HomeMy Public PortalAboutAB 08-233 Idaho Power Franchise FeesMcCALL CITY COUNCIL
AGENDA BILL
Number
Meeting Date
216 East Park Street
McCall, ID 83638
AB 08-233
December 4, 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 to increase fees was submitted to Idaho Power in September, and staff met with Idaho
Power to begin the process of increasing the franchise fee to 3%. The franchise Ordinance was formally
introduced to Council during the October 23 meeting and was published in the Star News on October 30.
To date, no public comment has been received, so staff is recommending only the first reading of the
Ordinance, rather than adoption at this time.
A draft of the Ordinance to increase franchise fees is attached.
RECOMMENDED ACTION:
Read Ordinance by title
only, first reading only.
RECORD OF COUNCIL ACTION
Meeting Date
ACTION
September 25, 2008
Mayor signed letter of interest to Idaho Power to increase franchise fees
October 23, 2008
Ordinance was formally introduced at a City Council meeting
October 30, 2008
Ordinance was published in the Star News