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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