HomeMy Public PortalAboutAB 08-213 Idaho Power Franchise FeesMcCALL CITY COUNCIL
AGENDA BILL
Number
Meeting Date
216 East Park Street
McCall, ID 83638
AB 08-213
October 23, 2008
AGENDA ITEM INFORMATION
SUBJECT:
Idaho Power Company
Increase in Franchise Fees
Approvals: Department/
Committee/Individual
Initials
Remarks
(Originator/
Support)
Mayor /Council
City Manager
Community Development
support
Treasurer
Clerk, Deputy City Clerk
originator
Police Department
Public Works
Golf Operations
COST IMPACT: N/A
Parks & Recreation
FUNDING SOURCE: N/A
Airport
Library
TIMELINE: N/A
City Attorney
Grant Coordinator
SUMMARY STATEMENT:
Franchise fees allow local governments to collect fees on the sale of services from the utility providers. The
franchise fees are given to the City of McCall for undergrounding of utilities. For new projects,
undergrounding utilities are a requirement of McCall City Code; however, most of the utilities in the City are
still above ground.
The City currently has a 1 % Idaho Power franchise fee. In FY 2008, the City collected $60,208 from Idaho
Power franchise fees. The FY 2009 budget anticipates receiving $55,100 in franchise fee revenues, based on
the current 1% rate. Increasing the franchise fees to 3% would increase that revenue amount to $165,300.
A letter of interest was submitted to Idaho Power in September, and staff has met with Idaho Power to begin
the process of increasing the franchise fee to 3%.
The procedure for adopting utility franchise fees includes the following steps:
1. The franchise ordinance is formally introduced at a City Council meeting.
2. The franchise ordinance is published in at least one issue of the official newspaper of the City.
3. The franchise ordinance is adopted by the City, at least 30 days after the ordinance was introduced.
4. The franchise ordinance is published again within one month after it is adopted.
Attached is a draft of the Ordinance that would increase the franchise fees to 3%.
RECOMMENDED ACTION:
None. The process of increasing franchise fees requires a formal introduction of the Ordinance to City
Council 30 days prior to adopting the Ordinance.
RECORD OF COUNCIL ACTION
Meeting Date
ACTION
September 25, 2008
Mayor signed letter of interest to Idaho Power to increase franchise fees