 6~ the public pia~e~health and safety, and
frand~ise Ordinance No; }Sq i~ ~&9Oked a~-~[~x~_ptM, i..~~___ ~._,
1970 , and this ordinance ~dll iake effect and be. in full force and effect
upon .~u~-:--~-~ 19~O-' ~ '" " '
Passed by the City CoUnCil 6~ th&.City o~ Payette, Payette.~ounty,
Idaho, on ~he _~l:& day O~ ~uei ! ~L_~ 1970
~ITNESS: - .
~ ' ho