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HomeMy Public PortalAboutIdaho Power Ordinance 713 Franchise Agreement~~ ~ ~ ~~ ~ ~ ~ ~~ ~~ ~ ~ ~ ~ `~ . 0 o~ x ~Q a _ ~ H r - F . i~ ~_ .- _~. _" __ ~ : O ___. _ /: ~ ~ ~ ~ .... y _ ,._ ~1 ~. `~ _ ~ -- ~. = _ . _ ~ .. _ _. ..._ y1, _ u ~ .- Id ~ -.. ..~ ~. t~..~ ~ ~. V~ `si~ r_ _ ~ ~ ~ -. _ '1 , _. ._ . _. ...~. ~ .S. _ . .. _ _v r - r r. _.n. ~ ~ _ „ ,- f .~ ,. __ -..._. ~. ... V. 1. ._ . .... _.r. -_ _ . . ~ v y = ~ _ - r ,~ 01 ,-~i 'i: ~ - ~._. ~ ..._~ ~ - ._ _ ~~ w~ _~~ ~ O .._ ._ a~--- ~ U , ~ ~ ~' ~ 0 .r _, -f Ul ._ Q~ ~ _. l 0 ~ k _ ~~ •~ ~ _m~ N ti • ~. V~ f . j ~• f li _ ~+~ T - . _d. '- (d f' L++ -.._. .. _ ~y. - .~, ~. _- .-~ .. 01 •-A - __ ~--~ a~ I + __ ~ _. • ~ rei "_ ~- . f, r `~` , .. F ` ~/I41 . y ~ ,~ ~' - ~. U tad ~.: ~ ._ ~~ c! r Q r _ . ~~ ... I^~y' ~ V` it J .w ~, r /. '~ f. ... F _. "_ .__. ~' r ,. ' ~ _ Ra__ := - ~ __ ~- ._ O1 _ v1 '~~ l _~ ~ 1~J1/+ ~/ ' I. r ,__. L!1 ~. -_ v ~ i f' _, ~ _ _ ~}~ _ '" i~,~ ~ r _ ~ - F y ~ryr ~1 ^ #~ .., f. _- O - ._ r_ . ~ ~ ( ~ ~ J ; ~ - ~ ~' ~ ~ 01 ~ .~- ~ , RECEIVED MCCALL, CITY OF .~U~ ~ ~ ZQQ~ 216 E PARK ST MCCALL, ID 83638-3832 June 11, 2009 Dear Valued Suppliers and Contractors: Thank you for supplying products and services to Idaho Power Company (Idaho Power). You are critical to the success of our business. The high quality products and services you provide enable Idaho Power to provide low cost, reliable electric service to our customers while enhancing the opportunity to grow your business. In order to continue this beneficial business relationship, it is necessary that we have business objectives aligned on values of ethical conduct and compliance with laws and regulations. To provide a foundation for this business objective, Idaho Power has developed a Code of Business Conduct and Ethics (Code) which is posted on our website at www.idacorpinc.com. We ask that your employees who deal with Idaho Power read the Code and that you and/or they notify us if any of you become aware of any instances of noncompliance with the Code. You may make reports anonymously, if you wish. Please be assured that your good faith reports about actual or suspected violations of the Code will not in any way adversely affect your business relationship with Idaho Power. You may make reports to Mike Madarieta, our Manager of Corporate Compliance, at 208-388-2572 or to the IDACORP EthicsLine at 1-800-500-0333. Sincerely, -~s~e w-- Darrel Anderson Sr VP of Administration & CFO ORDINANCE N0.713 "AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328, 50-329 AND 50-329A GRANTING A 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 McCALL, IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE." BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF McCALL, IDAHO THAT; SECTION 1. 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, (subject to the rights of the City set th ' S tion 14 hereof), privilege and franchise for a period of twenty (20) years from and after -~'~, however, with the right to amend by mutual agreement in accordance with ction 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, including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics or other communications facilities of the Grantee or other parties, (provided, that Grantee shall comply with the City's requirements for cable system franchises) all 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, subject to Section 9 hereof. All such electric utility property and facilities now maintained by the Grantee within the streets, alleys, highways and other public places within the corporate limits of the City shall be deemed covered by this ordinance as provided herein. SECTION 2. All of the Grantee's electric property and facilities in and upon the present and future streets, alleys, highways and public places within the corporate limits of the City 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 applicable state and federal regulations and all construction standards presently in effect by the Idaho Public Utilities Commission or adopted by that Commission during the term of this franchise agreement. SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as necessary within the present and future streets, alleys, highways and other public places owned by the City. The City shall have no responsibility for the costs of such relocations. The Grantee shall bear the cost of relocating its facilities at the City's request, unless the facilities are to be relocated for the benefit of a third party, in which case the third party shall pay the costs of relocation. In the event federal, state or other funds are available in whole or in part for utility relocating purposes, the City shall apply for such funds and the Grantee will be reimbursed to the extent any such funds are actually obtained. SECTION 4. It shall be lawful for the Grantee to make all needful or convenient excavations and/or installations in any of the present and future streets, alleys, highways and other public places within the corporate limits of the City for the purpose of erecting and maintaining the posts, poles, towers, 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; provided that when the Grantee or any person or corporation under the authority of this franchise, shall disturb any of said streets, alleys, highways or other public places for the purposes aforesaid, he, it or they 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, highway 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. SECTION 5. The City shall have the right and privilege to string and maintain wires for its internal communications for its fire, police, airport and other services upon the poles and other facilities erected and maintained by the Grantee hereunder, subject to the Rules and Regulations of the Idaho Public Utilities Commission. 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 times indemnify and hold the City, its officers, employees and agents, harmless from any and ali expenses 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. SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee shall have any rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidencing General Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal Injury. Such insurance shall have minimum limits of $1,000,000 per occurrence. The City of McCall shall be named as an "Additional Named Insured" under Grantee's insurance policy. Should the minimum limits of insurance as set forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any similar legislation, the Grantee shall be required to provide the City with a new Certificate of Insurance evidencing the higher limits upon the City's request. SECTION 8. The electric service to be furnished to the public hereunder, and all rates and charges therefor, and all regulation of the Grantee hereunder, shall at all times be subject to all rules, regulations and orders that may be lawfully prescribed by the Idaho Public Utilities Commission or by any other governmental authority now or hereafter having jurisdiction over such matters. During the term of this franchise, Grantee shall at all times assure that customers within the City have access to customer service from the Grantee as required by the Idaho Public Utilities Commission. SECTION 9. As compensation for the right, privilege and franchise hereby granted, Grantee agrees to pay to the City on or before the 30th day of January, April, July and October, an amount equivalent to one percent (1%) of Grantee's "gross revenues" for the preceding calendar quarter. For purposes of this Section, "gross revenues" shall mean the amount of money billed by the Grantee for the electricity it sells within the corporate limits of the City to customers, less uncollectibles. The City shall provide appropriate information to the Grantee to allow the Grantee to identify which of its customers are located within the corporate limits of the City for purposes of paying franchise fees. Grantee shall not be responsible for any failure to pay franchise fees which results from deficiencies in such information provided by the City. In the event the City annexes a new area into its corporate limits, the terms of this Section 9 regarding franchise fees shall not apply to the annexed area until sixty (60) days after the City has supplied the Grantee with appropriate information for the identification of the Grantee's customers within the annexed area. The Grantee's franchise fee payment obligations hereunder shall commence with the start of the Grantee's first full billing cycle following the effective date of this ordinance; provided, that the Grantee must first receive approval from the Idaho Public Utilities Commission for the collection of the franchise fee in the rates charged by Grantee. SECTION 10. The City shall have the right during the term of this franchise agreement to increase the franchise fee hereunder up to three percent (3%), by obtaining approval of a majority of voters of the City voting on the question at an election held in accordance with chapter 4, title 50, Idaho Code. Any such vote to increase the franchise fee hereunder shall provide that the increased franchise fee will apply to any electric service provider (other than the City) who utilizes the City's streets, alleys or other public places to provide electrical service within the City, during the term of this franchise agreement. SECTION 11. The Grantee shall keep accurate books of account for the collection of the franchise fees hereunder 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 gross revenues under Section 9 above. SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including, but not limited to, taxes, fees or charges related to easements, franchises, rights-of- way, utility lines and equipment installation, maintenance and removal during the term of this franchise agreement. 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 pruning of all trees which overhang the present and future streets, alleys, highways and other public places within the corporate limits of the City, 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. However, except in an emergency, no pruning shall be undertaken without giving the occupant of the adjacent property written or oral notice that such pruning will be performed. SECTION 14. In consideration of Grantee's undertaking hereunder as evidenced by its acceptance hereof, the City agrees not to engage in the business of providing electric service during the life of this franchise or any extension thereof in competition with the Grantee, its successors and assigns; but nothing herein contained shall be construed or deemed to prevent the City from exercising at any time any power of eminent domain granted to it under the laws of the State of Idaho. The City shall not grant a franchise to another electric service provider during the term of this franchise agreement unless the electric service provider has received approval to provide electrical service within the City from the Idaho Public Utilities Commission, and the City has imposed the same franchise fee on the electric service provider as paid by the Grantee. 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 Utilities 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. SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise and grantor any material portions thereof or the failure promptly to perform any of the provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or default; however, this provision shall not prevent the Grantee from submitting such question of violation or forfeiture to the appropriate forum (which may include the district court having jurisdiction or the Idaho Public Utilities Commission) for determination. SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification to the City. SECTION 18. The Grantee shall assume the cost of publication of this franchise as such publication is required by law. SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION 20. Inasmuch as the Grantee has constructed and now is maintaining and operating the electric utility property and facilities in and upon the streets, alleys, highways, and public places in the City, 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 SS A D ADOPTED by the Council of the City of McCall this ~ da of ~-- y _, 19 (' . APPROVED by the Mayor this ~ day of _, 19~. ATTEST: Mayor ~_ City Clerk (Seal) ACCEPTANCE IDAI-IO POWER COMPANY, as the franchisee, accepts the franchise set forth in the above Ordinance and agrees to abide by the terms and conditions thereof. DATED this ~ day of ~C`fD ~ Pte' , 19_ AT ST: V / Secretary ,F By: ~ D:" .Jackson Vice President -Corporate Affairs (Seal) CITY OF MCCALL May 31, 2002 Idaho Power Company Kelly Edwards Community Relations Representative P.O. Box 70 Boise, Idaho 83707 Dear Mr. Edwards: In reviewing the franchise agreement adopted by the McCall City Council on September 11, 1997, it was determined that the City must notify Idaho Power of any annexations in order for franchise fees to apply. I have attached copies of the annexations that have taken place since that time. It was not clear who should receive the information. I'm sending it to your attention in hopes that you can get it to the appropriate party. Please do not hesitate to contract me should you need any additional information. Thank you for your assistance. Sincerely, Cathleen A. Koch Finance Director/City Clerk Attachments 216 East Park Street • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038 For Details, Contact: Jim Henderson • Acting City Manger Phone (208) 6347142 City of McCall 216 East Park Street P.O. Box 986 McCall, ID 83638 Phone 208-634-7142 Fax 208-634-3038 city of mccall news release Details of Idaho Power, City of McCall Franchise Agreement T1-venty year Agreement permits Idaho Power to place utility facilities in City Street and Alley Rights- of-Way for a Fee. 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 Sheet 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 elechic 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 _ L-'G l f ~C 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 azeas 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. _ _ ,. ,, .,_ __. _ _ IDAHO POWER P.O. BOX 70 U • s • BAmc ~,.~ BOISE, IDAHO 83707 PLAZA BRANCH 101 SOUTH CAPITAL BLVD. BOISE, IDAHO 83702 92-372/1231 CHECK NO. 0000866873 DATE 07/27/99 AMOUNT $*******7592.22** PAY EXACTLY Seven Thousand Five Hundred Ninety-Two and 22/100 Dollars PAY TO THE ORDER OF MCCALL, CITY OF P O BOX 986 ATTN CITY CLERK 216 E PARK MCCALL u'00008668?3++' ~:i23i03729+: i533020i8905++' L V V1V1~A 1 V 1~L 1<1Glj V 11<GL PV1l lf.1Y1VVl\ i.] .,JV,tMI lit~L V ~Gl\ . T_ TRF.asuRER ID 83638 INVOICE P.O. NUMBER VOUCHER DESCRIPTION ~p~r GCR58418 830063000000 SECOND QUARTER 3% $7,592.22 FRANCHISE TAX ooo2oa TOTAL FOR CHECK 0000866873 $7,592.22 Ps a s s a PLEASE DETACH AND RETA/N BEFORE DEPOS/TING CHECK f_.~ ~ _ ~ ~~ IDAHO POWER COMPANY ~~ w ~, ~ PO. BOX 70 ~~ _~. ~ ~~ ~~~ BOISE, IDAHO 83707 .~ a Katrina M Basye Property Tax Representative (208)388-2328 July 13, 1999 Cherry Woodbury Acting City Clerk City of McCall 216 E Park Street McCall, ID 83638 Dear Ms. Woodbury: Under the provisions outlined in the franchise agreement, Ordinance No. 713, Idaho Power Company has computed and has enclosed its franchise payment for the second quarter 1999 in the amount of 57,592.22. If you have any questions, please call. .._ ~'_-~`~ ICMB:dp Enclosure ~'~~ IDAHO POWER COMPANY ~~ P.0. BOX 70 BOISE, IDAHO 83707 Katrina M Basye Property Tax Representative (208) 388-2328 April 7, 1999 Cherry Woodbury Acting City Clerk City of McCall 216 E Park Street McCall, ID 83638 Dear Ms. Woodbury: Under the provisions outlined in the franchise agreement, Ordinance No. 713, Idaho Power Company has computed and has enclosed its franchise payment for the first quarter 1999 in the amount of $10,222.49. If you have any questions, please call. Sincerelyty ,~_ w_- .__, -fir ---= . e- KMB:dp Enclosure O4!19/9b X0:18 '208 368 4911 IDAHO Po9R 8TH FL CITY QF McCA~L ~RANGHISE TAXES Check Date 17 ~k ~ Amount Payment 1-or 1/27!98 7722$9 2,545.38 4th Quarter 1997 4/23/98 788147 9,17$.77 1st Quarter 1998 7127198 803796 6,642.19 2nd Quarter 1998 10/14!98 816856 6,030.44 3rd Quarter '1998 '1/25!99 839827 6,862.20 4th Qr,arter 1998 4!14/99 $507$8 10,222.49 1s# Quarter 1999 coo, ail ~ !~~ ~UV2/UUL iC:1QTl1FRN11DA1MCCALL.XLS U4%1S%81~ lU:1S ~~tltS 3t~LS CNL1 --- 1Lt1l3U ran Oln fL ,. ...._._ wJuul~ u+!t i Tax 17epa[iment 122] VVost Nato Street pas~„~zo Boise, TZ! 83702 Facsirni~~ Trans~xuittal To dram Name Diana Peterson Department: Tax Date: April 19, 1999 No. of Pages Including Cover Sheei: 2 Phone Number: (2Q8) 3$8~24~8 Fax Number: (ZO$) 3$~-b9l,l Notes Attached are the franchise fee amounts paid for the City cf McCall. Tf you need further infgxmation, please let me know _ ~~ P O H BOX 70ER ' ~~R BOISE, IDAHO 83707 CHECK No. 0000850788 IIATE 04/1 PAY EXACTLY II.S. BANK PLAZA BRANCH 101 SOUTH CAPITAL BLVD. BOISE, IDAHO 83702 92-372/1231 4/99 ~O~ $******10222.49** Ten Thousand Two Hundred Twenty-Two and 49/100 Dollars PA1, MCCALL, CITY OF To THE P O BOX 9 8 6 ATTN CITY CLERK ORDER 216 E PARK °F MCCALL ID 83638 C;U~1C~iNA~1'UR~RF..(,2 UIRED FOR AMO UNTS $5t1,U10 AND OVER v.P. o ~ rxEasuRER ~~'00008 50 788~i' ~: i 2 3 i0 3 7 29~: i 5 3 30 20 1890 Sig' INVOICE P.O. NUMBER VOUCHER DESCRIPTION AMOUNT GCR58289 649323000000 ~~„" ~ '` $10,222.49 ooo~os TOTAL FOR CHECK 0000850788 $10,222.49 P18238 PLEASE DETACH AND RETAIN BEFORE DEPOSITING CHECK 3 ~~ ~ F: .t ;~~t •.':4r'~ IDAHO POWER COMPANY P0. BOX 70 BOISE, IDAHO 83707 Katrina M Basye Property Tax Representative (208)388-2328 April 21, 1998 Cherry V~'oodbury Acting City Clerk City of McCall 216 E Park Street McCall, ID 83638 Dear Ms. Woodbury: Under the provisions outlined in the franchise agreement, Ordinance No. 713, Idaho Power Company has computed and has enclosed its franchise payment for the first quarter 1998 in the amount of 59,178.77. If you have any questions, please call. Sincerely, - KMB:dp Enclosure l~gS~ ~~- ti~2~ ~ ~~ ~ ~ ~~'~!„~ IDAHO POWER COMPANY V,g, gANK 0 SOUS CAPITAL BLVD. ..~,, P.O. BOX 70 BOISE, IDAHO 83702 ~R BOISE, IDAHO 83707 92-372/1231 426 U.S. BANK OF IDAHO CHECK NO. 14 »DATE 04!23/98 ®~ $*******9178.77** PAY EXACTLY ,e 9 ACCOUNTS PAYABLE aauNC-ri-----~ia,t~~s~,„s~rt-H-s~-~z-;,:w~ ~++a.unw~a~rtrpq?xrE!~cvu-~~rs~-~s, PAY MCCALL, CITY OF TO THE p O BOX 986 ORDER ATTN CITY CLERK CO-SIGNATURE~RpEQUIRED FOR AMO/U/NTS $50,000 AND OVER °F 216 E PARK Q TG ~~ ~'S .t~_ MCCALL ID 83638 v..,Z`~b~TR A ER 11'0000 ?88 L 4 711' ~: X 2 3 l0 3? 29~: 4 2 6 7808 8 L 611' r ~ ~. GCR57849 457881000000 $9,178.77 TOTAL FOR CHECK 0000788147 $9, 178.77 PLEASE DETACH AND RETAIN BEFORE DEPOSITING CHECK ~'~~ IDAHO POWER COMPANY ~_~~~ P.O. BOX 70 BOISE, IDAHO 83707 KELLY R. EDWARDS Community Relations Representative October 10, 1997 Via UPS Cherry Woodbury Acting City Clerk City of McCall 216 E. Park Street McCall, ID 83638 Re: McCall Franchise Agreement with Idaho Power Ordinance No. 713 Dear Ms. Woodbury: Enclosed is one executed original of the McCall franchise' agreement signed and attested by Idaho Power. We have kept the other executed original of the agreement for the Company's files. Also enclosed are two originals of Idaho Power's formal acceptance letter. Please execute both originals of this letter and return one to me. Additionally, I have enclosed a franchise Certificate for execution by the City to verify that the various requirements for the franchise have been met. The Certificate includes the following exhibits: Exhibit A -City Council Meeting Minutes. Please attach the minutes from the first City Council meeting, where the franchise ordinance (Ordinance No. 713) was introduced, and from the second City Council meeting, where the ordinance was adopted. Exhibit B -Ordinance No. 713. A copy of this Ordinance will be attached to the Certificate as Exhibit B. Exhibit C -Newspaper Notices. Under Idaho law for franchise ordinances, the City is to publish the ordinance twice; once before the franchise ordinance is adopted and once within thirty days after the ordinance is adopted. Please supply copies of the ordinance publications as Exhibit C. Telephone (208) 642-6553, Fax (208) 634-2118 Exhibit D -Idaho Power Acceptance Letter. A copy of the enclosed acceptance letter will be attached as Exhibit D after you have executed the City's portion of the acceptance letter. Please fill in the blanks on the Certificate form and attach the exhibits as discussed above and execute the Certificate as the City Clerk representing the city. The Certificate can then be returned to me with the executed acceptance letter referenced above. I will be submitting Idaho Power's insurance certificate which is required under Section 7 of the franchise agreement. Thank you once again for your assistance with the Idaho Power -McCall franchise agreement. Please feel free to call me at 642-6553 if you have any questions. Sincerely, l~/ Kelly Edwards KE:mmb -2- CERTIFICATE STATE OF IDAHO ) ss. COUNTY OF VALLEY ) I, the undersigned, the duly qualified and acting City Clerk of the City of McCall, Idaho, hereby certify that: 1. Attached hereto as Exhibit A is a full, true and correct copy of portions of the minutes of the regular meetings of the City Council of McCall, Idaho, duly held in said City on the dates of ,respectively, at which meetings all of the ouncil embers recited in the utes as present were present during the entire meetings; that such portions of the minutes contain all parts of the minutes which relate to the regularity of the meetings or to any and all proceedings had with reference to the passage of Ordinance No. 713 granting a franchise to Idaho Power Company, its successors and assigns. 2. At each of the meetings aforesaid the ordinance was read, and said ordinance was duly passed and adopted. 3. Attached hereto as Exhibit B is a full, true and correct copy of Ordinance No. 1251 as adopted by the City and as appears on record and on file in my office. 4. Said ordinance has never been altered, amended or repealed and is now in full force and effect. 5. At the time of the adoption of said ordinance, there were no rules or regulations of the City Council requiring ordinances or franchises to be passed or adopted in any manner or form different from that followed. 6. I am the legal keeper and custodian of the original records from which the attached copies purport to be made, and that I have compared said copies with the original records, and have found them to be true copies thereof. 7. Both prior to the passage of said ordinance, and within 30 days after the passage of the ordinance, I caused the ordinance to be published in s'r~ C~~,~. ,which is a newspaper having a general circulation in said City of McCall. Attached hereto as Exhibit C are copies of the proof of publication forms for the ordinance. 8. At the time of the passage of the above ordinance, the said City of McCall was a City incorporated under and governed by the general laws of the State of Idaho, and the Mayor of said City and Council Members of said City were as follows: ~. n ~L ,II~NN WITNES WHEREOF, I hereunto set my hand and affixed the said seal of said City this ay of ~~ . , 1997. (SEAL) ~ ~ Ci lerk y. vu v~wucr rte, ryyi, vemg wiuun uur[y (3V1 aays ar<er me passage or sala ordinance, the Grantee, Idaho Power Company, duly mailed to me, as City Clerk of said City, its written acceptance of the franchise granted by said ordinance. EXHIBIT A City of McCail MINUTES Regular Meeting of 4he McCail City Council -Thursday, September 17,1997 Table of Contents CALL TO ORDER AND ROLL CALL ........................»..................................».............».........................»...........2 PUBLIC COMMENT.......» .................»».....».............»....»..»».».............»....»........»»......».».»..................».».........2 CONSENT AGENDA ...........................................................................».....................»............».......................»....... 3 UNFINLSHED BUSINESS ..........»...»....» .........................»...».»................................................................................ 3 PROPOSED ORDINANCE NO.713 ' GRANTING A FRANCHISE TO IDAHO POWER CO., -THIRD READING .............. 3 SEWER PLANT AGREF_IvIENf ........................................................................................................................................ 4 CAR1C0 SUBDIVISION-LID 4 .................................................................................................................................... 4 NEW BUSINESS ..............................................».....................»..................................................»..........................»....4 PROPOSED CHANGES TO DEIlVHARD-BOYDSTUN CONNECTOR ROUTE ..................................................................... 4 SOUTH Loop WATERLINE ........................................................................................................................................... 4 J DITCH ON FARM IRRIGATION PROGRESS PAYMENT #5 IN THE AMOUNT OF $98,701.04 AND 7 DITCH PIPELINE PROGRESS PAYMENT #5 IN THE AMOUNT OF $141,076.31 ......................................................................................... 5 ADJUSTMENT OF UTIIITYACCOUNT-ROBERT RINFRO ......................................................................................... S AD HOC COMMITTEE ON WATER RATES .................................................................................................................... 5 WATER RATES FOR MIXED COMMERCIAL AND RESIDENTIAL PREMISES .................................................................. 5 OPEN ISSUES ON SPRING MOUNTAIN RANCH DEVELOPMEN'I' .................................................................................. 6 STAFF REPORTS ...............................................................................................».........».......................»...........»...... 6 ACTING CITY MANAGER ............................................................................................................................................. 6 CITY ATTORNEY .......................................................................................................................................................... 6 CITY ETIGMEER ............................................................................................................................................................ 6 PUBLIC WORKS DIRECTOR .......................................................................................................................................... 6 r; MAYOR APYD COUNCQ. COMMENTS AND REPORTS ............................................... ........»......................» 7 ....................... 7 MS. COLTON .............................................................................................................................. ........... ....... MS. ARP ..................................................................................................................................... ........ ...................7 . . ~ MR. KILLEN .............. ................................................................................................................ ............... CORRESPONDENCE AND INFORMATION TI'EMS .................................„................. ...........................».»...7 .......»»... 8 AD.JOURNMEN.I ..............................................................................„........»............................. ..............»..». MINUTES Regular Meeting of the McCall City Council-Thursday, September 11, 1997 The meeting was called to order by Mayor Killen at 7:00 P.M. Ms. Arp and Messrs, Colton, and Killen answered the roll call. Mr. Eckhardt and Mr. Martens was absent. A quorum was present. Members of the staff present were: (1) Acting City Manager Jim Henderson, (2) City Attorney Ted Burton; and (3) Staff Planner Andy Locke. The mayor opened the meeting to comment from the public respecting items not related to the public hearings. The following were heard: Mr. Locke reported that a public hearing had been set for October 9, 1997 for an appeal to the decision of the City Planning and Zoning Commission for a Conditional Use Permit for Heartland Home an assisting living facility. He further reported that Miles Rademan would meet with the planning commissions and staff at 10:00 AM. September 15, 1997. Helen Eimers asked the status of Council Member Eckhardt. Mayor Killen reported that Mr. Eckhardt had not resigned even though we asked him to do so and that the council had no authority to remove him from office. Ms. Eimers then asked if he was still receiving his salary. Mayor Killen again stated under the present city ordinances, the council had no authority to do so. The council by consensus directed the Ciry Attorney to prepare and amendatory ordinance providing for such circumstances. Kirk Eimers spoke on behalf of a group of citizens requesting that the city hire a water analyst to respond to questions and complaints respecting water bills. He further recommended that the council rethink the rate structure and provide for a higher fixed rate with a lower consumption rate. Mr. Eimers further pointed out that in the opinion of Dr. Dale Ralston there was good groundwater potential contrary to the reports the city had seen. 2 Donnella Boreham appeared and complained that she had just been informed that a new meter had just installed when she had the impression that the meter had been exchanged and tested several weeks_ago. Mr. Henderson tated that he had misunderstood a report; from the water superintendent. She further stated that_the statement that,summer,usage in excess of 50,000 gallons could not be correct in as much as there was no meter installed. She further stated that meters were not read every month. Mr. Henderson pointed out that meters are, in fact, read every month. Alana Shoemaker stated that the city should pursue a level pay option so that people would know how much to set aside. She was also concerned about what happens to people who can't afford to pay. The following items were on the consent agenda: • Minutes Of August 28, 1997 -Regular Meeting • Vendor Invoice Approval List Report Dated Sept 5, 1997 • Payroll Report Dated August 26, 1997 • Contract Approval Request Made By Bob Peckham, Recreation Director- Bethel Park Church For Gymnastics Program Ms. Arp requested that the Contract with Bethel Park be removed from the consent agenda. Ms. Arp then moved to approve the contract with Bethel Park Church conditioned on the increased rent being covered by increased user fees. Mr. Killen seconded and the motion carried unanimously. Ms. Arp moved to approve the Consent Agenda. Mr. Killen seconded and the motion carried unanimously. Proposed Ordinance No. 713 - Granting a Franchise to Idaho Power Co., -Third Reading. Ms. Arp moved to suspend the rules requiring reading in full to permit the third reading of proposed Ordinance No. 713 by title only. Mr. Killen seconded. At a roll call vote, Ms. Arp, Mr. Killen, and Mr. Colton voted "aye." The motion carried. Mr. Burton read Proposed Ordinance No. 713 by title as follows: An ordinance in accordance with Idaho Code 50-328, 50-329 and 50-329A granting a franchise to Idaho Power company, A corporation, and. to its successors and assigns, to construct, maintain and operate in and upon the present and futures streets, highways and other public places within the corporate limits of the City of McCall, Idaho, electric utility property and facilities for supplying electricity and electric service to the city, the inhabitants thereof, and others for a term of 20 years, including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics or other communications facilities; setting forth and agreement not to compete, reserving power of eminent domain; providing for the payment of franchise fees; and specifying other limitation, terms and conditions governing the exercise of said franchise. 3 Mayor Killen then asked if anyone wished to comment on the proposed ordinance. Kirk Eimers pointed out that the franchise fee would probably be added to residents' power bills and was thereby a hidden tax. Mayor Killen confirmed that it probably would be added to power bills but that it was not hidden since it was being done in public. He pointed out that a franchise agreement allowed the city to receive revenues from government and nonprofit organizations and that the funds would be dedicated to placing certain power service underground. Since no one else wished to be heard, Ms. Arp moved to approve adopt Ordinance No. 713. Mr. Colton seconded. At a roll call vote Ms. Arp and Messrs. Colton and Killen voted "aye." The motion carried. Sewer Plant /agreement Ted Whiteman of Payette Lakes Water and Sewer District gave a report and asked that the effective date of the agreement be January 1, 1998 to allow one of the plant employees to use his accrued vacation. Mr. Killen moved to approve the agreement with the effective date defen'ed to January 1, 1998. Ms. Arp seconded. Mr. Killen, Ms. Arp and Mr. Colton voted "aye." The motion carried. Carico Subdivision-LID 4 Mr. Burton gave a report concerning the outstanding taxes that were preventing recording of Balshae Subdivision plat which would grant the city the right-of--way necessary to complete the project. Mr. Burton had not exhausted getting the county to simply record the plat but stated that the taxes involved were less than $900. Mr. Killen moved to pay the property taxes from the council's contingency fund. Mr. Colton seconded and the motion carried unanimously. Proposed changes to Reinhard-Boydstun Connector Route The council noted a request from the McCall Fire Protection District to change the route of the proposed Reinhard-Boydstun Connect to provide better access to the west side of the river. The council by consensus referred the letter to the Transportation Advisory Committee. South Loop Watetiine Kari Augustine, Ida Ore, gave a report and presented pay request no. 4 in the amount of $30,495.01 to Owyhee Construction which completed the city's obligation on the contract though there were some administrative items to be completed to inGude aself-appraisal in compliance with the Rehabilitation act. The council, by consensus appointed Ted Burton to complete the requirements of the act. 4 J Ditch On Farm Irrigation progress payment #S in the amount of X98,701.04 and J Ditch Pipeline progress payment #5 in the amourrt.of X141,076.31 _ ..,. _.,_ . __ __ ., , Mr. Colton moved to approve the payments. Mr. IGIIen seconded and the motion carried unanimously. Adjustment Of Utility Account-Robert Retdr~o Jim Henderson, City Clerk /Treasurer, gave report noting that an adjustment was being requested because Mr. Renfro's water usage was high due to a leak. The leak had been repaired but Mr. Henderson noted that the costs of delivery had been incurred. He further pointed out that the city might consider a policy on leaks that were promptly repaired. After discussion, Mr. IGllen moved to approve the recommended denial of adjustment. Ms. Arp seconded and the motion carried unanimously. Ad Hoc Committee on Water Rates Mr. Henderson presented the names of citizens who had expressed an interest in becoming members of the committee: • Kirk Eimers • Wayne Larsen • Scotty Davenport • Paul Bianchetti • Clayton Rudd • Bill Bayse • Don Chapman • Dottie Moore • Barbara Smith • Kay DeFranceso Mr. Killen moved to appoint all who had applied conditioned on their confirmation that they are willing to serve. Mr. Colton seconded and the motion carried unanimously. Water Rates for Mixed Commercial and Residential Premises The council noted a letter from Dr. McManus respecting the billing for Vlla Plaza. By consensus the council agreed to refer the letter to the Ad Hoc Committee on Water Rates. 5 Open Issues On Spring Mountain Ranch Development Mayor Killen brought this matter from the Infomtiation items. Mr. Killen moved to direct staff as follows: (1) that the City Engineer move forward with the irrigation system for the Water Treatment Plant and determine if there will be excess irrigation pipe from the golf irrigation project; (2) that the Golf Superintendent be briefed on the citys obligations under the agreement with the Spring Mountain Ranch Limited Partnership. Ms. Arp seconded and the motion carried unanimously. Acting Ciity Manager • The council noted a written report. Mr. Henderson requested that the council consent to his temporary appointment Judy Sargent as City Treasurer and Cheny Woodbury as City Clerk. Mr. Colton stated that "temporary!' appointments have a way of becoming permanent as was concerned about that these might somehow be construed as permanent appointments. After further discussion, Mr. IGllen moved to approve the appointment of Judy Sargant as "Acting City Treasurer" and Cherry Woodbury as "Acting City Clerk" until the earlier of two weeks after a permanent City Manager assumes duties or December 31, 1997. Mr. Henderson reported that he had been discussing the posibility of obtain machines to verify credit and debit Ards and requested authority to sign contracts to obtain three one for City Hall, one for the Golf Course Restaurant and one for the Pro Shop, the two latter to be paid from golf course funds and the from the general fund. After discussion, Mr. Killen moved to approve the contract with Digital Merchant Systems, lnc. and to authorize the acting City Manager to sign. Ms. Arp seconded and the motion canied unanimously. • Mr. Henderson reported that the City had received about 30 City Manager Applications so far. The council asked that copies be distributed as they came in so they could review them. City Attorney The council noted a written report. City Engineer The council noted a written report. Public Works Director The council noted a written report. s Ms. Colton Asked about the schedule for paving the bike paths and was informed that the project would begin the next week or so. The councl then discussed the September 25~' regular meeting in the both Ms. Arp and Mr. IGllen would not be available. By consensus the City Council decided to cancel the regular meeting on September 25, 1997. Ms. Arp • Asked about the blue curbs in from of the post office. She was informed that the Code Enforcement Officer was enforcing the two hour parking ordinance and that some postal employees claimed to have an agreement with the previous City Administrator. The Chief of Police was working to resolve the conflict and meantime the Code Enforcement Officer would continue to "ticket' overtime parking. ' - Asked about an out-of-city Recreation Card for $20. She pointed out that the card • was contrary to the council's direction in this matter. Staff to investigate and report back. Mr. Killen Stated that he had decided to run for reelection. The following items were received by the council: • Letter To Alana Shoemaker From Jim Henderson Pertaining To Numerous Questions And Answers • Letter To Steve West, DEQ, From Gary Shimun Re Wastewater Treatment and J Ditch • Letter To Rich IGnder, Toothman Orton, .From Brian Petersen, Contractors Northwest, Re Water Treatment Plant Project • Letter To Peter O'Neill, SMR, From Ted Burton Regarding Fall CreekBlackwell Lake Water Rights • Letters To Helen Chenoweth And Mike Crapo From Gary Shimun Re J Ditch Funding • Letter To Carla Donica From Judd And Diane DeBoer Regarding Speed Limit On W Lake • Letter To Idaho Human Rights Commission From Ted Burton Re 2nd Discrimination Complaint -Judy Sargent Vs City • Letter To Judge Darla Williamson From Ted Burton Concerning Officer Jerry Summers' Prior Dispute And Employment With The City • Letter From Gary Shimun Regarding After School Care Program • Planning And Zoning Commission Minutes Dated September 2, 1997 7 • Area Of Impact Planning And Zoning Commission Minutes Dated August 26, 1997 • Planning And Zoning Commission Minutes Dated August 21, 1997 -Special Meeting • Planning And Zoning Commission Minutes Dated August 19, 1997 • Area Of Impact Planning And Zoning Minutes Dated July 22, 1997 • PENPAL Greeting Notice - Warning Hoax • Notice From Payette National Forest Re Tailhoft Timber Sale • Action Update Without further business, Mr. Colton moved to adjourn. Mr. IGllen seconded and the motion carried unanimously. The counal adjourned at 11:00 P.M. ATTEST: William M. IGllen, Mayor James H. Henderson, City Clerk 8 C'~ty of McCa11 MINUTES Regular Meeting of the McCall City Council -Thursday, June 12, 1997 Table of Contents Call to Order and Roll Call ............................................................................................................................. 3 Public Comment ............................................................................................................................................ 3 Consent Agenda ............................................................................................................................................ 3 Unfinished Business ...................................................................................................................................... 4 Ordinance 713 Respecting a Franchise Agreement with Idaho Power Co ......................................... 4 New Business ................................................................................................................................................ 5 Bid Openings -Lick Creek Road Paving Project ................................................:................................. 5 Paving Plan ............................................................................................................................................. 5 Certificate of Substantial Completion -Water Treatment Plant ........................................................... 5 Change Order #1 -Lift Station #6 (Yacht Club) Upgrade ..................................................................... 5 Water and Sewer Capital Fees .............................................................................................................. 5 Professional Services Agreement with ,l-U-B Engineers-Mather Road Sewer Rehabilitation........... 5 Request for Adjustment of Utility Account - Vllage Square Association ............................................. 6 Progress Estimate #2 J-Ditch On-Farm Irrigation ($6,902.29) and Progress Estimate #2 J-Ditch Pipeline ($395,672.86) ........................................................................................................................... 6 Award of J-Ditch Contract ...................................................................................................................... 6 Pay Request #3 and Change Order #2 East Lake Street Road, Water and Sewer Improvements - Bezates Construction ............................................................................................................................. 6 Golf Course Irrigation Proposal for an Automated Valve ..................................................................... 6 Staff Reports .................................................................................................................................................. 6 City Manager Report .............................................................................................................................. 6 City AttomeYs Report ............................................................................................................................. 6 Ordinance No. 714-Respecting Paintball Weapons at an Approved Range ........................7 City Clerk Treasurer's Report ................................................................................................................ 7 Mayor and Council Comments and Reports ................................................................................................ 7 Mr. Martens ............................................................................................................................................. 7 Mr. Colton ................................................................................................................................................ 7 Ms. Arp .................................................................................................................................................... 8 Mr. Killen ..................................................................................................................8 Correspondence and Information Items ....................................................................................................... 8 Adjoumment ................................................................................................................................................. 10 2 Minutes-McCall City Council Regular Meeting -Thursday, June 12, 1997 • The meeting was called to order by Mayor Killen at 7:00 P.M. • Ms. Arp and Messrs. Colton, Martens, and Killen answered the roll call. Mr. Eckhardt was absent. A quorum was present. City Staff present included: (1) Ciry Manager Gary Shimun; (2) City Attorney Ted Burton; (3) City Clerk-Treasurer Jim Henderson; (4) City Engineer Jackie DeClue; (5) Staff Planner Andy Locke; and (6) Public Works Director Bill Keating. The mayor then called for public comment. The following were heard: Curtis Spaulding requested that the tree removal from rights-of-way along Forest Street and Mather Road delayed in order to receive public comment. The council referred the matter to staff for a report. Andy Locke requested that the final plat for Jacob's Manor be added to the agenda. It was so ordered. Mr. Locke then reported the findings and conclusions of the Planning and Zoning Commission. Mr. Cotton moved to adopt the findings and conclusions of the commission as those of the council and to approve the plat except that the word "preliminary' in Finding 4 be amended to read "final" and subject to the two conditions in the commissions conclusions. Ms. Arp seconded and the motion carried unanimously. The council then discussed the Post Office location. Mr. Burton reported that the U.S.P.S. Site Selection Committee wanted to report on its feasibility analyses. The council had not received input from all of its advisory committees. Rick Fereday reported that he could not speak for the Downtown Planning Subcommittee but that the Post Office Usion Committee had ranked the sites as fo4lows: (1) Urban Renewal Site (E. Pine St.); (2) Den- Site (E. Park St.); (3) Hehr Site (E. Hemlock St. & Mill Alley); and {4) Deinhard Site. The council then discussed scheduling the U.S.P.S. Site Selection Committee request. After discussion it was suggested that a special meeting be called for June 25 or 26 after Mr. Burton had coordinated further with the committee. The following items were included on the consent agenda: •Minutes of May 22, 1997 -Regular Meeting 3 .Minutes of May 21, 1997 -Special Meeting .Library Board Minutes dated May 15, 1997 .Vender Invoice Approval List dated June 6, 1997 .Payroll Report dated June 2, 1997 .Payroll Report dated May 30, 1997 .Payroll Report dated May 20, 1997 .Acknowledge Receipt of Claim for Damage or Injury by Larry Baum .Pay Request No. 4 for $57,312.52 for work done on Water Pump Stations by Ross Enterprises. .Approval of Hand Check for Surplus Equipment Auction Sale Mr. Colton moved to approve the consent agenda. Ms. Arp seconded and the motion carried unanimously. Ordinance 713 Respecting a Franchise agreement with Idaho Power Co. Mr. Shimun reported that he had passed to fdaho Power some of the council's concern and that Idaho Power had not yet completed addressing those concerns. Mr. Killen then moved to suspend the rules requiring reading in full to permit the second reading of Ordinance No. 713 by title only. Mr. Martens seconded. At a roll call vote, Messrs. Killen, Martens, Colton and Ms. Arp voted "aye." Mr. Burton then read the proposed Ordinance by title as follows: An ordinance in accordance with Idaho Code 50-328, 50-329 and 50-239A granting a 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 McCall, Idaho, electric utility property and facilities for supplying electricity and electrical service to the city, the inhabitants thereof, and others for a term of _ years, including the nonexclusive right to locate and maintain telephone, cable, fiber optics or other communications facilities; setting forth an agreement not to compete, reserving power of eminent domain; providing for the payment of franchise fees; and specifying other limitations, terms and conditions governing the exercise of said franchise. 4 Bid Openings -Lick Creek-Road Paving Project Mr. Keating gave a report of the bids received and recommended award of the bid to Boise Paving and Asphalt Co. Mr. Colton moved to award the contract to Boise Paving for the bid amount of $71,756.00. Ms. Arp seconded and the motion carried unanimously. Paving Plan Mr. Keating presented an updated 5-year paving plan. Mr. Martens noted that several items that were fairly early in the old plan had been slipped significantly. Council directed staff to reconcile the new plan with the old one and to be prepared to explain changes. Certificate of Substarrtial Completion -Water Treatment Plant Mr. Shimun reported that there was still a significant "punch" list and recommended that the matter be deferred. The council took no action. Change Order #7 -Lift Station #6 (Yacht Club) Upgrade Ms. DeClue gave a report noting that the change order amended the completion time and was needed due to the previous unavailability of the necessary pumps. Mr. Martens moved to approve the change order. Mr. Colton seconded and the motion carried unanimously. Water and Sewer Capital Improvement Fees Ms. DeClue presented a report proposing capital improvement fees for the following: • Finishing Touch/Deinhard Lane Suite B/$1,944 • Dollar Mart/Deinhard Lane Suite D/$1,944 • McCall Bakery/Deinhard Lane Suite C/$6,080 • McCall Air TaxilMcCall Airport/$998 Mr. Killen moved to approve the fees recommended. Mr. Martens seconded and the motion carried unanimously. Professional Services Agreement with J-U-B Engineers-Mather Road Sewer Rehabilitation. Ms. DeClue gave a report. Mr. Colton moved to approve the agreement. Nls. Arp seconded. At a roll call vote, Mr. Colton, Ms. Arp, Mr. Martens and Mr. Killen voted "aye." The motion carried. 5 Request for Adjustment of Utility Account -Village Square Association • Mr. Henderson gave a report pointing out that since last summer, the association's water consumption had increased dramatically. This was discovered to be due to a broken water line. Since sewer fees are tied to water consumption, the association was requesting an adjustment to its sewer fee in as much as water lost from the broken line did not enter the sewer system. The requested amount of $1,907.18 represented the difference between the historical average consumption and actual charges from October 2, 1996. Mr. Henderson reported that he had verified and concurred with the computation and recommended that the adjustment be approved. Ms. Arp moved to approve the adjustment. Mr. Killen seconded and the motion carried unanimously. Progress Estimate #2 J-Ditch On-Farm Irrigation ($6,902.29) and Progress Estimate #2 J-Ditch Pipeline ($395,672.86) Mr. Shimun gave a report. Mr. Killen moved to approve both requests. Mr. Colton seconded and the motion carried unanimously. Award of J-Ditch Contract Mr. Shimun gave a report. Mr. Martens moved to approve the contract award. Mr. Colton seconded. At a roll cal( vote Mr. Martens, Mr. Colton, Ms. Arp and Mr. Killen voted "aye." The motion carried. Pay Request #3 and Change Order #2 East Lake Street Road, Water and Sewer Improvements - Bezates Construction Mr. Shimun gave a report. Mr. Colton moved to approve the pay request in the amount of $61,188.63 and to approve the change order in the amount of $575.00. Ms. Arp seconded and the motion carried unanimously. Golf Course Irrigation Proposal for an Automated Valve Mr. Shimun gave a report noting that the proposal was to install an automated valve on the irrigation pond fill line. The council by consensus directed staff to get a formal proposal and bring the matter back to the council. City Manager Report • The council noted a written request. • Mr. Shimun provided the council with an evaluation form and last years goals and objectives. He further provided a new set of goals and objectives for the coming year in anticipation of his annual performance evaluation in July. City Attorney's Report • The council noted a written report. 6 • Mr. Burton reported that the DASCO equipment had been removed from the Harrell Property. • Mr. Burton then proposed the .passage of Ordinance No. 714 relating to the use of paintball weapons at an approved range or course. Mr. Killen moved to suspend the rules requiring three readings in full, to permit the passage of Ordinance No. 714 after one reading by title only. Mr. Martens seconded. At a roll call vote, Mr. Killen, Mr. Martens, Mr. Colton and Ms. Arp voted "aye." The motion carried. Mr. Burton then read the proposed ordinance by title as follows: • An ordinance of the City of McCall, Idaho, relating to the use of paintball weapons at and approved range or course; and providing an effective date. Mr. Killen then moved to adopt Ordinance No. 714. Ms. Arp seconded. At a roll call vote, Mr. Killen, Ms. Arp, Mr. Colton and Mr. Martens voted "aye." The motion carried. • Mr. Burton then presented a settlement on the Golf Cart Storage Building for $23,000. Mr. Martens moved to approve the settlement. Mr. Colton seconded. At a roll call vote, Mr. Martens, Mr. Colton., Ms. Arp and Mr. Killen voted "aye." City Clerk Treasurer's Report • The council noted a written report. • Mr. Henderson reported on the surplus property sale and the progress of the FY 1997- 98 Budget preparation Mr. Martens • Commented on the gradual increase of council items presented at the meeting as opposed to being in the council packet. • Reported an upcoming meeting of the Idaho Transportation Department and discussion of the Deinhard-Boydstun Connector. • Pointed out an accumulation of trash at the Stein & Volk property on Mission Street. • Noted that the city should make every effort to preserve trees in the public rights-of- way and suggested that when trees must be removed, planting new ones at more appropriate locations might be an approach. Mr. Colton • Noted that the merry-go-round had been reinstalled at Rotary Park and was being enjoyed by children. 7 • Pointed out that he had seen some cars being sold at the McCall Airport that looked like a dealer operation. Mr. Shimun reported the he had seen the cars also and was investigating. Ms. Arp • Asked for and was provided a copy of the proposed sign ordinance. Mr. Kitten • Asked if there had been a resolution of the Cemetery property lines with respect to the Deinhard relocation project. Mr. Shimun reported that a meeting had been scheduled with the Cemetery District Board on June 17. • Reported that Hole #4 of the new nine holes which was over a wetlands had been tom up. That area may be off limits under the 404 wetlands permit. The following items were reviewed and acknowledged by the council: • A memo to Mike Combs from Rich Kinder, Toothman-Orton Re: Golf Course Irrigation Water System Improvement Project • A fetter to Mike Combs from Rich Kinder, Toothman-Orton Re: Domestic Water Service to Public Facilities at the Golf Course • A letter to Brian Peterson, Contractors Northwest from Rich Kinder, Toothman Orton Re: Completion Certificate on Water Treatment Plant • A memo to Rich Kinder, Toothman-Orton from Ted Burton Re: Change Order No. 3--Drawing C3 Punch list • A letter to Rich Kinder, Toothman-Orton from Brian Petersen, Contractors Northwest Re: Water Treatment Plant Project • A letter to Dave Ross, Ross Enterprises, from Rich fender, Toothman-Orton Re: Fire Hydrant Assembly Connection • A letter to Jackie DeClue from Gary Himes, White-Leasure Re: Sewer and Water Capitalization Charges-Marketplace at McCall • A letter to Paul King, Department of Transportation, from Mark Limbaugh, Lake Reservoir Company, Re: Piles of Asphalt and Debris Left on Property. • A letter to Gary Shimun from Joe King, DEQ Re: Cascade Watershed Technical Advisory Committee-June Meeting • A Letter of Invitation to Gary Shimun from Stephen West, DEQ to J-Ditch Project Ground Breaking Ceremony 8 An Executive Summary of the Technical Study Repott Big Payette Lake Water Quality Council A letter to Rick Welch, West. Central Highlands RCS~D Council. ,from Russel ,.. Manwaring, Department of Agriculture, Re: WCH RC8~D Nan-alive Report January to May 1997 A flyer on Watermilfoil Weed • A letter to John Schroeder, Schroeder and Lezamiz, from Ted Burton Re: Wyman Steel Building at Golf Course Memos to various committees from Ted Burton proposing Business License Ordinance • A Warranty Deed for Real Property from Barbara Ady to the City of McCall A Grant Deed Granting Right-of--Way from Michael and Diane Logan to the City of McCall A Letter of Intent to Lany Smith, Our Savior Lutheran Church from Gary Shimun Re: Deinhard Boydstun Right-of-Way A memo to Council from Bill Keating Re: Dust Oil and Chip Seal Projects ICRMP Loss Run for May 1997 • Local Highway Technical Newsletter • A letter to Idaho City Managers and Administrators Association from Gary Shimun Re: Conference in Sun Valley • A letter to Carf Wilgus, Idaho Travel Council supporting the Chamber of Commerce in submitting a grant application A thank you letter to Gary Shimun from Joy McMinn, Investors Title, for speaking at a meeting. • Big Payette Lake Water Quality Council Newsletter • The Messenger Newsletter • ATI Newsletter • The Council Action Update. 9 MINUTES McCall City C©uncil Regular Meeting, Thursday, May 22,1997 ' Call To Order And Roll Call The meeting was called to order at 7:00 P.M. by Mayor Killen. 2. Mr. Martens, Mr. Colton, Ms. Arp and Mr. Killen answered the roll call. A quorum was present. City Manager Gary Shimun, City Attorney Ted Burton, City Clerk-Treasurer Jim Henderson, Staff Planner Andy Locke, Recreation Director Bob Peckham and Golf Superintendent Mike Combs of the City Staff were also present. Minutes Of Previous Meeting(s) 3. Minutes Of Mav 1, 1997 - Regular Meetinc Mr. Martens moved to approve the minutes. Mr. Colton seconded and the motion carried unanimously. Payment Of Claims 4. Vendor Invoice Approval List Report Dated Mav 16, 1997 - Mr. Colton moved to approve the claims listed on the report. Mr. Martens seconded and the motion carried unanimously. Pavroll Report Dated Mav 6, 1997- Mr. Martens moved to approve the payroll. Ms. Arp seconded and the motion carried unanimously. 6. Payroll Report Dated May S, 1997 - Mr. Colton moved to approve the payroll. Mr. Killen seconded and the motion carried unanimously. Public Comment The mayor called for public comment. The following were heard: 7. Dcrane Smitli - Mr. Smith commented regarding the water rates to be discussed later on the agenda. P&Z Findings and Conclusions in Sunnort ofADnroval of a Conditional Use Permit - Pat and J.L. Scott Guest House -This item was moved forward on the agenda. Mr. Locke gave a report. Ms. Arp moved to adopt the Findings and Conclusions of the Planning and Zoning Commission and approve the Conditional Use Permit. Mr. Colton seconded and the motion carried unanimously. Public Hearing Noticed For 7:1~ P.M. Water Rates And Golf Fees - l~'ater Rates The mayor stated that it was the time and place properly noticed for a hearing on water rates. Mr. Henderson reported on his analysis of system usage and costs Minutes, McCall City Council Regular Meetino, May 22, 1997 PaEe 1 and presented two alternatives. The mayor then opened the hearing to public testimony. The following were heard: Joanne Catlett provided copies of water rates for Sun Valley, Meridian and Boise and questioned the city's need to increase the rates. Duane Smith stated that costs may effect his ability to operate a profitable car wash. Mike Anderson applauded flow based charges and suggested lower base charges. He further suggested that the council consider negotiated rates for high water users. Golf Fees -Mayor Killen introduced the hearing on Golf Fees. He then opened the meeting to public testimony. No one wished to be heard. The mayor then closed the hearing to public testimony. After discussion, Mr. Killen moved to adopt the fee schedule adopted and effective on April 17, 1997. Ms. Arp seconded and the motion carried unanimously. After further discussion, Ms. Arp moved to adopt Alternative One set forth in the Municipal Water Rate Analysis. Mr. Colton seconded and the motion carried unanimously. Public Comment (Continued) 10. Airport Master Plan - Chuck Sundby gave a report on the status of the Deinhard Realignment Project (AIP 06). Dave Rickerson of Transportation Solutions reported on the Airport Master Plan development and status. 11. P & Z Findin.as And Conclusions In Support Of Approval Of Construction In Scenic Route Overlay District -Cantrell -Commercial Structure Mr. Colton moved to adopt the Findings, Conclusions and Recommendations of the Planning and Zoning Commission. Mr. Martens seconded and the motion carried unanimously. 12. McCall Paintball Club And BMX Bike Track -Bob Peckham gave report. Mr. Colton moved to approve the request subject to the comments and conditions of the Parks and Recreation Committee. Ms. Arp seconded and the motion carried unanimously. 13. Summary Of Bids -Golf Course Equipment Mike Combs gave a report. Mr. Henderson commented that the four items were within the budget amount, but that only two items were itemized in the budget. Mr. Colton moved to approve the purchase of all four items for a total of $61,995. Ms. Arp seconded. At a roll call vote, Mr. Colton, Ms. Arp, Mr. Martens and Mr. Killen voted "aye." The motion carried. 14. P & Z Findings And Conclusions In Support OfApproval Of Conditional Use Permit - Err~le Crest - SMR Block 11 Mr. Locke gave a report. Mr. Killen moved to approve the Commission's Findings, Conclusions and Recommendations concerning the Conditional Use Permit subject to more specific language for condition 3a respecting impact on the property to the west and written confirmation that this development represents 56 lots toward the 400 lots that will regttire O'Neill Enterprises to construct the Eastside Bypass. IVIr. Martens seconded and the motion carried unanimously. Minutes, McCall City Council Re~lar Meeting, May 22, 1997 Paee 2 Old Business 15. Simplot Easement Agreement - Mr. Burton gave a report and recommended that the ' council approve the substance of the agreement and authorize the mayor to sign the final agreement if it did contain any substantive departures from the form before the council. Mr. Killen moved to accept the staff recommendation. Mr. Colton seconded and the motion carried unanimously. New Business 16. Bid Openings Chip Sealing and Dust Oiling Mr. Henderson gave a report. The council reviewed a written report and recommendation from Bill Keating, Public Works Direction. After discussion, Mr. Martens moved to approve the bids as follows: - Chip Sealing Project - to Snake River Construction for $93,925.37 - Dust Oiling Project - to Lyman Dust Control, Inc. at $0.84 per gallon with an estimated costs of $22,008.00. Mr. Colton seconded and the motion carried unanimously. 17. Memorandum Of Understanding And Ordinance Pertaining To Idaho Power Franchise - Mr. Shimun gave a report. Mr. Killen outlined some concerns. Mr. Martens moved to suspend the rules requiring reading in full to permit the first reading of proposed Ordinance No. 713 be by title only. Mr. Killen seconded. At a roll call vote, Mr. Martens, Mr. Killen, Mr. Colton and Ms. Arp voted "aye." The motion carried. I~Ir. Burton read the ordinance by title as follows: "AN ORDINANCE hi ACCORDANCE WITH IDAHO POWER CODE 50-328, 50-329, AND 50-329A GRANTING A 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 LIlVIITS OF THE CITY OF McCALL, IDAHO, ELECTRICAL UTILITY PROPERTY AND FACITLIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIlVIITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE." Council then ordered the matter to the next agenda. 18. Joint Powers Agreement - JDitch - Mr. Burton gave a report and recommended that the council approve the substance of the agreement and to authorize the mayor to sign the final agreement if it did contain any substantive departures from the form before the council. Ms. Arp moved to approve the staff recommendation. Mr. Killen seconded and the motion carried unanimously. Minutes, McCall City Council Regular Meeting, May 2~, 1997 Page 3 19. Request For Reimbursement -Progress Estimate #1 - J Ditctr Pipeline Association, Inc. Mr. Henderson gave a report. Mr. Killen moved to approve the Pay Request. lVlr. Martens seconded and the motion carried unanimously. •20. Non Resident Fees -City Recreation Department - Mr. Peckham gave a report and recommendation that programs contain a nonresidential rate 10% higher than the resident rate. Mr. Killen moved to approve the recommendation. Mr. Colton seconded. At a voice vote, Mr. Killen and Mr. Colton voted "aye" and Mr. Martens and Ms. Arp voted "Nay." The motion failed. Mr. Martens moved to approve the recommendation but with a nonresident fee of 25% higher than the resident rate. Ms. Arp seconded. At a voice vote, Mr. Martens and Ms. Arp voted "aye" and Mr. Killen and Mr. Colton voted "Nay." The motion failed. Mr. Martens moved to approve the recommendation but with a nonresident fee of 20% higher than the resident rate. Mr. Killen seconded. At a voice vote, Mr. Martens, Mr. Killen and Ms. Arp voted ``aye" and Mr. Colton voted "Nay." The motion carried. Mr. Peckham then gave a report on the a proposed BMX track at Riverfront Park. Mx. Martens requested that the Parks and Recreation Advisory Committee look at a Long Range Plan for Riverfront Park since there are many groups looking at that area. Mr. Colton moved to approve the proposal. Ms. Arp seconded and the motion carried unanimously. 21. Resolution 4-97 Accepting Grant Offer SG-1894-04. Mr. Killen moved to accept the grant, adopt Resolution 4-97 and authorize the mayor to sign. Mr. Martens seconded and the motion carried unanimously. 22. water And Sewer Capital Improvement Charges - T'tie Name Dropper - Ms. DeClue gave a report. Mr. Killen moved to approve the recommendation. Mr. Martens seconded and the motion carried unanimously. 23. Idaho Work Experience Program Mr. Henderson reported on this program which is to temporarily place welfare recipients with employers to gain job experience. The council took no action. 24. Volunteer Award Nominations -Robert wood and Roy Watson Awards The council, by consensus agreed to nominate Scott Davenport. Mr. Killen will write a letter of recommendation. 25. AIC Poticy And Resolutions Committee - Mr. Killen asked if any council members would be able to attend the AIC Policy and Resolutions Committee meeting in Sun Valley. No one was able to attend and the council took no action. Consent Calendar ~'6. Letter To Gary Shimun From SteveNlillemann, Millemann, Pittenger & McMahan, Regarding Brian Charles' Property ~7. EPA Region 10 Community Based Environmental Protection Grants Initiative 28. McCall Area Chamber Of Commerce Ballot ~'9. ivlemo To Gary Shimun From Rich Kinder, Toothman Orton, Re: Grading Plan Water Treatment Plant Minutes, McCall City Council Regular Meeting, May 32, 1997 Pa~~e ~ 30. Letter To Rich Kinder, Toothman Orton, from Brian Petersen, Contractors Northwest, Regarding Water Treatment Plant Project 31. Letter To Brian Petersen, Contractors Northwest, From Rich Kinder, Toothman Orton, Concerning Chlorine Analyzer -Water Treatment Plant •32. Letter From US Department Of Interior Relating To Interested Parties In Reclamation's Water Recycling Initiative 33. Letter To Wayne VanCour From Joe King, DEQ, Re Cascade Reservoir Coordination Council -May Meeting 34. Memo To Lumberman's Building Centers From Bill Keating Re Water Meter Connection 35. Letter To Gary Himes, White Leisure Development Co., From Jackie DeClue Regarding Water And Sewer Capitalization -Fly Fishing Shop And The Name Dropper 36. Letter To Monte Marchus, DEQ, From Jackie DeClue Pertaining To Stibnite Street Water Line Improvements 37. Memo To Sue Anderson From Bill Keating Concerning Sewer Hook Up On 927 Lick Creek Road 38. US Post Office Vision Announcement -Short List Of Sites 39. Letter To US Postal Service From Ken Twergo, Broker, By Ted Burton Re Intent To Offer 40. Letter From Ron Coil And Nicki Gustin Concerning Proposed Post Office Site 41. Letter To Diane Mansisidor, McCall Senior Citizens, From Jim Henderson Regarding Lease 42. Bulletin On Local Highway Jurisdictions' Response On Transportation Resources Management 43. ICRMP Loss Run For Month Of April 44. State Insurance Fund Report Of Claims 45. Controlled Substance Testing Report 46. Complaint Letter To Gary Shimun From Cliff Lee Regarding Paving Of Thula Street 47. Memo To Gary Shimun From Bill Keating Re Summer Digging Schedule 43. Letter From Randy Shroll, Department Of Commerce, Re Potential Business Prospects 49. Letter Of Thanks To Bill Killen From NancyNadolski, Healthwise Communities Project 50. Letter To Bill Killen From Larry Smith, VALUED Inc, Regarding Program Plan - 51. Letter Of Thanks To Bob Peckham From Mike Wetherell, Hyde Wetherell Bray Haft & French 52. AIC Policy & Resolutions Committee Meeting 53. P & Z Findings And Conclusions In Support Of Approval Of Preliminary Plat Of Subdivision - SMR Phase 3 54. P & Z Findings And Conclusions In Support Of Approval Of Preliminary Plat Of Subdivision - SMR Block 11 55. P & Z Findings And Conclusions In Support Of Approval Of Scenic Highway District Construction -Hometown Pizza 56. P & Z Findings And Conclusions In Support Of Approval Of Scenic Highway District Construction ~- Cyber Chamber 57. Impact Area P & Z Joint Commissions Minutes Dated Nfay 5, 1997 58. Impact Area P & Z Joint Commissions Minutes Dated April 2$, 1997 59. City Impact Area P & Z Commission 1~Iinutes Dated April 8, 1997 60. West Central Highlands RC & D Council Agenda And Meeting Minutes 61. The Bottom Line Bulletin 62. Action Update Nlinutes, McCall City Council Regular Meeting, May 22, 1997 Paee 5 Staff Reports 63. City Manager - • a. The council noted a written report. b. Mr. Shimun reported on his discussion with Phil Choate of Ida-Ore respecting two projects for possible ICDBG funding, one of which is the Deinhardt-Boydstun Connector. 64. City Attorney - a. The council noted a written report. b. Mr. Burton reported on an intention by the McCall Urban Renewal Agency and others to offer to sell land for a post office site. c. Mr. Burton reported on his notiations with the Goodman Family regarding trading real property. d. After discussion, Mr. Killen directed the City Attorney to Proceed with judical condemnation of the Golf Cart Rental Building. 65. City Clerk/Treasurer a. Mr. Henderson reported on his attendance at the Mountain West Municipal Clerks And Treasurers Institute. b. Request For Hand Check Approval For June Utility Billing -Mr. Martens moved to approve the issuance of a hand check for the June utility bills. Mr. Colton seconded and the motion carried unanimously. 66. City Engineer -- The council noted a written report. 67. Public Works Director -- The council noted a written report. 68. Recreation Director -- The council noted a written report. Mayor and Council Comments and Reports 69. Mr. Colton - a. Asked about Chief Donica's condition. Mr. Shimun reported that she has some tests conducted that were not conclusive. b. Asked Mr. Shimun to remind Mike Combs that the merry-go-round for Rotary Park needed to be repaired and reinstalled. Minutes, McCall City Council Rea lar Meeting, May 22, 1997 Pose 6 70. Mrs. Arp - a. Asked about Bike Paths and who is responsible to clean them. Mr. Shimun ' reported that they are public rights of way and city has a street sweeper for that purpose. b. Asked to consider the City Attorney Proposals Received. Mr. Shimun gave a report. After discusion, Mr. Colton moved to reject all proposals with thanks to the parties concerned. Ms. Arp seconded and the motion carried unanimously. 71. Mr. Martens - Asked if the Transportation Committee is working on a master plan and was informed that it is. b. Conveyed to staff a citizen's compliment about the Public Works Department's resolution of a drainage problem at the east end of Colorado Street. 74. Mr. Killen - Reported that he had heard that the golf course irrigation contractor would be back on the job on May 26a' and that the contractor needed to complete the work on Number 18 as the excavations had settled to well below ground level. Adjournment 75. Without further business, Mr. Colton moved to adjourn. Mr. Killen seconded and the motion carried unanimously. ATTEST: James H. Henderson, City Clerk The council adjourned at 1:05 A.M. May 23, 19 ~~ ~~~ ~'~ William M. Killen, Mayor Minutes, McCall City Council Regular Meeting, May 22, 1997 Pabe 7 EXHIBIT B PAGE 11 -THE STAR-NEWS -THURSDAY, OCT013ER 9, PUBLIC NOTICES AND ESCROW COMPANY. ties for supplying electricity to the City, and expenses or liabilityarisingfromorby reason of APPROVED by the Mayorthis I Ilh day of requested, ITD will arrange to reasons Said salewillbemadewithoutcovenantor tbe inhabitants thereof, and to persons and any negligent actoromissionoftheGrantee,its September, 1997. commodate, within the limitations warranty regarding title, possession, orencum- corporations beyond the limits of the City, representatives or employees, in the constmc- William Killen, Mayor. ATTEST: C.W. facilities available,those disabled persc brances, to satisfy the obligations secured by including the nonexclusive right to physically lion, operation or maintenance of any of the Woodbury, Acting City Clerk want to attend this public information rt and pursuant to the power of sale conferted in locate and maintain telephone, cable, fiber Grantee's electric utility property or facilities. ACCEPTANCE including those with impaired vision c the Deed of Trust, dated April 30, 1996 by optics or other communications facilities of SECTION 7. Upon acceptance of this fran- IDAHO POWER COMPANY, as the fran- ing. Please direct requests to Julie Pipal MICHAELL. EVERHARTANDJENNIFER the Grantee or other parties, (provided, that chisebyGranteeandbeforeGranteeshallhave chisee, accepts the franchise set forth in the Involvement Coordinator, at (208) 33~ J. EVERHART as Grantors to Mountain Title _ Grantee shall comply with the City's require- any rights hereunder, Grantee shall file with the above Ordinance and agrees to abide by the 2t 10/9 & Escrow Company, Inc. as Trustee, for [he menu for cable system franchises) all subject City ClerkaCenificateoflnsuranceevidencing terms and conditions thereof. PUBLIC NOTICE benefit and security of Befleficial Mortgage tolhetrnnsandconditionshereinafterspeci- General Liabilitylnsurancewhichcoversclaims D.H. Jackson, Vice President, Corporate NOTICE IS HEREBY GIVEN t Co. of Idaho as Beneficiary recorded on the I st tied. In the case of annexation of property to for Bodily Injury, Property Damage and Per- Affairs. I [10/9 McCall Memorial Hospital District w day of May, 1996, in the official records of the corporate limit, such area wilt be constd- sonal Injury. Such insurance shall have an open community meeting nn Th Va1leyCounty,IdahoRecord'slnstrumenlNo. eredunderlhisagreement,uponeffectivedate minimum limits ofS1,000,000peroccurtence. " Oc ober 16 1997 from 7:00 - 9:1H) p.r ? 17831. The Grantors named herein are listed of tFre annexation, subject to Section 9 hereof. The City of McCall shall be named as an Ad " ' ELECTION NOTICES t , ' Pa ette Lakes Middle School multi to comply with Section 45-1506 (4) (a) of the AB such electric utility property and facilities ditional Named Insured under Grantee s room. Residents from the hospital servi Idaho Code. Norepresentationis madewhether now maintained by the Grantee within the c insurance policy. Should the minimum limits including Riggins New Meadows P or not they are curtenlly responsible for the streets,alleys, highways andolherpublicpla es of insurance as set forth herein be increased These in orm ou o uestions bein f Y j9 8 , , Donnelly Council and Cascade are i« ohligation listed herein. within the corporate limits of the City shall be above $1,000,000, pursuant to the Idaho Tort put to the electorate and who qualifies to , attend. The purpose of the meeting is Foreclosure is bein effected because of g deemedcovered b lhisordinanceas rovided Y P Claims Act (Idaho Code Section6-901eLSeq.) vote on thequeshon. ublic comment from communit m P Y defaultinthepaymentoftheobligationdueand owing from the Grantor to Beneficiary and herein. SECTION 2.All of the Grantee's electric or any similar legislation, the Granteeshallbe required to provide the Cilywith anew Certifi- MCCALL FIRE PROTECTION regarding a two year hospital Actio evidenced by a Promissory Note, which said Properly and facilities in and upon the present cafe of Insurance evidencing the higher limits DISTRICT ELECTION CANCELED 3[10!16 obligation is secured by the said Deed of Trust; and future streets, alleys, highways and public upon the City's request. As there was only one candidate for Com- said default consisting of: payments in the amount of $680.1 I due for May, June, July, places within the corporate limits of the City shall be constructed and at all times main- SECTION 8. The electric service to be furnished to the public hereunder, and all rates missioneroftheMeCallFireProtectionDistrict, subdistrict number 1 and 2, the election to fill FINANCIAL NOTIC August, 1997 andeachand every month there- rained in good order and condition and in and charges therefor, and all regulation of the these positions have been canceled. after plus delinquent interest and any late accordance with standard engineering prat- Grantee hereunder, shall at all times be subject Donald M. Clark wastheonlypersontofile charges for a total amearage at this time in the [ices and all applicable safety codes and lawful to all rules, regulations and orders that maybe for the position of Commissioner for subdis- These notires inform you ajfinancfal t amountof$2610.70. Paymentof all delinquent governmental regulations, including all appli- lawfully prescribed by the Idaho Public Utili- trio one, in which you may have an interest. taxes and insurance. cable state and federal regulations and all ties Commission orby any othergovemmental Marvin R. Heikkila was the only person to NOTICE TO CREDITORS By reason of said default, the Beneficiary construction standards presently in effect by authority now or hereafter having jurisdiction file for the position of Commissionero(subdis- PROBATE N Sp-97.20RC hasexercised its option in the Deed of Trust to the Idaho Public Utilities Commission or over such matters. During the term of this Intl tw°. . declare the entire indebtedness and accrued adopted by that Commission during the term franchise, Grantee shall at all times assure that Cancellation of the election under such ESTATE OF ROY I,. HARNDF interest, late charges, attoroey's fees, trustee's of this franchise agreement. customers within the City have access to cos- circumstances is permitted under Section 34- DECEASED fees and other costs or expenses associated SECTION 3.Upon request of the City, the tourer service from the Grantee as required by 1407, Idaho Code. Notice is hereby given that the node with this foreclosure to be due and payable. Grantee shall relocate its facilities as oaten- the Idaho Public Utilities Commission. Theelection wastohave beenheld Novem- has been appointed Personal Represent The principal balance owing as of [his date nary wi[hinthe presentand fu[urestreets,alleys, SECTION 9. Ascompensation forlhe right, her 4, 1997. 1110/9 the above-named estate. All persons is $61,334.41 plus variable interestatacurtent highways and other public places owned by privilege and(raochiseherebygranted,Grantee claims against the said deceased or hi rate of 13.00% per annum, and any other costs the City. The City shall have no responsibility agrees to pay to the City on or before the 30th arc required to present their claims wilt orezpensesassociatedwiththisforeclosureas (or the costs of such relocations. The Grantee day of January, April, July and October, an MEETING NOTICES monthsafterthedateo(firstpuhlication provided by the Deed of Trust, the Promissory shall bear the cost of relocating its facilities at amount equivalent to one percent (I %) of notice, or said claims will be forever Note orldahoLaw. theCity'srequest,unlessthefacilitiesaretobe Grantee's "gross revenues" for the preceding Claims must citherbepresentedrotheP Dated: this 19th day of September, 1997 relocated for the benefit of a thin) party, in calendar quarter. For purposes of this Section, These notices injorm you ojspecial Representative o(the Estate at the tow n Trustee: Mountain Title&Escrow Com- which case [he third party shall pay the costs of "gross revenues'' shall mean the amount of meetings of governing bodies and the topics Louie Gorrono, 105 N. Hayes, P.O.. B~ pony, inc. relocation. In the event federal, state or other money billed by the Grantee for the electricity to be discussed in case you wish !o attend. Emmett, Idaho, or filed with the Cler{ By: Colleen L. Cole, Corporate Secretary funds are available in whole or in part for it sells within the corporate limits of the City to Magistrate's Court, Valley County, Id; 4t10l30 utility relocatingpurposes, theCityshall ap)rIY customers, less ^ncollectibles. The City shall NOTICE OF PUBLIC INFORMATION Dated September 9, 1997. for such funds and the Grantee will be rerm- provide appropriate information to the Grantee MEETING Elana M. Hamden bursedtotheextentanysuchfundsareactually to allow the Grantee to identify which of its CONCERNING Project No. NH-F-3271 Personal Representative ORDINANCES obtained. customers are located within the corporate lira- (026), Key No. 0688 L. Gorrono, A« orncy at Law, P.i SECTION 4.It shall he lawful (or the its of the City for purposes of paying franchise McCall Alternate Route 637. 105 N. Hayes, Emmett, ID 83617 - Grantee to make all needful or convenient fees. Grantee shall not be responsible for any NoticeisherebygiventhattheIdahoTrans- These notices give the public a look at excavations and/or installations in any of the failure to pay franchise fees which results from portation Department (ITD) will hold a public the enact contents of ordinances local present and future streets, alleys, highways deficiencies in such information provided by rnformation meeting at the Shore Lodge in MISC governments art consideringjor adoption and other public places within the corporate the City. In the event the Ciry annexes a new McCall, between I I a.m. and 7 p.m., Wednes- . in case you have concerns or wish to limits of the City (or the purpose of erecting area into its corporate limits, the terms of this day, October I5, 1997. The meeting will be comment. and maintaining the posts, poles, towers, or Section 9 regarding franchise fees shall not similartoanopenhousewiththepublicinvited STATEMENT OF NONDISCRIM ORDINANCE N0.713 other supports for its wires or for the purpose of laying maintainin and o eratin conduits apply to the annexed area until sixty (60) days l h Ci li h d h G i h to attend any time during those hours. TION "AN ORDINANCE IN ACCORDANCE , g p g , vaults and wires and other conductors under- a ter t e ty as supp rantee w e t e t appropriate information forlhe identification of The purpose of this meeting is to provide information to the public about department Midvale Telephone Exchange, Inc recipient of federal financial assistant WITH IDAHO CODE 50-328, 50-329 AND 50.329A GRANTING A FRANCHISE TO ground for the purpose aforesaid, or to repair and improve such electric power and light [he Grantee's customers within the annexed area projects recently completed or curtently under the Rural Utilities Services, an agent) IDAHOPOWERCOMPANY,ACORPORA- system and to extend the same;proyidedthat . The Grantee'sfmnchisefeepaymentobli- construction in the McCall area. This meeting will also include details about the department's U.S. DepanmentotAgriculuve, and is to the provisionso(TitleVlofthcCivil TION, AND TO [TS SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN when the Grantee or any person ormrporation under the authority of this franchise shall gations hereunder shall commence with the f h G ' f f l bil i plans to proceedwilhtheprotectivebuyingof Act of 1964, as amended, section 5(H AND OPERATE ]N AND UPON THE , disturb any of said streets, alleys, highways or start o t e rantee s irst ul l ng cycle following the effective date of this ordinance; right-of-way for the proposed McCall Alter- note Route roject Protective bu in isa rocess Rehabilitation Act of 1973, as amend A e Discrimination Act of 1975 as an PRESENTANDFUTURESTREETS,HIGH- other public places for the purposesa(oresaid, provided, that the Grantee must first receive p . y p g used to keep the highway location options g , and the rules and regulations of the U WAYS AND OTHER PUBLIC PLACF,S WITHIN THE CORPORATE LIMITS OF he, it or they shall restore the same to 8O°d order and condition as soon as practicable and approval from the Idaho Public Utilities Com- i i f h ll i f h f h open. The protective buyingwill becaniedout panment of Agriculwre which provide THE CITY OF MCCALL, IDAHO, ELEC- without unnecessary delay and failing to do so m ss on or t eco ect on o t ranc ise fee in e the rates charged by Grantee in accordance the Uniform Act and Title V 1 of person in the United States on the basis TRiC UTILITY PROPERTY AND afterfivedays'nolicefrom theCity, orilsduly . SECTION 10. The City shall have the right the Civil Rights Act of 1964. The proposed protective buying will notbias the selection of color, national origin, age, or handicap: excluded from participation in admix FACILITIES FOR SUPPLYING ELECTRIC- I authorized officer or officers, then the City may place said street alley highway or public during the term of this franchise agreement to i f hi h ( h d a preferred construction alternative. , access to, denied the benefits of, or oft CITY,THE NH B T ANTSTHEREOF,AND , , place in suchcondition at the cost andexpense ncrease t e ranc se ee ereun eruptothree percent (3%), by obtaining approval ofamajor- purchase of the property is expected to begin by the end of 1997 The ose of this ur besubjectedtodiscriminationunderam organization's ro r:uns nr activities OTHERS FOR A TERM OF 20 YEARS, IN- CLUDING THE NONEXCLUSIVE RIGHT of the Grantee, and said Grantee will forthwith pay the full cost and expense thereof upon ity of voters of the City voting on the question l i h ld i d i h . p p nonce is to inform the public that ITD has p g . The person responsible for coon TO PHYSICALLY LOCATE AND MAIN- demand of the City. All facilities constructed at an e ect on e n accor ance w t chapter4, title 50 Idaho Code Any such vote to increase selectedapreferred location and is proceeding this organization's nondiscriminationc TAIN TELEPHONE, CABLE, FIBER under this ordinanceshall beplaced and main- , . the franchise fee hereunder shall provide that with design and right-of-way purchase. High- way plans illustrating the proposed alignment ante efforts is Lane R. Williams, presid general manager Any individual or s OPTICS OR OTHER COMMUNICATIONS FACILTTIES;SETTINGFORTHAN AGREE- rained at such places and positions in or upon such publicwaysandpublicplacesasshallnot the increased franchise fee will apply to any l i i id h h are available for inspection at the ITD C~istrict . , class of individuals, who feels that this MENTNOTTOCOMPETE,RESERVING interfere with the passage of traffic and shall c serv e ectr ce prov er (ot er t an the City) who utilizes the City's streets alleys or other 3officeat8150ChindenBlvd.inBoiseandat C zationhassubjectedthemtodiscrim ' POWEROFEMINENTDOMAIN;PROVID- INGFORTHEPAYMENT conformtoallapplicablelaws,rulesandregu- , publicplacestoprovideelectricalservicewithin ityHall inMcCalLConstructionoftheproject has not been scheduled may obtain further in(onnation about t . utesandre ulationzlistedabovefrom g OFFRANCHISE FEES;ANDSPECIFYINGOTHERLIMITA- lotions. SECTIONS.The City shall have the right theCit Burin the term oflhisfranchisea ree- y 8 8 t . The Idaho Transportation Departmentcom- fileawritten complaint with this mrgani TIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID and rivile a to strip and maintain wires for P 8 8 men . SECTION I LTheGranteeshall keepaccu- plies with Title VI of the Civil Rights Act of 1964, which stales, "No person in the United or the Secretary, U.S. Department of A tore Washington D C 20259; . FRANCHISE." its internal communications for its fire, police, airport and other services upop the poles and rate books of account for the collection of the f hi States shall, on the grounds o(race, color, or , , . . Administrator, Rural Utilities Services. BE IT ORDAINED BY THE MAYOR ' a c ~ t a r r r y ranc se fees hereunder and theCity shall have the right to inspect the same at all times durin national on m,beexcluded from anici anon d P c in ton, U.C. 20250. Com taints must 1 g p ANDCOUNCILOFTHECTT YOFMcCALL, G ntee hereunde r, suli e t f o the Rul s and ) g business hours and from time to time audit the in, be denie the benefits o(, or be ubje ad to wi thin IRO days after the alleged disci IDAHO THAT; SECTION LTheCit ofMcCaI1,-daho Y Re ulations of the Idaho Public Utilities Com- 8 mission. The City shall string maintain and , sameforthepurposeofdetermininggrossrev- discrimination under any program or activity receiving federal financial assistance."When Lion. Confidentiality will be maintainer extent possible.It10/9 (hereinafter called the "City") hereby grants to , operate such wires al its own expense, risk and annex under Section 9 above. SECTION 12. The franchise fees paid by IDAHO POWER COMPANY, a corporation, responsibility, and in accordance with all legal the Grantee hereunder will be in lieu of and as and to its successors and assigns (hereinafter called the "Grantee") the right, (subject to the requirements and good engineering practices and in such manner as not to impose an payment fur any tax orfee imposed by the City h G REAL ESTATE REAL ESTATE rights of the City set(orth in Section 14 hereof), y additional expense upon Grantee of Its said on t e rantee by virtue of its status as a public utility including but not limited to taxes fees - privilegeandfranchiseforaperiodo(twenty poles and facilities. Any such wires of the City , , , or charges related to easements franchises (20) years from and after September I I, 1997, shall be subject to interference by the Grantee , , rights-of-way, utility lines and equipment in- however, with the right to amend by mutual only when necessary in the maintenance, op- stallation, maintenance and removal during the L nn McDona ld (208) 382-434F agreement in accordance with Section I5, to erationorrepairo(theGrantee'sownfixtures, term o(this franchise agreement. y construct,maintainandoperateinanduponthe present and future streets, alleys, highways and wires, facilities and appurtenances. SECTION 6 The Grantee shall at all times SECTION 13. The Grantee shall have the PAYETTELAKE-100 ft.fronta a 4bdrm.,46ath,onEas[side..65acre.Grenlvi~ ~ other public places within the corporate limits . indemnify and hold the City, its officers, em- right and privilege, insofar as the City is able to rant the same in a d ith N i l mature penes & woods, very p vate. $675,W0 tf491 LUST LISTED -Fa i il d l h 2 of the City, electric utility property and facili- ployees and agents, harmless from any and all g , ccor ance w at ona Arborist Association standards o(the pruning m yy s ze og ome on +/- acres. 6 bdmt., 3 bath, full t basement 3cargara e.IVewcarpetallowance Barn convenientwoodt:ct rivatt [CE DIRECTORY NEW BUSINESS? Don't wait for the next phone book, let us tell your customers you're here! Ca11634-2123 and place your ad today. ,~ Mnv~sr ~u~ ITV NEED WATER? of all trees which overhang the present and future streets, alleys, highways and other public places within the corporateiimits of the Ciry, 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. How- ever, except in an enrrrgency, uo pruning shall be undertaken without giving the occupant of the adjacent property written or oral notice that such pruning will be performed. SECTION 14. InconsiderationofGrantee's undertaking hereunder as evidenced by its ac- ceptancehereof, the City agrees not toengage in close to McCaII. $269,000 #0548 ~ p LOGHOME-OnlObeau[ifulacres,3bdnn.,26ath,vaulledceilinginlivin roc Barn, garage & hot tub. $z1i9-,0B0 Reduced to $263,W0, owner financin . N.~16 GREAT HOME -Convenient in-town location, 2,500 sq. ft, 4 bdrm., ~ bath, r garage, enclosed hot tub, excellent condition. Great family home. Priced bet market value. $129,500 N539 RIVER EDGE CONDO -Lower unit, close to Shore Lod e & lake. Ideal tveekt •etrv_at. I!4otivarod to =ell. $3'4_x+00 Reduced to $35,000. N4~9 PAYETTE RI VER VIE W -Privacy, wooded, great building site on this I S acres cI to McCall, Williams Creek runs through property. $90,000, owner will finance COHO ESTATE- Creek view lots, wooded yet sunny, CC&Rs. 2.29 acres at $33,! & 2.25 acres at $42,SOO.OWC,15 % down, l0 % int. for 10 years. 7!962, 71961 ~ryh~ry,,,, _634-2100 MCS PROPOSED ORDINANCE N0.713 CITY OF MCCALL "An ordinance in accordance with Idaho ode 50-328, 50,-329 and granting a franchise ,Idaho Power Company, a corporation, and to s successors and assigns, to construct, main- ~in and operate in and upon the present and cure streets, highways and other public places Within the corporate limits of the city of McCall, Iaho, electric utility property and facilities for upplying electricity and electric service to the ity, the inhabitants thereof, and others for a arm of 20 years, including the nonexclusive fight to physically locate and maintain tele- rhone, cable, fiber optics or other communica- ions facilities; setting forth an agreement not o compete, reserving power of eminent do- nain; providing for the payment of franchise Fees; and specifying other limitations, terms tnd conditions governing the exercise of said Franchise" Be it ordained by the mayor and council of the city of McCall, Idaho that; SECTION 1. The City of McCall, Idaho !hereinafter called the "City") hereby grants to IDAHO POWER COMPANY, a corporation, find to its successors and assigns (hereinafter :ailed the "Grantee") the right, (subject to the -fights of the city set forth in section 14 hereof), privilege and franchise for a period of twenty ',20) years from and after ,however, with the right to amend by mutual agreement in accordancewithSection IS,toconstruct,main- tain and operate in and upon the present and future streets, alleys, highways and other pub- lic places within the corporate limits of the City, electric utility property and facilities for supplying electricity to the City, and the inhab- itants thereof, and to persons and corporations beyond the limits of the City, including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics of other communications facilities of the Grantee or other parties, (provided, that Grantee shall com- plywith the City's requirements for cable sys- tem franchises) all 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 agree- ment, upon effective date of the annexation, subject to Section 9 hereof. All such electric utility property and facilifies now maintained by the Grantee within the streets, alleys, high- waysand other public places within the corpo- ratelimits of the City shall be deemed covered by this ordinance as provided herein. SECTION 2. All of the Grantee's electric property and facilities in and upon the present and future streets, alleys, highways and public places within the corporate limits of the City 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 governmen- tal regulations, including all applicable state and federal regulations and all construction standards presently in effect by the Idaho Pub- lic Utilities Commission or adopted by that Commission during the term of this franchise agreement. SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as necessary within the present and future streets, alleys, highways and other public places owned by the City. The City shall have no responsibility for the costs of such relocations. The Grantee shat l bear the cost of relocating its facilities at the City's request, unless the facilities are to be relocated for the benefit of a third party, in which case the third party shall pay the costs of relocation. In the event federal, state or other funds are available in whole or in part for utility relocating purposes, the City shall apply for such funds and the Grantee will be reimbursed to the extent any such funds are actually ob- tained. SECTION 4. It shall be lawful for the Grantee to make all needful or convenient excavations and/or installations in any of the present and future street, alleys, highways and other public places within the corporate limits of the City for the Purpose of erecting and maintaining the posts, poles, towers, or other supports for its wires or for the purpose of laying, maintaining and operating conduits, vaults and wires and other conductors under- ground for the purpose aforesaid, or to repair and improve such electric power and Itght cvcrnm and rn ezrend the same. provided that PUBLIC NOTICES 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. SECTION 5. The City shall have the right and privilege to string and maintain wires for its internal communications for its fire, police, airport and other services upon the poles and other facilities erected and maintained by the Grantee hereunder, subject to the Rules and Regulations of the Idaho Public Utilities Com- mission, 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, op- eration orrepair ofihe Grantee's own fixtures, wires, facilities and appurtenances. SECTION 6. The Grantee shall at all times indemnify and hold the City, its officers, em- ployees and agents, harmless from any and all expenses or liability arising form or by reason of any negligent act or omission of the Grantee, its representatives or employees, in the con- struction, operation or maintenance of any of the Grantee's electric utility property or facili- ties. SECTION 7. Upon acceptance of this fran- chise byGrantee and before Grantee shall have any rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidenc- ing General Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal Injury. Such insurance shall have minimum limits of $ l ,1)00,000 per occurrence. The City of McCall shall be named as an "Additional Named Insured: under Grantee's insurance policy, Should the minimum limits of insurance as set forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act (IdahoCode Section 6-901 et. seq.) or any similar legislation, the Grantee shall be required to provide the City with a new certifi- cate of insurance evidencing the higher limits upon the City's request. SECTION 8. The electric service to be furnished to the public hereunder, and all rates and charges therefor, and all regulation of the Grantee hereunder, shalt at all times be subject to all rules, regulations an Borders that may be lawfully prescribed by the Idaho Public Utili- tiesCommissionorbyanyothergovemmental - authority now or hereafter having jurisdiction over such matters. During the term of this franchise, Grantee shall at all times assure that customers within the City have access to cus- tomerservice form the Grantee as required by the Idaho Public Utilities'Commission. SECTION 9. As compensation for the right, privilege and franchise hereby granted, Grantee agrees to pay to the City on or before the 30th day of January, April, July and October, an amount equivalent to one percent (1%} of Grantee's "gross revenues" for the preceding calendar quarter. For purposes of this Section, "gross revenues" shall mean the amount of money billed by the Grantee For the electricity it sells within the corporate limits of the City to customers, less uncollectibles. The City shall provide appropriate information to the Grantee to allow the Grantee to identify which of its customers are located within the corporate lim- its ofihe City for purposes of paying franchise fees. Grantee shall not be responsible for any failure to pay franchise fees which results from deficiencies in such information provided by the City. In the event the City annexes a new area into its corporate limits, the terms of this Section 9 regarding franchise fees shall not apply to the annexed area until sixty (60) days after the City has supplied the Grantee with appropriate information for the identification of the Grantee's customers within the annexed area. The Grantee's franchise fee payment obli- gations hereunder shall commence with the start of the Grantee's first full billing cycle following the cs'fective date cfthis ordinance; provided, that the Grantee must first receive approval from the Idaho Public Utilities Com- mission forthecollection ofthefranchise fee in the rates charged by Grantee. SECTION 10. The City shall have the right durin¢ the term of this franchise agreement to 9 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 gross revenues under Section 9 above. ' SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including, but not limited to, taxes, fees or charges related to easements, franchises, rights-of-way, utility lines and equipment in- stallation,maintenance and removal during the term of this franchise agreement. 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 standazds, of the pruning of all trees which overhang the present and future streets, alleys, highways and other pub- lic places within the corporate limits of the City, in such a mannerand to such extent as will prevent the branches or limbs or other parts of such trees form touching or interfering with its wires, poles and other fixtures and equipment. However, except in an emergency, no pruning shall be undertaken without giving the occu- pant of the adjacent property written or oral notice that such pruning will be performed. SECTION I4.InconsiderationofGrantee's undertaking hereunder as evidenced by its ac- ceptance hereof, the City agrees not to engage in the business of providing electric service during the life of this franchise or any extension thereof in competition with the Grantee, its successors and assigns; but nothing herein con- tained shall be construed or deemed to prevent the City form exercising at any time any power of eminent domain granted to it under the laws of the State of Idaho. The City shall not grant a franchise to another electric service provider during the term of this franchise agreement unless the electric service provider has re- ceived approval to provide electrical service within the city form the Idaho Public Utilities Commission, and the City has imposed the same franchise fee on the electric service pro- vider onthe electric service provider as paid by the Grantee. SECTION I5. In the event of an amend- ment tothe laws, rules or regulations ofihe City of McCall, the State of Idaho or the Public Utilities 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 herby 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 of Grantee to reopen the agreement pursuant to this section. SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise and grant or any material portions thereof or the failure promptly to perform any of the provi- sionsthereofshallbecause for theforfeiture of this franchise and grant and all rights hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or default; however, this pro- vision shall not prevent the Grantee from sub- mittingsuch question of violation or forfeiture to the appropriate forum (which may include the district court having jurisdiction or the Idaho Public Utilities Commission) for deter- mination. SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification to the City. SECTION l8. The Grantee shall assume the cost of publication of this franchise as such publication is required by law. SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordi- nance, file with the city Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION 20. Inasmuch as the Granteefias constructed and now is maintaining and oQer- ating the electric utility property and facilities in and upon the streets, alleys, highways, and public places in the City, it is hereby adjudged and declared that this ordinance is necessary for the preservation of tht public peace, health and safety, and therefore this ordinance shall take effect on PASSED AND ADOPTED by the Council of the City of McCall this day of , 19 IUAHU I1~AT; SEC'TtON LThe City of McCall, Idaho (hereinafter called the "City") hereby grants to IDAHO POWER COMPANY, a corporation, • ana to its successors and assigns (hereinafter tatted the "Grantee") the right, (subject to the rights of the City set forth in Section 14 hereof), privilege and franchise for a period of twenty (20) years from and after September I I, 1997, however, with the right to amend by mutual agreement in accordance with Section IS, 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 Facili- w~ t~w~a euu Regulations of the Waho Puhl is Utilities Com- mission. The Cily 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 potesandfacilities. Any suchwiresoftheCity shall be subject to interference by the Grantee only when necessary in the maintenance, op- eration orrepair ofthe Grantee's own fixtures, wires, facilities and appurtenances. SECTION 6.The Grantee shall at all times indemnity and hold the City, its officers, em- ployeesand agents, harmless from any and all ICE DIRECTORY NEW BUSINESS? Don't wait for the next phone book, let us tell your customers you're here! Ca11634-2123 and place your ad today. MAY SECURITY Cenudly Monltoned a E Security Systems Monltora F7re. Water, !/eat. Power d+ Brudlary 834-7885 ~~~ 1Yoo ivllvtso to. a stamp Removal New Meadows, Idaho • Ittsurxd • Topping • Trimming • Removal • Backhce Work • Slash Removal • Right-o4Way Work • Stump Gdnding Dan Lisowy 34?-2180 DARK~~MSON PRODUCTIONS HOME & BUSINESS WEB PAGES! INTERNET ADVERTISING! "DON'T LET THE WORLD PASS YOU BY?" CALL NOW! (208) ti34-4550 W W W.DARiC-SON.COM Your Local Log Furniture Manufacturer. Beds, Sofas, Chalra, Tables, Swings, Hand- ralling, l; much morel f~roduetnp quatfty tog furnftun in McCall afnce 1981. t3uy factory dfnect and fowl gaus. Fns dd(uery fn J~9~~ the McCaU ans. NEED WATER? Call the Water Professionals BURNS WELL DRILLING, INC. Froe Estimates 50 Years Experience I-800-922-2464 email drillh2o~camasnet.com HOYT'S PIANOS 'liming, Repair, Restoration Grands • Uprights • Players 19 years experience (208)983.9196 McCall ~ tom Homes Log Horner -Post & Beam Timber Fmme Homes Architectural Designing Custom Kitchens Custom Furniture -Rustic & Mission Traditional Jim & Jeff Hubbard, TeI.JFAx 208-634-2374 P.O. Box 4123, McCall, Idaho 8363,(8 Exclusive represente[ivcs for r~~+ ~-1 0 /LATER/ORS Shop in the comfort ojyour home for custom home fashions. • Custom Window Treatments • Blinds, Shades $ Verticals • Wallcoverings • Carpet, Area Rugs & Vinyl • Furniture 8 More • Complimentary Consultation • Residential 8 Commercial business hours, and from nmc ur time audit the same for the purpose of determining gross rev- enues under Section 9 above. SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including, brit not limited to, taxes, fees or charges related to easements, franchises, rights-nf-way, utility lines and equipment in- stallation, maintenance and removal during the term of this franchise agreement. 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 pruning of all trees which overhang the present and future streets, alleys, highways and other public places within the corporate li mils of the City, in such a manner and to such extent as will prevent the branches or I imbs orother pans of such trees from touching or interfering with its wires, poles and other fixtures and equipment. How- ever,except in an emergency, no pruning shall be undertaken without giving the occupant of the adjacent property written or oral notice that such pruning will be performed. SECTION 14. In considerationofGrantee's undertaking hereunder as evidenced by its ac- ceptancehereof, the City agrees not toengage in thebusiness of providing electric service during the life of this french ire or any extension thereof in competition with the Grantee, itssuccessors and assigns; but nothing herein contained shall beconsauedordeemedtopreventtheCity from exercising at any time any power of eminent domain granted to it under the laws of the State ofldaho. The City shall not grantafranchiseto another electric service provider during the term of this franchise agreement unless the electric service provider has received approval to pro- vide electrical service within the City from the Idaho Public Utilities Commission, and the Cily has imposed tfie same franchise fee on the electric service provider as paid by the Grantee. SECTION 15. In the event of an amend- ment tothe laws, rules or regulations of the City of McCall, the State of Idaho or the Public Utilities 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 ttotice shall be required on the pan of City or Grantee to reopen the agreement pursuant to this section. SECTION 16. Any violation bythe Grantee of the provisions of this ordinance, franchise and grant or any material portions thereof tx the failure promptly to perform any of the provi- sions thereof shall be cause for [he forfeiture of this franchise and grant and al I rights hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or default; however, this pro- vision shall not prevent the Grantee from submitting such question of violation or forfei- ture totheappropriate fomm(whichmay include the district court havingjurisdiction or the Idaho Public Utilities Commission) for determina- tion. SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification to tfie City. SECTION I8. The Crantee shall assume the cost of publication of this franchise as such publication is required by law, SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordi- nance, file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION 20. Inasmuch as the Grantee has constructed and now is maintaining and operat- ingthe electric utility property and facilities in and upon the streets, alleys, highways, and public places in the City, 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 September 1, 1997. PASSED AND ADOPTED by the Council of the City of McCall this) I th day o(Septem- ber, 1997. ,ci,_,,,-,,.. ~,~ ,.u ou~gcncu to ~ i „u buy.. alto ure auegru d~ discrimination under any program or activity tinn~ Contidcntinlity will he nruintaii receiving federal financial assistance." When extent possible. Ill(1/9 REAL ESTATE REAL ESTATE Lynn McDonald (208) 382-439 PAYETTE LAKE -100 ft. frontage, 4 bdrm., 4 bath, on East side..65 acre. Great mature Ames & woods, very p~vate. $675,000 #491 IUST Li3TED -Family sized log home on 2+1- acres. 6 bdrm., 3 bath, to basement, 3 cargaragge. New carpet allowance. Barn, convenien [ wooded priv close to McCall. $269,OIX1 #0548 LOG HO11~ - On 10 beautiful acres, 3 bdrm., 2 bath, vaulted ceiling in living Barn, garage 6r hot tub. $~79{19B Reduced to $263,000, owner financingg #.1 GREAT HOME -Convenient in-town location, 2,500 sq. fG, 4 bdrm., 3 ball garage, enclosed hot tub, excellent condition. Great family home. Priced I market value. $129,500 #539 RIVER EDGE CONDO -Lower unit, close to Shore Lodge & lake. Ideal wee retreat. Motivated to sell. $39;500 Reduced to $35,000. #499 PAYETTE RI VER VIEW -Privacy, wooded, great building site on this 15 acres to McCall, Williams Creek runs through property. $90,00(1, owner will finan COHO ESTATE -Creek view lots, wooded yet sunny, CC&Rs. 2.29 acres at $; & 2.25 acres at $42,500. OWC,15 % down, 10% int. Eor 10 years. #962, #961 ~1/ 634-2100 MIS ~~~• 500 W Lake Street, M sri pge Chisholm Realty McCall, Id service •~• PROPERTY PROSPECTORS The Star-News classified THREE MONTHS section is your largest and best Out of area but in state. ........ $10.1 source of local real estate Out of State ................. .........$13 ~ information. Subscribe today SIX MONTHS to The Star-News! Out of area but in state. ........ $t 8.1 Out of state .................. ........ $22.1 ONE YEAR Out of area but in state. ........ $31.1 Out of state .................. ........ $37.1 I- Name: Address: City: State: Zlp O Three months O Six months O One year Send with payment to The Star-News, Box 985, ~_, ,I,Ee McCall, Idaho 83638. Visa f ~ \~ Mastercard/Discovcrgtadly °'S. accepted. Call (208) 634-2123 EXHIBIT D '~~ IDAHO POWER COMPANY ~~~ BOIS IDAHO 83707 DOUGLAS H. JACKSON Vice President-Retail Services October 10, 1997 To the Honorable Mayor and City Council McCall, Idaho Ladies and Gentlemen: Idaho Power Company, for itself, its successors and assigns, hereby accepts the franchise contained in the ordinance passed by your Honorable Body on the 11th day of September, 1997, entitled: ORDINANCE NO. 713 AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50- 328, 50-329 AND 50-329A GRANTING A 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 McCall, IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE. Telephone (208) 388-2281, Fax (208) 388-6903 and files this, its written acceptance of same. Respectfully, IDAHO POWER COMPANY ~` fl y D. ackson Vice President -Retail Services (CORPORATE SEAL) ATT B ~ ~~ , y Robert W. Stahman Secretary The above acceptance was received in duplicate, and,,one original the eof as duly filed in my office as Recorder of the City of McCall, Idaho, this ~ day of _ , 1997. ~ ~ R o der of McCall, Id (OFFICIAL SEAL) DHJ:mmb -2- ~'~~ IDAHO POWER COMPANY ~~~~ P.O. BOX 70 BOISE, IDAHO 83707 PATRICK A. HARRINGTON Attorney October 13, 1997 Via UPS Cherry Woodbury Acting City Clerk City of McCall 216 E. Park Street McCall, ID 83638 Re: Memorandum of Understanding Dear Ms. Woodbury: Enclosed is one original of the Memorandum of Understanding executed by the City of McCall and Idaho Power Company regarding the installation of underground power lines within the City'srights-of--way. The Memorandum of Understanding is in addition to the McCall franchise documents that were overnight mailed last Friday, October 10~'. Please feel free to call me if there are any questions on the Memorandum of Understanding. Sincerely, c Patrick A. Harringt~ PAH:mmb Enc. c: Kelly Edwards Telephone (208) 388-2878, Faz (208) 388-6936 MEMORANDUM OF UNDERSTANDING This MEMORANDUM OF UNDERSTANDING is entered into on ( 1997, between Idaho Power Company, a corporation of the State of Idaho ("IPCo") and the City of McCall, a municipal corporation of the State of Idaho ("City") WITNESSETH: Whereas, the City desires to promote the installation of underground power lines in the public rights-of--way of the City; and Whereas, IPCo is willing to provide for the installation of underground distribution power lines in the City's rights-of--way, consistent with its standard undergrounding policies, including Rule H, Distribution Line Extensions, or its successor, on file with the Idaho Public Utilities Commission. Now, therefore, in consideration of the mutual covenants set forth herein, IPCo and the City agree as follows: 1. IPCo will notify the City when it plans to construct new overhead distribution power lines or to upgrade or relocate existing overhead distribution power lines within the City's public rights-of--way. "Distribution power lines" will consist of IPCo power lines of 34.5 kV or less. IPCo's notice will identify the new overhead distribution power line to be installed or the existing overhead distribution power line to be upgraded or relocated, and will provide a preliminary estimate of the overhead/underground differential for the distribution power line. The "overheadlunderground differential" will represent the estimated difference in cost between installing the new distribution power line overhead or underground, or between installing the upgraded or relocated distribution power line overhead or underground. The cost of installing upgraded or relocated distribution power lines underground will include any customer facility upgrade costs associated with the underground distribution power line installation. "Customer facility upgrade" costs include the costs incurred for upgrades or replacements of customer electrical facilities which are required to allow the customer's electrical facilities to properly connect with the new underground distribution power line. 2. Idaho Power's preliminary estimate of the overhead/underground differential will include a standard per-foot calculation of IPCo's cost of installing the distribution power line underground, plus a general estimate by a licensed electrician of the cost, if any, of customer facility upgrades. If the City declines to request underground installation of the distribution power line within three (3) months after receiving IPCo's preliminary estimate, the City will reimburse Idaho Power for the cost, if any, of the estimating work provided by the licensed electrician. 3. If the City requests a binding estimate of the overhead/underground differential after receiving IPCo's preliminary estimate, IPCo will develop a binding estimate based on an engineering design of the underground distribution power line installation and a detailed estimate from a licensed electrician of the cost, if any, of customer facility upgrades. If the City declines to request underground installation of the distribution power line within three (3) months after receiving IPCo's binding estimate, the City will reimburse Idaho Power for its engineering design costs in developing the binding estimate, plus the cost, if any, of the detailed estimating work provided by the licensed electrician. 4. If the City requests that IPCo install the distribution power line underground based on the binding estimate, it will pay IPCo the amount of the binding estimate within thirty (30) days after IPCo issues the binding estimate. IPCo will then proceed with the installation of the 2 underground distribution power line. IPCo will have sole authority to determine the design and construction requirements and specifications for the underground distribution power lines and related facilities installed under this Memorandum of Understanding. 5. IPCo's agreement to install underground distribution power lines under the terms of this Memorandum Of Understanding will not apply where: a. IPCo determines in good faith that the installation of the underground distribution power line would not be advisable based on IPCo's electrical system operating requirements; or b. IPCo determines in good faith that there is not satisfactory right- of- way (including any required permits or approvals) available for the installation of the underground distribution power line. 6. In the event that IPCo is required by the City to relocate an underground distribution power line installed under the provisions of this Memorandum of Understanding, the City will reimburse IPCo for any amount by which the cost of relocating the underground distribution power line exceeds the cost of relocating a comparable overhead distribution power line as calculated by IPCo. 7. Except where otherwise expressly provided herein, all of IPCo's actions hereunder related to the installation of underground distribution power lines shall be governed by IPCo's standard undergrounding policies, including Rule H, Distribution Line Extensions, or its successor, on file with the Idaho Public Utilities Commission. 8. References to the "City's rights-of--way" hereunder shall include all streets, alleys and public places owned by the City. Notwithstanding any other provision of this Agreement, 3 Idaho Power expressly agrees that it will not install power lines in public places of the City (including but not limited to parks, squares or golf courses) without the advance written approval of the appropriate agency(ies) or official(s) of the City. 9. This Memorandum Of Understanding is subject to the jurisdiction of the Idaho Public Utilities Commission. CITY OF MCCALL IDAHO POWER COMPANY / ~ 'El,. .r' ~~ ~-- 4 '~~ IDAHO POWER COMPANY -~~ P.0 BOX 70 BOISE, IDAHO 83707 Richard L. Hahn Relicensing Public Relations Manager September 18, 1997 Mr. Jim Henderson Acting City Manager City of McCall Box 986 McCall, Idaho 83638 Dear Mr. Henderson: I am writing in response to your recent telephone conversation with Sharon Wood regarding the franchise agreement between the City of McCall (City) and Idaho Power Company (company). As you know, our company representative Kelly Edwards, who worked with Gary Shimun on the franchise agreement, has recently taken ill. In that regard, Sharon has asked me to work with you in Kelly's absence on the franchise agreement. Per your request, attached are two original copies of the franchise agreement that was recently adopted by the City. This franchise agreement is identical to the agreement that the City considered through the ordinance process, and that was published in the September 4 edition of the Star News, with one exception. The change is on the last page. Specifically, D. H. Jackson's title is now Vice President -Corporate Affairs. Please have the Mayor and City Clerk execute both originals. Record the date of adoption in the space provided and record the same date in Section I. Return both original copies to me for company acceptance and to begin the implementation process. One original will be returned to the City Clerk with our formal acceptance letter. In the interim, the franchise agreement should be published within one month after adoption, in accordance with the attached procedures. call me. I appreciate your assistance with the franchise agreement. If you have any questions, please Sincerely, Attachment Telephone (208) 388-213, Fax (208) 388-6911 e-mail r1h2513@idahopower.com '~~ IDAHO POWER COMPANY ~~~ P.O. BOX 70 BOISE, IDAHO 83707 Richard L. Hahn Relicensing Public Relations Manager September 22, 1997 Mr. Jim Henderson Acting City Manager City of McCall Box 986 McCall, Idaho 83638 Dear Mr. Henderson: I am writing as a follow-up to my September 18 letter to you regarding the McCall Franchise Agreement. As you know, a Memorandum of Understanding (MOU) between the City and company regarding the installation of underground power lines in the public rights-of--way was being considered concurrently with the franchise agreement. Per your request, attached are two original copies of the MOU. This MOU is identical to the MOU that was considered by the City, with one exception. The change is on page one, where the space for the date was changed to allow for writing in the month and day. Please have the Mayor execute both originals and return them to me for company acceptance. I will return one original to you after company acceptance. Again, I appreciate your assistance with the franchise agreement and the MOU. If you have any questions, please call me. Sincerely, Attachment Telephone (208) 388-2513, Fax (208) 388-6911 e-mail r1h2513@idahopower.cona ~PO~R Subject: Procedural Requirements for Passing Franchise Ordinances To: City Officials From: Rich Hahn As the company has been renewing its expired franchise agreements, questions have been raised by City officials regarding the procedural requirements for passing franchise ordinances. The Idaho Code sets out special rules for passing franchise ordinances, and we need to make sure these rules are followed when company franchise ordinances are adopted by the City. The following is a brief discussion of the issue. There aze three primary sections in the Idaho Code that apply to the passage of franchise ordinances: Sections 50-329, 50-901 and SO-902. Section 50-902 is a general section that applies to all municipal ordinances. This section states in part: Ordinances shall be read on three (3) different days, two (2) readings of which may be by title only, and one (1) reading of which shall be in full, unless one-half (%i) plus one (1) of the members of the full council shall dispense with the rule. Apparently, many Idaho cities interpret this section to require only one City Council meeting to pass an ordinance. However, even if only one City Council meeting is required for general ordinances under the language of Section 50-902 above, Section 50-329 requires at least two City Council meetings for franchise ordinances. Section 50-329 provides in part: No ordinance granting a franchise in any City shall be passed on the day of its introduction, nor for thirty (30) days thereafter, nor until such ordinance shall have been published in at least one (1) issue of the official newspaper of the City; Under this language, the City would introduce the franchise ordinance at a City Council meeting, and then pass the ordinance at a separate meeting thirty days or more after the introduction. The ordinance would also have to be published by the City before it is passed. Once a City ordinance has been passed, Section 50-901 requires that all ordinances "shall, before they take effect and within one (1) month after they aze passed be published...". Accordingly, the City's franchise ordinance would not go into effect until it is published, which must occur within one month after passage. The above guidelines indicate the following sequence of events for passing and implementing franchise ordinances in Idaho. The following is a summary of these guidelines: • The City introduces the franchise ordinance and has the first reading thereof. • The City publishes the proposed franchise ordinance before adoption (1st publishing). • The City adopts the franchise ordinance not less than 30 days after it was introduced. • Idaho Power accepts the franchise ordinance. • The City publishes the adopted franchise ordinance within one month after it was passed (2nd publishing). McCALL CITY CLERK October 1, 1997 Richard Hahn Idaho Power PO BOX 70 Boise, Idaho 83707 RE: Franchise Agreement Please find the signed agreement that is now ready for final acceptance by Idaho Power. Both copies are being returned for Idaho Power signatures. As stated in your September letter, one original will be returned to the city of McCall with a formal acceptance letter. Also included are the two originals of the Memorandum Of Understanding. The council acceptance date of September 11th is noted on the first page. The processing of documents is new to me as I have taken on the responsibilities of Acting City Clerk. Thus, I am not sure if that is the date needed which you mentioned in your MOU letter. Thank you for your assistance on completing this matter. Sincerely, ~.9~C1~ Cherry Woodbury Acting City Clerk 216 East Park Street • P.O. Box 1065 • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038 ~~~~ IDAHO POWER COMPANY ~~~~ P.O. BOX 70 BOISE, IDAHO 83707 Richard L. Hahn Relicensing Public Relations Manager September 18, 1997 Mr. Jim Henderson Acting City Manager City of McCall Box 986 McCall, Idaho 83638 Dear Mr. Henderson: I am writing in response to your recent telephone conversation with Sharon Wood regarding the franchise agreement between the City of McCall (City) and Idaho Power Company (company). As you know, our company representative Kelly Edwards, who worked with Gary Shimun on the franchise agreement, has recently taken ill. In that regard, Sharon has asked me to work with you in Kelly's absence on the franchise agreement. Per your request, attached are two original copies of the franchise agreement that was recently adopted by the City. This franchise agreement is identical to the agreement that the City considered through the ordinance process, and that was published in the September 4 edition of the Star News, with one exception. The change is on the last page. Specifically, D. H. Jackson's title is now Vice President -Corporate Affairs. Please have the Mayor and City Clerk execute both originals. Record the date of adoption in the space provided and record the same date in Section 1. Return both original copies to me for company acceptance and to begin the implementation process. One original will be returned to the City Clerk with our formal acceptance letter. In the interim, the franchise agreement should be published within one month after adoption, in accordance with the attached procedures. I appreciate your assistance with the franchise agreement. If you have any questions, please call me. Sincerely, Attachment Telephone (208) 388-213, Fax (208) 388-6911 e-mail r1h2~13@idahopower.com ORDINANCE N0.713 "AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328, SO-329 AND 50-329A GRANTING A 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 McCALL, IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE." BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF McCALL, IDAHO THAT; SECTION 1. 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, (subject to the rights of the City set rth ' Section 14 hereof), privilege and franchise for a period of twenty (20) years from and after ~ti~ l 1 ,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, including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics or other communications facilities of the Grantee or other parties, (provided, that Grantee shall comply with the City's requirements for cable system franchises) all 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, subject to Section 9 hereof. All such electric utility property and facilities now maintained by the Grantee within the streets, alleys, highways and other public places within the corporate limits of the City shall be deemed covered by this ordinance as provided herein. SECTION 2. All of the Grantee's electric property and facilities in and upon the present and future streets, alleys, highways and public places within the corporate limits of the City 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 applicable state and federal regulations and all construction standards presently in effect by the Idaho Public Utilities Commission or adopted by that Commission during the term of this franchise agreement. SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as necessary within the present and future streets, alleys, highways and other public places owned by the City. The City shall have no responsibility for the costs of such relocations. The Grantee shall bear the cost of relocating its facilities at the City's request, unless the facilities are to be relocated for the benefit of a third party, in which case the third party shall pay the costs of relocation. In the event federal, state or other funds are available in whole or in part for utility relocating purposes, the City shall apply for such funds and the Grantee will be reimbursed to the extent any such funds are actually obtained. SECTION 4. It shall be lawful for the Grantee to make all needful or convenient excavations and/or installations in any of the present and future streets, alleys, highways and other public places within the corporate limits of the City for the purpose of erecting and maintaining the posts, poles, towers, 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; provided that when the Grantee or any person or corporation under the authority of this franchise, shall disturb any of said streets, alleys, highways or other public places for the purposes aforesaid, he, it or they 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, highway 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. SECTION 5. The City shall have the right and privilege to string and maintain wires for its internal communications for its fire, police, airport and other services upon the poles and other facilities erected and maintained by the Grantee hereunder, subject to the Rules and Regulations of the Idaho Public Utilities Commission. 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 times indemnify and hold the City, its officers, employees and agents, harmless from any and all expenses or liability arising from or by reason of any negligent actor 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. SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee shall have any rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidencing General Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal Injury. Such insurance shall have minimum limits of $1,000,000 per occurrence. The City of McCall shall be named as an "Additional Named Insured" under Grantee's insurance policy. Should the minimum limits of insurance as set forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any similar legislation, the Grantee shall be required to provide the City with a new Certificate of Insurance evidencing the higher limits upon the City's request. SECTION 8. The electric service to be furnished to the public hereunder, and all rates and charges therefor, and all regulation of the Grantee hereunder, shall at all times be subject to all rules, regulations and orders that may be lawfully prescribed by the Idaho Public Utilities Commission or by any other governmental authority now or hereafter having jurisdiction over such matters. During the term of this franchise, Grantee shall at all times assure that customers within the City have access to customer service from the Grantee as required by the Idaho Public Utilities Commission. SECTION 9. As compensation for the right, privilege and franchise hereby granted, Grantee agrees to pay to the City on or before the 30th day of January, April, July and October, an amount equivalent to one percent (1 %) of Grantee's "gross revenues" for the preceding calendar quarter. For purposes of this Section, "gross revenues" shall mean the amount of money billed by the Grantee for the electricity it sells within the corporate limits of the City to customers, less uncollectibles. The City shall provide appropriate information to the Grantee to allow the Grantee to identify which of its customers are located within the corporate limits of the City for purposes of paying franchise fees. Grantee shall not be responsible for any failure to pay franchise fees which results from deficiencies in such information provided by the City. In the event the City annexes a new area into its corporate limits, the terms of this Section 9 regarding franchise fees shall not apply to the annexed area until sixty (60) days after the City has supplied the Grantee with appropriate information for the identification of the Grantee's customers within the annexed area. The Grantee's franchise fee payment obligations hereunder shall commence with the start of the Grantee's first full billing cycle following the effective date of this ordinance; provided, that the Grantee must first receive approval from the Idaho Public Utilities Commission for the collection of the franchise fee in the rates charged by Grantee. SECTION 10. The City shall have the right during the term of this franchise agreement to increase the franchise fee hereunder up to three percent (3%), by obtaining approval of a majority of voters of the City voting on the question at an election held in accordance with chapter 4, title 50, Idaho Code. Any such vote to increase the franchise fee hereunder shall provide that the increased franchise fee will apply to any electric service provider (other than the City) who utilizes the City's streets, alleys or other public places to provide electrical service within the City, during the term of this franchise agreement. SECTION 11. The Grantee shall keep accurate books of account for the collection of the franchise fees hereunder 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 gross revenues under Section 9 above. SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including, but not limited to, taxes, fees or chazges related to easements, franchises, rights-of- way, utility lines and equipment installation, maintenance and removal during the term of this franchise agreement. 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 pruning of all trees which overhang the present and future streets, alleys, highways and other public places within the corporate limits of the City, 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. However, except in an emergency, no pruning shall be undertaken without giving the occupant of the adjacent property written or oral notice that such pruning will be performed. SECTION 14. In consideration of Grantee's undertaking hereunder as evidenced by its acceptance hereof, the City agrees not to engage in the business of providing electric service during the life of this franchise or any extension thereof in competition with the Grantee, its successors and assigns; but nothing herein contained shall be construed or deemed to prevent the City from exercising at any time any power of eminent domain granted to it under the laws of the State of Idaho. The City shall not grant a franchise to another electric service provider during the term of this franchise agreement unless the electric service provider has received approval to provide electrical service within the City from the Idaho Public Utilities Commission, and the City has imposed the same franchise fee on the electric service provider as paid by the Grantee. 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 Utilities 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. SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise and grant or any material portions thereof or the failure promptly to perform any of the provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or default; however, this provision shall not prevent the Grantee from submitting such question of violation or forfeiture to the appropriate forum (which may include the district court having jurisdiction or the Idaho Public Utilities Commission) for determination. SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification to the City. SECTION 18. The Grantee shall assume the cost of publication of this franchise as such publication is required by law. SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION 20. Inasmuch as the Grantee has constructed and now is maintaining and operating the electric utility property and facilities in and upon the streets, alleys, highways, and public places in the City, 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 P SSED AND ,ADOPTED by the Council of the City of McCall this ~ da of Y APPROVED by the Mayor this _~ day of ~ ~/ , 19~. ATTEST: ' I%l~ ~~~ , Mayor City Clerk C~ (Seal) ACCEPTANCE IDAHO POWER COMPANY, as the franchisee, accepts the franchise set forth in the above Ordinance and agrees to abide by the terms and conditions thereof. DATED this day of , 19 ATTEST: By: D. H. Jackson Vice President -Corporate Affairs Secretary (Seal) ~ ~ ~ . ~ • Stan Craven McCall District Manager P.O. Box 904 McCall, Idaho 83638 (208)634-2116 February 10, 1995 Mr. Gary Shimun McCall City Manager P.O. Box 1065 McCall, Idaho 83638 Dear Mr. Shimun: I am writing in response to your January 18, 1995, letter. Your letter requests certain information from Idaho Power, which the following is intended to address. For the year 1994, Idaho Power received approximately $2,164,399 in revenue from all customers located within the McCall city limits. Regarding your request for projected revenues for the next few years, the Company defers that projection to the City of McCall, based on the City's projections of growth for future years. The Company agrees with your assessment regarding our interest in establishing a fair and equitable franchise agreement with the City. It is also our desire that a franchise agreement be satisfactory to both the Company and the City. The Company initially provided the City with a copy of our standard Idaho franchise agreement, and subsequently offered comments on the draft franchise agreement presented by the City. It is our hope that a franchise agreement can be reached consistent with these Idaho Power proposals. However, we should point out that if the City desires to include franchise fees in an Idaho Power franchise agreement, this issue should be deferred fir ti:e time bei;;g. You are probably aware that a bill is before the Idaho Legislature addressing utility franchises and, specifically, franchise fees. A coalition of utilities is supporting House Bill 153, which would clarify and further define the issue of utility franchise fees. Should the bill pass and be signed in to law, the provisions contained within the bill will provide significant guidance to the utilities and cities regarding future franchise agreements. It is, therefore, the opinion of the Company that pending the outcome of the legislative effort, it is premature for the Company and the City to address franchise fees in a new franchise agreement. The Company is, however, interested in continuing the discussions with the City on renewing the expired Franchise agreement as we have previously proposed. We would also be willing to consider a shorter term, such as five years, for such a franchise agreement. If this is not possible, once the final status of House Bill 153 is known, the Company will be very interested in resuming negotiations with the City on the franchise agreement. For many years, Idaho Power has had a good working relationship with the City of McCall. It is the Company's intention to continue this relationship, and also cooperate where appropriate on projects that are required to provide electric service to the citizens of McCall. In that regard, the Company will continue to secure permits from the City, as currently required, to complete projects within the municipal boundaries. I will also inform you about other large projects that do not currently require a permit from the City. In this regard, it is important to recognize that Idaho Power is obligated to provide service to its customers under the Certificate of Convenience and Necessity granted by the Idaho Public Utilities Commission. I am hopeful the City's current permit and approval process will not change significantly and result in delays to the Company's ability to fulfill the obligation to serve its customers. In the meantime, if all currently required permits are secured, it is the Company's intention to proceed with these projects as we have in the past. I hope this information is helpful to you. If you have any questions or would like to have further information regarding the Company's comments, please call me. Sincerely, ~ ~'~-~=~ THE CITY OF MCCALL POST OFFICE BOX 1 Ohs • McCAL.I_, IDAHO 83638 • (208) 634-7142 • Fax: (208) 634-3038 January 18, 1995 Mr. Stan Craven District Manager Idaho Power Company Poet Office Box 70 Boise, Idaho 83707 Dear Mr. Craven: Tlie City of McCall is continuing its efforts to redraft a franchise agreement with your company. At this point, we need income projections from you for your customers within the City. It would be very helpful if you could give us the actual revenue {figures your company received from McCall City customera last year, along with projected revenue for the next one to two years. We htnow that you are just as interested in establishing a fair and equitable franchise agreement as we are, so I would li>ze to thanlz you in advance for your cooperation in providing this information in a timely manner. I loolz forward to continued cooperation with you an all projects within the City. With that in mind, I would lilze to remind you that without an agreement, City Council would lihze to review all plans you leave for any worhz within the City prior to your commencement. I am certain that this review will be conducted in a timely manner, as regular City Council business permits. Thanhx you once again for your help. Sincerely, Gary P. Slimun City Manager GPS/ge ec: Ted Burton, City Attorney Scott McDonald, AIC ~~'~ IDAHO POWER COMPANY =~~~ P.O. BOX 70 BOISE, IDAHO 83707 STAN CRAVEN District Manager November 2, 1994 Gary P. Shimun City Manager City of McCall 216 East Park Street P.O. Box 1065 McCall, ID 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 finalized 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: e i n 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 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. e n 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 -2- Idaho Power's transfer of its state of incorporation from Maine to Idaho in 1989, under the language of Section 13). Your October 13, 19941etter 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. Please call me at (208) 324-2993 if you would like to discuss this matter further. Sincerely, -,~ ,-_ Stan Craven SC:mmb -3- ORDINANCE NO. "AN ORDINANCE IN ACCORDANCE WITH IDl~HO CODE SO-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 OFM("(;AT,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 PAY?UrNT TO THE CITY OF COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID PRANCHISE." BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCCALL , IDAHO, THAT: SECTION 1. 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 fl0) years from and after January 1, 1995 , 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. ~EC'TIQN 3. IIpon 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 !or 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 saintain wires for its municipal police and fire alarm systems upon the poles and other facilities erected and aaintained 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. l~-ny 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 age s, harmless from any and all claims, causes of action, expense or liability arising Z out of, or in any way connected with the construction, operation or saintenance 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 claiss 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 say 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 setters. 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. i~lhan 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 say designate, at such time and in such manner as say be necessary reasonably to accoaodate 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. ~s 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 tern "Gross Revenues• as used herein shall mean and be construed to be the amount of money actually collected frog 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 pity detersines 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 3 all lees and interest due and an additional penalty of 25~ of the total amount owed. Such franchise fee say ba 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 sase at all tines during business hours, and from time to time audit the sass 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 frog paying the usual and normal real and personal property taxes to any and all taxing bodies within the boundaries of which the Grantee !unctions, 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 stateaent from Grantee. ~ECTiON 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 nay 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 stational 1~-rboust Association standards, of the trimsing of all trees which o~vernanq the streets or public places in such a manner and to such extent as will prevent the branches or lisbs 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 a"d 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 Bain~a in and operate a systea for the distribution of electricity in the Cfty 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 stores, 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 amendeent 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 tares of this franchise and the rights and privileges hereby conferred may be changed, altered, amended or modified upon actual 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 (~5) 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 say 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 ordtr Eros 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 Ju1v 1, 199 , it is hereby adjudged and declared that this ordinance is necessary for the preservation of the public peace, healthy and safety, and therefore this ordinance shall take effect on January 1, 1995. 5 IDAHO POWER COMPANY T"'RD REVISED SHtt~ nu. cic CANCELS I P U C NO 25 TARIFF NO 101 SECOND REVISED SHEET N0. 27E SCHEDULE N0. 71 IDAHO PUBLIC UTILITIES C0~/~~i!SSION OVERHEAD AND UNDERGROUND APPROVED EFFECTfVE DISTRIBUTION LINE EXTENSIONS SUN 14 ~91 ~~(~ 1 -'y] (cont) VIII. REFUNDS (Continued) ~~~~5-f~""- -d~ SECRETARY 4. If the Extension Allowance of an Additional Applicant covers all applicable payments and still has a remaining balance, that surplus will be refunded among Vested Interest holders on a Connected Load basis until the surplus is exhausted or all Vested Interests are fully refunded. 5. Vested Interest refund payments may be waived by notifying the Company in writing. C. Refund Limitations 1. Refunds will only be made for connections during the first five ears 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 under this paragraph, a Local Improvement District will be provided service under the general terms of this tariff schedule. Tie,-Company.will provide a cost estimate_.and feasibility study fora local Improvement; ~Di~trict'.:within 120 -days after.:, receiving the. resoaution=from ~~the ` requestng:goveirning: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. Thes'ybverriingy=body~;_ssuing the,;,reso~uton,~V~:aa~~a~y~.r~the Companyil; for,-, .the ::costs .-o,f_ pr..epafr. ~g .the 4„cost.~>:.estifa~a~~: ar1~ ~ i=ea;~~.baf~ ~+ ~` "dye regardless, of whether..the .Line.,Extension.or..the~Convers ion`<acxua~„~ywtakes~,place 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" ac'tuah cost -is less than- the estimated=>cost,e_~the>:Local Improvement District will ..:pay_. the .,actual cost: `If: theactual ~;~ost ,,~exceeds,.ahe estimated=-cost, ;the.,;Local ,Improvement Dstrict.-wi.11.-..pay ,onlyLL;t~ie.est~imated~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. Issued - May 20, 1991 Effective - July 1, 1991 D. H. Jackson, Vice President, Distribution 1220 Idaho Street, Boise, Idaho ~~OL~AT/O " \ Q' ~' Q~ `s.~~ n IO d.,. ' ..... 'e.` ~~ \yo c~~/ November 3, 1994 Association of Idaho Cities 3314 Grace Street, Boise, Idaho 83703 Telephone (208) 344-8594 Fax (208) 344-8677 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 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 Boolh Counc i Imember. Orofino Tad Freeman House Mayor, Cascade Ban Westberg Councilmember. Weiser Maz Yerrington Councilmember. Meridian Ted Ellis Mayor. Garden City Chuck Geska Councilmember. Buhl David Adair Mayor. Gooding Gregon Anderson Councilmember, Pocatello 1. Walter Ross Mayor. Preston John Walker Mayor. Challis James Flamm Councilmember, Rexburg ACTIVE PAST PRESIDENTS Dixie Reid Councilmember, Coeur d'Alene Gram Kingsford 'Nacor. Meridian Harold Sims Mayor. Bonners Ferry John O. Cotant. Jr Mayor. Chubbuck Tim Ridinger Mayor. Shoshone Panted on Recycled Paper }~ /GIAT/~" \ Q ~~ ~~ ,~ ~.,.: '~t,: i i.,, ~, .~. ~ 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 anon-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. .3 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. 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 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 rernoU~ apply for and receive all permits as may be required by the City wo~,~v 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 l~h~ heat, power and electric ~ energy consumed during the preceding quarter within the corporate C,~,o~ 2 limits of the City. All sums which become delinquent shall ~v~"~ accumulate interest at the statutory rate provided in Idaho Code de(~n,{~~,y 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 3 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. -~ i~l~ 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 ~~(ahv notice of the date, time and place of the public hearing. The City (-bwey 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 rt~,e district court having jurisdiction compelling grantee to comply ~~0 "- with the provisions of the franchise and recover damages and costs !a ~~ 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 /~~ 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 Mayor ATTEST: 6 /C,1 AT/~'~ '.' Q ~~ Association of Idaho Cities ;.' 3314 Grace Street, Boise, Idaho 83703 `•~~~..`~ ~ Telephone (208) 344-8594 ~~ ~.,, - ., ~ ~h Fax (208) 344-8677 \y~ G~~~ M E M O R A N D U M 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 'mit 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 Vice President Winston Goering Mayor Nampa Second Vice President Kirk Hansen Mayor. Soda Springs Third Vitt President Brent Coles Mayor, Boise Legislative Chairperson Paula Fomey Councilmember, Boix Executive Director Scott B. McDonald Immediate Past President Karen McGee Councilmember. Pocatello DIRECTORS James Hammond Mayor. Post Falls Susanlohnson Coundlmemtxr.Sandpoint Loveua Eisele Councilmember. Lewiston Laura Booth Counc ilmember. Orofino Tad Freeman House Islavor. Cascade Ban Westberg Counciimember, Weiser Mas Yerrington Councilmember. Meridian Ted Ellis Mayor. Garden City Chuck Geska Councilmember, Buhl David Adair Mayor, Gooding Gregnn Anderson Councilmember. Pocatello 1. Walter Ross Mayor Preston John Walker Mayor. Challis James Flamm Councilmemlxr. Rexburg ACTIVE PAST PRESIDENTS Dixie Reid Councilmember. Coeur d'Alene Gram Kingsford 9lacor. Meridian Harold Sims 1fa~or. Bonners Ferry John O. Cotant. Jr. S1as or. Chubbuck Tim Ridinger Mayor. Shoshone _,__ S Pnnted on RecyGed Paper Idaho Power Legislative Goals re: Franchise Fees - electrical utility franchise fees mu majority of the city residents voting in an - the fees shall not exceed 3 percent collected by city. an electrical utility from its - Idaho Public Utilities Co all electrical utility franchise before they become effective. - The term of the franchise utility and the city shall not be than 50 years. st be approved by a election. of the revenues customers within a mmission shall review and approve agreements which include fees agreement between the electrical less than 20 years nor more 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. i ~H i~parta~rt 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 Bulk Rote Certified Public Accovntont: U. S. POSTAGE P. O. Box 446 P A I D Nampo, Idoho 83651 Permit No. 11 NAMPA, IDAHO E11RNESTTTE ~TARR NAMPATIOAHO N8365t PostsQ• No will b~ Paid PO~e starry Necessary by If Mailed !n the Addressee United States BUSINESS REPLY CARD Flat Ctoss Permit No. 41 Nompo, Idoho SEVERN, RIPLEY, DOORN & HANSON ~4,~ Certified Public Accountants P.O. Box 446 ~~ Nampa, Idaho 83651 IOr:c 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 molter 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 on 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 1. 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 °~6 . 4. You would not hove the opportunity to vote on whether you wish to pay the tax. 5. 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 X1,300 annually and the bills of Nampa public schools, already burdened by high budgets, would be increased substontiolly. 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 :low Nampa's economic growth and deprive it of additional payrolls and property taxes. 8. Nampo 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 moil it promptly. In order to assure an impartial survey, we have employed the Nampa certified public accounting firm of Severn, Ripley, Doorn ~ Hanson to conduct it and tabulate the results. Thank you. Very truly yours, George L. Elliott Nampa District Manager Here's My Unofficial Vote Aa on Idaho Power Company antomer living within the City of Nampa, do you favor the proposed 3 °,L electric franchise tax? ^ YES ^ NO NO POSTAGE IS REQUIRED. Plea:e 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 ffre 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. WHOPAYSFEES? 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. ABILITYTO PAYFEES A charge added to consumption of a product with the ability to apply conservation practices to reduce the amount of fees. 3. EASE OF ADMINISTRATION Pay monthly with utility 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 Fower 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 chazge a fee in the future. I. WHOPAYSTAXES? Only property owners, those living in the city and using city services as well as absentee property owners who do not use city services, pay property taxes. There aze a multitude of governmental entities and charitable organiza- tionswho are exempt from paying any property taxes who benefit from city services. These entities and organizations would be required to pay a franchise fee as part of their electrical bill. 2. ABILITY TO PAY 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 cant' on their function. Utilities want city snow plows io be able to access downed utility lines due to inclement weather to restore services. /G-AT/O\ ~~" ,~. h ~- O Q '~ ~ .~.~ ,~ ~ . ~i~ i.., ~ . ~h \y0 G~~~ Association of Idaho Cities 3314 Grace Street, Boise, Idaho 83703 Telephone (208) 344-8594 PRESS RELEASE FOR I A RELEASE Contact: Scott McDonald October 5, 1995 344-8594 Electrical rainchise Fees vs Property Tax 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 3% Bloomington 10% DuBois 10% Rigby 3% Rexburg 6% (up from 2% as of 10/1/94) Iona 3% Ririe 3% ### v~~ IDAHO POWER COMPANY Idaho Power Information Sheet - ~~~ BOISEO DAHO 83707 , • • Utll~ty Franchise Fees Q: What is a franchise? Q: How would customers' voices A: Municipal franchises authorize utilities or other be heard? service providers to utilize a city's streets and alleys for the location of equipment and facilities. l:n Idaho Power's case, this pertains to the electrical equipment necessary to provide an essential service. Franchise agreements may also restrict the city's right to compete with a utility's service to city residents. Franchises don't grant Idaho Power the right to serve customers. The Idaho Public Utilities Commission grants that right. Q: What is a franchise fee? A: Ii'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 law, cities are not authorized to impose franchise fees on electric 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 utility'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 running the revenues over to the city. A: Idaho Power supports providing all city resi- dents an opporuutiry to vote on franchise fees at a public election. No fiattchisc fee should be imposed upon an electric utility's customers without majority approval. Q: Specifically, what conditions does Idaho Power believe are necessary? A: Idaho Power would not oppose changes tostate law governing franchise foes if 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 electric utility bill. • The fees shall not exceed 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 and approve all electric utility franchise agree- ments which include fees before they become effective. • The term of the franchise agreement betwcen the electric utility and the city shall not be less than 20 nor more than 50 years. Absent a change to state law, Idaho Powu would be willing to consider a franc}:ise 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? Q: Does Idaho Power oppose franchise fees? A: Under certain arms and conditions, Idaho Power would not oppose franchise fees. Chief among them is a pro- vision to allow customers a void in the imposition of such fees. A: Idaho Power encourages all of its customers to team as much as possible about the issue and share their thoughts and concerns with their locai 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. i d R D t N A N C E N 0. _~Q~ , ~ '' ! AN ORDINANCE GRANTING, A NONEXCLUSIVE PRANCHISE Te I15AHit 4owER COMPANY, A CORPORATION, AND Y'0 STS SUCCESSORS ANb ASSIr,Ng, fid CONSTRUCT; MAINTAIN AND ' r OPERATE IN AND UPON T}1F. PRESENT AND FUTURE STREETS; HIGHWAYS AI;D OTH$R Pl18LIC ' • PLACES gITFIIt: THE CORPORATE LIHIT5 O~.THE CI'T'Y C1E` PAYETI'Er IUAHO; ELECTRIC UTILITY PROPERTY AND FACfi,ITIF.S I:OR SUPPLYING .RL$C~'RICIi'1~ AND ELECI'RfC SERVICE , TO THE CITY, THE INHA$IY'ANTS THEREOF; AND OTHERS ~~ X 4~ERta OF FIFTY yt;ARS: • SU>SJECTiNG SUCH ELECTRIC §ERVICE TO REdUtr1'iIDN >;Y fUgLIE AUfiH0RfT1'1 Rf:V(1KINC PRIOR I'RANCHISE ORDINANCR; ANO sPEcfPYfNC oTUEa I.tI~ITAfiioNS, TERMS AND GUN- ' DITIOHS GoVEIWING THE EXERCISR OP•SAI$ InU-NCHfSE: - •' t 8e ft ordained Ay the Mayor and Crsueafi of Ehe City of Payltta°, • Payette County} ldahtl, that: _ ' SeeEion is 'Fh!#! is hereby !#aetld to ldehe Pe+vef ~drnpafty, !ta Auceb§ROi'ffi and eeaiRfte (heron eaiied tli! ~lliit!!) a Wort-exclubive right; privilege et ffafi~chiae ufltil ~, 'r, -S~~p,2p ':.:" t t6 E6nstfutE} fn8intaiit !rid operate in th! prlalrit end future Ktr!lta, a ega~'e11d ¢UbilE piatbs ifl they ' "City of Payette; Payette Cbuftty; Idaho; Afid !Ef auftlaldrts; eleetriE light end ptlver iines, tagethet aith aii th! AltealAf~ eP•~!li~tbl! a~~uttlfiantea tir~- ~, eiudiftg undergraurid eaflduita; palef, toaeea; 1~itea,' l~l~eftftniaeiafl liHpa and teflgraph grid Eeiephtlri! lines far ire 61~fl ual~} ~6! ENE purpbe! of "aDisp]yinR ' eiectticity to said city; the irihebiteflta tfie#ebf•f118 petaefta attd tdrp5ratitlns beyond the limit! tfitrlof, for light, heaE} parer ~i+A ethr:r purpaseb~• i • ~ - • Sectitln 2, Polea efld tcwera shall 6! eeflaEfuetld.lll a Raod and aubatafttiei` IAanft!!, grid viii be as stetted of ritlt t~"intltfer! with travel ' or ordinary uae tlf streets and eillyg nor be 1fl viaiatien faith the gtribrai -, 6rdinancea,tlf the City bf Payette; Idaho. 1'h!"i>statien of poles. rebels grid . ~ tariddita al;aii be fi>ted under th! aupefviaiae af. Eh! City Cauricii tlf the City, ' • -buE Clot ao as t8 ifltll`i`!re ~flrleabnably bitk Ehl. b!lljlL+! b}slratitift of thrs Ii - _. "' Gtaht!!`a lima: ~ . -'~•~'~' _ i ~` "~~ ~ Slbtidri 3~ Th! ~'f8t1t!! ahail 18dltnnify end aav!'~fs! City harMieaa Elam any ~ eftd all !>Eplna! tlr liability Mkirh ~3y,iEti:ue to it bq f!$aon tlf the rilgligehe! s! }Ai:lc6>1dueE of th! CtafltE! ie EA! caflatruction; ~speratian ~ br mainteaent! tli ita ey4teid hlreufldlf: ~; _ ' Sectioft 4+ fih! City ahail hay! th!'~f!! #I{~AE Afld priviiere to atrirtk and ieaifltain wires feP its tsuHitipai pb1fE>E aria fire aia#~ aygtetts upoh the ppile aftd athlf tati.liEilf Bier;tld ahd,lAAiAE[irild by th! Gra6tle ,. herein, ~ .. :t . ,1.;:• %;~, • sectitlfl i:• ,I`h! Cil9 of PayEtt! a,ei..a>_""""ttl~'~~u~!!f!'Rftg' itopos! A franchise ! • • "Eait;~~E!•e# chlrge Eet,th! iielfite'~#'liiiilR! and franchise granted herein, _ ~~ ~- .- ~•. . ~` ~';~. ~ ~ ~"~ ', _ ScCtioh•b:" fhat~ERia f#anEMiAt~r~e•y bd !lubkf~'!i}~ !lflEihated by the City bf PaglEte,' Idahtl !41 th! l3EftE ~N~E`=tfi! ~UrariEpe hetllb fa31s Eo ,. uae dl~iReflerr; te_aappl~ thl:L~lE~ sect ire.i~ha61ta1~E^!I,•'M'1Eh*>~~+~nii~llectricai • Saetiofl,3r.:fihia ",flgkt~; ~~rit~iildl.Aft~ ~t~at;ehiae ~aaEld hbrEin aht71 be • - aubjeet Ee Ehanp! afid >1lddificatiafi•9~.:~eila and keguidtioris of the idahn stet! pubiiE Uti1iE!!a:'cb~lnlaaie~~afid b~`"daha,State stetuEe4. slctioft $: ~'h! tl~aatel ihail~~fflt f3iE1i'~t~!' ~ilji".~ilrk ari acctptanc! lit '~ 1al:iEiri(~ of tAia fterichia>s, d11 raE lslfe#! thirty dfys af.tee the ; -- ~ -ftisgi-~fufsaagl-'pEf!'of +.~ y - r-- .r..r.r ;:....:.;, ~ ..iw - - - . Berrien ~, 'f'hiA~tftrlltiallt'EC~~~RAailyta~tl~•L~~E~~~11i~E1J ~3aeaA~ke;` iphfb~al by the I~a'b#~'a!!lpEYr'Ilt! 6'1?.EHrs'[ltlRE~l, 1!lEElhi and pu611EAEion aithitt oti! inbfith a~E!! itb ~Afaaga~ `' t '$ .;- ,~ ~ ~.. _ ~... .. r .. .. t_~ •; 1~ ..~ • ,1' ~ jj _ _ • ^. ~ -' L~ .`tY • Section lU. The Grantee haA constructed gtid nb~s is tfiaintaininq operating electric utility ptopetty and facilities in and upon the • streets, alleys; avenues. hichways, boulevatds; thotout~hfates and public places in the City under a franchise Gtdinarite Nti._'~$4_;~which will expire on ~~,_____ ~, 1980_, and both the Gt~Ihtee and the City desire to revoke ordinance Vo. ;f84_ Effective A~ of the end of the day ort August -`- _ 5 , 1930_; end•fo have Eha new franchise ba !n fdre@ and affect on ~~~_ _ ~, 1930_. It !~ hat•pb~ ~~3i~d~ed efid declgred•thAt thii3 di=dinance is necessary for the immediate pte3erv~ltio~l df Ehe }~ublic paacp,:h~alth and safety, and franchise Ordinance ~IO: 3$4 i9 i`~iiok~d ate $f--~1~~M; ••_~ ___ ~~, 1930 and ti~is ordinance shall Eake effect end be.ln full force and effect upon ..August---- --~-~ 19~Q_. , Passed by the City Co~itril df the City of p~yette, Pavette.County, .Idaho, on the ~~~ day bf _~~~ __-, 1970. . ", ~ • .. Mayor of t e Clty of ayette, IdahS ` ~a • :. h'ITNES5: • Clerk of the City of ayette; Idaho _ ~. • .. t _ ;m • :,.:. . • .,, ,,:: Form B (Additional Insured) ASSOCIATED ELECTRIC 8~ GAS INSURANCE SERVICES LIMITED Hamilton, Bermuda CERTIFICATE OF INSURANCE (Excess Liability) This Certificate is furnished to the Certificate Holder named below as a matter of information only. Neither this Certificate nor the issuance hereof modifies the policy of insurance identified below (the "Policy") in any manner. The Policy terms are solely as stated in the Policy or in any endorsement thereto. Any amendment, change or extension of the Policy can only be effected by a specific endorsement issued by the Company and attached to the Policy. The undersigned hereby certifies that the Policy has been issued by Associated Electric & Gas {nsurance Services Limited (the "Company") to the Named Insured identified below for the coverage described and for the policy period specified. Notwithstanding any requirements, terms or conditions of any contract or other document with respect to which this Certificate may be issued or to which it may pertain, the insurance afforded by the Policy is subject to all of the terms of the Policy. Certificate Number: No. 58462 NAME OF INSURED: Idaho Power Company PRINCIPAL ADDRESS: PO Box 70, Boise ID 83707-0070 POLICY NUMBER: X0167A1 A97 POLICY From: 07/15/97 PERIOD: To: 07/15/00 RETROACTIVE DATE DESCRIPTION OF COVERAGE: LIMIT OF LIABILITY 07/15/86 Claims-First-Made Excess Liability Policy covering claims for Bodily Injury, Property Damage and Personal injury arising from the operations described below. 1,000,000 per occurrence and in the aggregate, where applicable ADDITIONAL The Certificate Holder is an additional Insured under the Policy but only (i) to such INSURED: extent and for such Limits of Liability (subject always to the terms and Limits of Liability of the Policy) as the Named Insured has agreed to provide insurance for the Certificate Holder under the following contract: Regarding franchise agreement between City of McCall and Idaho Power Company and (ii) with respect to the following operations: A!I eperations performed by Idaho Power Company Should the Policy be cancelled, assigned or changed in a manner that is materially adverse to the Insureds) under the Policy, the undersigned will endeavor to give 30 days advance written notice thereof to the Certificate Holder, but failure to give such notice will impose no obligation or liability of any kind upon the Company, the undersigned or any agent or representative of either. DATE: October 22, 1997 ISSUED TO: City of McCall ("Certificate Holder") ADDRESS: Attn: City Clerk 216 East Park Street AEGIS INSURANCE SERVICES, INC. McCall, Idaho 83638 This contract is issued pursuant to the Idaho Insurance ~ ' Laws by an insurer neither licensed by nor under the Bar. 1 - jurisdiction of the Idaho Department of Insurance. License No. ~saso. At Jersey City, New Jersey soot ~sis~> .•... ~dBER 1997 PRE?ARE tr!"R RDG CYCLE I MTR RTS DATE ----- I ------- ------- O1 1 10/16 10/22 02 I 10/17 10/23 03 ~ 10/20 10/24 04 1 10/21 10/27 OS ~ 10/22 10/28 1 06 1 10/23 10/29 07 1 10/24 10/30 08 1 10/27 10/31 O9 1 10/28 11/03 10 I 10/29 11/04 1 11 I 10/30 11/OS 12 1 10/31 11/06 13 1 11/03 11/07 14 1 11/04 11/10 15 1 11/OS 11/12 I 16 1 11/06 11/13 17 1 11/07 11/14 18 1 11/07 pll/15 19 1 11/10 11/17 20 I 11/.12 11/18 I 21 1 11/13 11/19 I FILLING DATE 10/24 10/27 10/28 10/29 10/30 10/31 11/03 11/04 11/O5 11/06 11/07 11/10 11/12 11/13 11/14 11/17 11/18 11/19 11/20 11/21 11/24 MAIL BILLS 10/27 10/28 10/29 10/30 10/31 11/03 11/04 11/OS 11/06 11/07 11/10 11/12 11/13 11/14 11/17 11/18 11/19 11/20 11/21 11/24 11/25 (PAST) PREPARE MAIL DUE NOTICE NOTIC£ 11/10 11/12 11/13 11/12 11/13 11/14 11/12 11/13 11/14 11/13 11/14 11/17 11/14 11/17 11/18 11/17 11/18 11/19 11/18 11/19 11/20 11/19 11/20 11/21 11/20 11/21 11/24 11/21 11/24 11/25 11/24 11/2s 11/26 11/25 11/26 11/28 11/28 12/01 12/02 12/01 12/02 12/03 12/02 12/03 12/04 12/02 12/03 12/04 12/03 12/04 12/05 12/04 12/05 12/08 12/05 12/08 12/09 12/08 12/09 12/10 12/09 12/10 12/11 FINAL DELINQ DATE REPORT 11/20 11/25 11/21 11/26 11/24 11/28 11/2s 12/01 11/2s 12/02 11/26 12/03 11/28 12/05 12/01 12/08 12/02 12/09 12/03 12/10 12/04 12/111 12/05 12/151 12/09 12/161 12/10 12/171 12/11 12/181 12/11 12/191 12/12 12/221 12/15 12/231 12/16 12/261 12/17 12/291 12/18 12/311 DECEMBER 1997 ~ PREPARE MTR RDG BILLING MAIL (PAST) PREPARE MAIL FINAL DELINQ I CYCLE I MTR RTS DATE DATE BILLS DUE NOTICE NOTICE DATE REPORT I ~ ------- ------' ------- --'---- '------ ------' ------- ------- ------- I O1 1 11/14 11/20 11/25 11/26 12/10 12/11 12/12 12/19 01/02 1 02 I 11/17 11/21 11/26 11/28 12/11 12/I2 12/15 12/22 O1/OS ( 03 I 11/18 11/24 11/28 12/01 12/15 12/16 12/17 12/24 01/06 I 04 ~ 11/19 11/25 12/01 12/02 12/16 12/17 12/18 12/26 01/07 I Os 1 11/20 11/26 12/02 12/03 12/17 12/18 12/19 12/29 01/08 1 I i 06 I 11/21 11/28 12/03 12/04 12/18 12/19 12/22 12/30 01/09 I 07 1 11/24 12/01 12/05 12/08 12/22 12/23 12/24 12/31 O1/10' I oe I u/zs lz/o2 lz/oe lz/o9 lz/z3 12/24 12/26 01/02 0l/12 1 09 ~ 11/26 12/03 12/09 12/10 12/24 12/26 12/29 O1/OS 01/13 1 10 1 11/28 12/04 12/10 12/11 12/26 12/29 12/30 01/06 01/14 ( I I 11 I 12/01 12/05 12/11 12/12 12/29 12/30 12/31 01/07 O1/15 1 lz ~ 12/02 lz/os lz/ls 12/16 lz/3o 12/31 o1/oz of/oa of/16 1 13 I 12/03 12/09 12/16 12/17 12/31 01/02 O1/OS O1/09 01/17 1 la ~ lz/oa lz/lo 12/17 1z/le of/oz of/os o1/06 o1/lz of/19 I 15 1 12/05 12/11 12/18 12/19 Ol/OS O1/06 01/07 01/13 01/20 I ~ I 16 ~ 12/08 12/12 12/19 12/22 01/06 01/07 O1/OB Ol/14 01/21 I 17 I lz/o9 12/ls lz/zz 12/23 of/o7 of/oe of/09 of/ls ol/22 I 18 I 12/10 12/16 12/23 12/24 01/08 01/09 01/12 01/16 01/23 1 19 I 12/11 12/17 12/26 12/29 01/09 01/12 01/13 01/19 01/24 I 20 I 12/12 12/18 12/29 12/30 01/12 01/13 01/14 01/20 Ol/26 21 ~ 12/15 12/19 12/31 01/02 01/13 01/14 O1/15 01/21 01/27 I '~~ 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 finalized 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 l: The McCall franchise ordinance states 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, Faz (208) 324-1224 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 -2- 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. Please call me at (208) 324-2993 if you would like to discuss this matter further. Sincerely, Stan Craven SC:mmb -3- ORDINANCE NO. "AN ORDINANCE IN ACCORDANCE WITH IDAlIO CODE SO-328 AND SO-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 PL~-CES WITHIN THE CORPORATE LIMITS OF THE CITY OF Mr.~ar•i, IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF TfiENTY YEARS ; SUBJECTING SUCH ELECTRIC SERVICE TO REGULATION BY PUBLIC AUTHORITY; PROVIDING FOR PAYl~NT TO THE CITY OF COMPENSATION FOR THE EXERCISE OF SAID FRANCHISE; AND SPECIFYING OTHER LIMITJ~iTIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE." HE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCCALL , IDAHO, THAT: SECTION 1. The City of McCall , Idaho (hereinafter called the "City"j 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 l10) years from and after January 1, 1995 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 saintainad 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 McCali or adopted by the City during the ten (10) year tern 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 aaintenance of the Grantee's electric property and facilities on~tthe City streets, alleys, highways and public places, subject to the provisions of 1 any state or federal law applicable thereto, and th• Grantee shall at all tines conform with all such regulations. SECTIQx 3. Qpon request of the City the QraAtae shall sove their facilities as necasaary within the right o! 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 ~aintaininq 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 sale as the growth of said City or the needs of the inhabitants thereof may require; provided that when the Grantee, or any parson 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. 1111 laciities constructed under this ordinance shall be placed and maintained at such places and positions in or upon such public ways anti public places as shall not interfere with the passage of traffic and the use of adjoining property, and shall confors to ail applicable laws, rules and regulations. Grantee is required to apply for and receive all pewits as may be required by the City for vork in the public way. SECTION 5. The City shall have the free right and privilege to string and aaintain wires for its municipal police and fire alarm syateas 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. SECTI4x 6. The Grantee shall at all tes indemnity and hold the City, its officers, employees and age s, harmless fros 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 IItility Commission of the State of Idaho or by any other governmental authority now or hereafter having jurisdiction over such matters. During the tern of this franchise, the Grantee shall continuously aaintain facilities in the City for convenience to its customers for the payment of bills !or electric service during the usual office hours. SE i0ti 8. Nhen 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 Cfty, 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 say be necessary reasonably to accoamodate 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. ~s 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, 11pri1, 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 from all sources by the Grantee during the preceding quarter within the corporate limits of the City. 1-11 sums which become delinquent shall accumulate interest at the statutory rate provided in Idaho Code Title 78, 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 pity determines by audit, financial statement or other method, that grantee has underpaid franchise fees and where payment was not received by the City rithin the quarter erred, the grantee may be required to pay 3 all tees and interest due and an additional penalty of 2S~ of the total amount owed. Such franchise tee may be listed as a separate item on the custoaer's utility bill. SECTION 10. City agrees to follow the notice requirements of 63-2224k prior to the approval and coa~nencement of this franchise agreeaent. SECTION li. The Grantee shall keep accurate books of account and the City shall have the right to inspect the same at all taaes during business hours, and from time to time audit the sane !or 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 ten of this franchise; provided, however, that this section will not be interpreted or be construed as in any manner exempting the Gzantse 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 stateaent 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 7~greement say 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 sane, in accordance with stational 1lrborist ~ssociaticm standards, of the trimming of all trees whicII averaang the streets or public places in such a manner and to such extent as will prevent the branches or liabs 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 a''d 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 maintain and operate a systea for the distribution of electricity in a City so as to furnish what shall be known as a twenty-four boor 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 zssponsible 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 Comaission 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 ib. 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 vrittan notice that all rights conferred under this Ordinance and fts 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 data, 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 tailors 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 .Tu1v 1. 1994 , it is hereby adjudged and declared that this ordinance is necessary for the preservation of the public peace, healthy and safety, and therefore this ordinance shall take effect on January 1. 1995. 5 IDAHO POWER COMPANY T"'RD REVISED SHtti nu. cis CANCELS I P U C NO 25 TARIFF NO 101 SECOND REVISED SHEET N0. 27_E SCHEDULE N0. 71 IDAHO PUBLIC UTILITIES COUS~ri!SSION OVERHEAD AND UNDERGROUND APPROVED EFFECTIVE DISTRIBUTION LINE EXTENSIONS SUN 14 ~91 JUL 1-'y1 (cont) VIII. REFUNDS (Continued) ~y~~M- /~ 'SECRETARY 4. If the Extension Allowance of an Additional Applicant covers all applicable payments and still has a remaining balance, that surplus will be refunded among Vested Interest holders on a Connected Load basis until the surplus is exhausted or all Vested Interests are fully refunded. 5. Vested Interest refund payments may be waived by notifying the Company in writing. C. Refund Limitations Refunds will only be made for connections during the first five years following the completion date of the Line Extension or Upgrade construction. 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 under this paragraph, a Local Improvement District will be provided service under the general terms of this tariff schedule. Tfie~Comp~ny~will~provide a cost estimate. and feasibility-study~forra-.Local Improvemegt~:District .within 120; days after:, receiving. the, resolution~rfrom-lthee requesting'governing: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'.issuing ~the_ resolution ~~~iythe Company ~° -for Lhe : costs ~ ~.of_ preparing .:,the ;;,cost.<;,:estimate.~~ld~~f_e~;~bi~~~~rdy~ regardless., of whether the Line.Extension~or_the~Convers~on.actua~.~,ytakes;;;~'~ace': 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. ~f~the~ac~tual cost:-is less than the estimated=~cost~the;~;local. Improvement District~.will ..pay. the .actual cost: 1«'..~=the kactual:~.~ost..~exceeds~ahe estimated:~cost, <the:.:Local ,,Improvement. District~will.__pay only~t~ie =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. Issued - May 20, 1991 D. H. Jackson, Vice President, Distribution 1220 Idaho Street, Boise, Idaho Effective - July 1, 1991 ~yOC,1 A T/~~ Q ~~ ~ s~ \.. 'O~tiO -G`,``~ November 3, 1994 Association of Idaho Cities 3314 Grace Street, Boise, Idaho 83703 Telephone (208) 344-8594 Fax (208) 344-8677 To: Cities Served by Idaho Power Fr: Scott McDonald Re: Update There aze 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 Boazd 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, Moxow First Vice Pmidrnt R'inston Goenng Mayor. Nampa Secottd Vice President Kirk Hamm Mayor. Soda Spnngs Third Vice President Brent Coles Mayor. Boix Legislative Chairperson Paula Fonxy Councilmember. Botse Imrnedute Past Presidrnt Karen McGee Councilmember. Pocatello Executive Director Scon B. McDonald DIRECTORS James Hammond Mayor. Post Falls Susan Johnson Councilmember, Sandpoint Loretta Eixle Councilmembcr, Lewiston Laura Booth Count ilmember. Orofino Tad Freeman Houx Mayor. Cascade Ban w'estberg Councilmember Weixr Sfax Yemngton Councdmember. Mendian Ted Elh. Maws Garden Cin ChucA GesLa Councilmember. Buhl Dac td Adatr Slay or. Gooding Gregon Anderson Counalmember. Pocatello J. K'alter Ros. Mayor. Preaon John K'alker Mayor. Challis lames Flamm Councilmemher. Rexburg ACTIN"E PAST PRESIDEN Dixie Reid Councilmembec Coeur d'Ale Gram Kmgs(ord Slayar. Meridian Harold Stm< Slayror. Bonners FerrJ John O. Caant. )r Sia~or. Chubbuck Tim Ridinger Mayor. Shoshonr a Pentad On RecyclBd Pacer a y/LI AT/O~ ~~"` O~ ~i i,, . ~ \y0 G~~~~ Association of Idaho Cities 3314 Grace Street, Bo+se, Idaha 63703 Telephone (208j 344-8594 FaX (208) s4a-8sn 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 anon-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. Y Panted on Recycled Paper 10/25/94 ORDINANCE N0. "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. Zn 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 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 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 a) 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~~ht, heat, power and electric '.h'E' energy consumed during the preceding quarter within the corporate C,,~ctYY.r limits of the City. All sums which become delinquent shall th J accumulate interest at the statutory rate provided in Idaho Code d2Ftn~f 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 3 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. ~ h ~` 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 ~'dah 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 n ~' 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 ~ 1 AT/~ OFFICERS 0 , ~ ~ ~~ ~~ Association of Idaho Cities Pao~l dAgd`ius ' i 3314 Grace Street, Boise, Idaho 83703 Mayor. Mouoss '.~x\~ Telephone (208) 344-8594 Firsf vke PreYdenl ~~ Fax (208) 344-8677 i ~ i W instan Goering Mayor. Nampa ` O '4 ~ ident P d Vk y ~~ res e Secon KirA Hansen M E M O R A N D U M Mayor. Soda Spnngs TAkd Vice President Brent Coks October 2 8 , 19 9 4 Mayor. Boise ltRisiative Cluirpetsat TO: AIC Legislative Committee/AIC Board P,ulaFomey Courcilmember, Boix ~p Scott B. McDonald, Executive Director FROM : '""'"d""P'~P""d"" Kanm McCxe Councilmember. Pocatello SUBJECT: Electrical Franchise Fees ExecutiseDlreelor - - $con B. McDonald - -~~-----~---~'---'~------------l-"~----~~~---~----~'---~- DtRECTORS AIC and selected cities have met with representatives of James Hammond Idaho Power on three occasion to negotiate a model Mayor, Post Fails franchise agreement that includes a 3$ franchise fee. Susan Johnson The most recent negotiating session occurred on October Counc+lmember.Sandpoim 19 in Twin Falls. Changes to the ordinance were agreed LosenaEisck to in that meeting. There were some issues, however, Councilmember.i.ewiston that both sides agreed to continue to work on to reach CaouncBn~ietmlxr.Orofino resolution. Tad Freeman House The use of an advisory ballot by the city residents is \fasor. Caxade the major stumbling block. Enclosed is the ballot BanWcstberg Councilmember. Weiscr mailed by Idaho Power to Nampa rate payers in 1970. By ton \f Y mn the third reading, the Nampa City Council lost support as g c Counrilmember.Merid+an for their franchise ordinance. TedE,,,, Mawr. Garden Cny AIC firmly opposed the use of such an advisory ballot ChuckCxska during our meeting with Idaho Power. As a compromise, we Councilmember, Buhl offered to cosponsor a mailing desribing the pros and Daoid Ada+r cons of franchise fees to citizens. The cities would \fa~or.Gooding write the "pro" portion, and Idaho Power would write the Grcgnn Anderson "con" portion. Additionally, if desired, a multiple Councilmembcr.P«atello choice survey of several fiscal alternatives could be I WalterRoss professionally written and independently administered as Ma~or.Pres+on an alternative for the more populated cities . M v a Chafl+s or. On Frida , October 21 Idaho Power moved ahead Y I James Flamm Councilmcmber. Rezburg unilaterally with their own public information campaign on franchise fees. (See enclosure entitled "Idaho Power ACTIVE PAST PRESIDE Information Sheet -Utility Franchise Fees"). This action indicates that Idaho Power intends to limit the D+zie Reid Co°ncilmember. Coeur d'A1 process of clarifying Idaho code as it relates to cities Gnm Kingsford franchise authority. Their stated goal is to legislate Mayor. Verid+an the following: Harold Sims V as Or. Bonnen Fem John O. Count. )r. Mai or, Chubbud T+m R+dmgcr Mayor. Shoshonr ~y Irrrportayt Kotice Enclosed is an opportunity for you to express your opinion concerning a pro- posed new tax which would apply only to Nampo electric users. ~' SEVERN, RIPLEY, DOORN ~ HANSON Sulk Rots Ctrtifi~d Public Aaountants U. S. POSTAGE P. O. Sox 446 P A 1 D Nompa, Idaho 83b51 Permit No. 11 NAMPA, IDAHO E11RNESTrrE ~TARR NAMPATIOAHO N836S1 PostaQ~ No Will b~ Paid ~e~~p by a x.ll~a In ~~ AddnssM Ualted Sula BUSINESS REPLY CARD first Closs P~rrnit No. 21 Nompo, Idoho SEVERN, RIPLEY, DOORN 6 HANSON ~ Certified Public Aaountonts P.O. Box 446 ~ Nampo, Idaho 83651 ~ 8ipe1 PRESS RELEASE The annual cost for street lighting in our dty 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 dty 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 ?5Q 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 flrom 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:emb d3 ~o~ Ario~ ~ ~ o~, of ,,,~.~ i i ~ 0,4yo C`,~~~ Association of Idaho Cities 3314 Grace Street, Base, Idaho 83703 Telephone (208) 344-8594 PRESS RELEASE FOR I A RELEASE Contact: Scott McDonald October 5, 1995 344-8594 Electrical ranchise Fees vs Property Taz 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 Ontazio, 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 yeaz 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 aze a multitude of government organizations who aze exempt from paying any property taxes but benefit from city services. - more - /~i IoAHO POWER COMPANY Idaho Power Information Sheet lEaA~ , , ~P'~IIVER BOISE, DAHO837O7 Ut~l~ty Franchise Fees Q: What is a franchise? Q: How would customers' voices A: Municipal franchises authorize utilities or other be heard? service providers w utilize a city's streets and alleys for the location of equipment and facilities. In Idaho Power's case, this pertains w the elecuical equipment necessary w provide an essential service. Franchise agreements may also restrict the city's right w compeu with a utility's service m city residents. Franchises don't grant Idaho Power the right ro serve customers. The Idaho Public Utilities Commission grants that ~~ Q: What is a franchise fee? A: It's a fee or tax charged to the utility or busincss 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 law, cities are not authorized to impose franchise fees on electric utilities such Ss 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: Uttimately, the company's customers would. The Idaho Public Utilities Commission has Wiled that franchise fees will be billed to a utility's customers within the area or locality in which the fee applies and appear as a separate item on cttswmers' bills. Idaho Power would serve in an administrative role by collecting the fees and fuming the revenues over w the city. Q: Does Idaho Power oppose franchise fees? A: Under certain terms and conditions, Idaho Power would not oppose fanchise fees. Chief among them is a pro- vision wallow customers a voice in the impbsidon of such fees. A: Idaho Power supports providing all city resi- dents as opportunity w volt on franchise fees at a public eloaiort. No franchise fee should be imposed upon an electric utility's customers without majority approval. Q: Specifically, what conditions does Idaho Power believe are necessary? A: Idaho Power would not oppose changes to-state law governing franchise fees if 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 fonh as a separate item on each customer's electric utility bill. • The fees shall nor exceed 3 perce:tt of the reve- nues collected by an electric utility from its customers within the city limits. • The Idaho Public Utilities Commission shall review and approve all electric utility frattchise agree- mentswhich include fees before they become effective. • The tam of the franchise agreement between the ClCrtriC utility and the city shall not be less than 20 nor more than SO years. Absent a change to state law, Idaho Power would be willing to consider a 5attcl:isc agreement with a city provided is 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 ctutomers m 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 opporwttity to visit with customers and discuss this and any other company-related issue. Feel fret ro call your local Idaho Power office. 1 • ORDINANCE NO..~1~ ,. ~ ~ ;' AN ORDINANCE GRANTING A NONEXCLUSIYE TRANCHISE fid 1bANt1 POWER CoMPAf.'Y, A CORPORATION, AND TO 1iS SUCCESSORS ANb ASSICHS, fid CANSTRUCT, MAINTAIN AHD ~• OPERATE IN AND UPON T}IE PRESENT AND FUTURE ST~tEETS, HIGHWAYS At~D OTHER PUBLIC ! • PLACES gIT11IH THE CORPORATE LIMITS 0$. THE CITY tlf fA?ETTf.; IDAHO, ELEC?RIG UTILITY PROPERTY AND fACILITIF.S FbR SUPPLYING ELECfiRICiTY AND ELEC'fRfC SERVICE TO THE CITY, THE tNHA9IiANTS 'THEREOF; AND ofiHERs tdR 1t l~Ei~: Of flFr~ YtiARS: , • SUDJECTIHC SUCH E1.EC'IRIC SERVICE TO kEcuLAtION EY ?UEL1C AU1'NORITI! ~ Rf:VOKINC PRIOR FRANC}}IS$ ORDINANCE; AND SPECiFYiNG OfikER LiFIiTA1'20NS, TERMS AND GUN- . DITIONS COVER>oiNC TH$ EXEI4CISE OP" 5AIii Pi4ANCHiSEa " " i ee it ordained Sy the Mayor and Cauncii of the Cicy of PryettE, rayatt! councy~ idahe, that: " SeeEion 1~ fhlf! is hereby Rtaetld to idahe Pbalf Cbe'ipeny, !t6 ,utel9sora , and assignr (herein Balled th! t;lant!!) !non-exelualve tight, privilege of fian'chia! until ~lu~_5a...202D.' :,t t6 E6nrtfuct; iKaintain an9 operate in chi pt!!!nt and fucute attlltet- !~!g Bred ¢ubiiE Piet!! i!} the City of Payette, PaylitE Cbunty; idahe, ahd !Et tut!lstefs, !ilettit iinht and Porer lines, teRether aith u 1 the ntc!!!ef# s! g!!!flbi! a~~uftlnlntes tin- cluding ufidefktauhd cenduitr, pol!!, toaetr, lrit!!r-' Ef<inse~iaaian liht! and telegraph and telephen! liner Pot its 6vA tlaE); tot E11! pulpbr! of tttQp~yinR ' electricity to laid city, the ihhe6itants theteef~tl}8 pltsenr and Cdfpbtetieer' beyond the liana thereof, for 11Rht, AesE~ ¢alllf g1}d ethat purpartrs. • ,, . Sachets 2, four and toweta ahail b! EeRltfuetlt,ie ! Reod and lubrtantial lunnef, and vies be ab etettld a net tti"interfere with trades or ordinary use of atreeta and aiityr not be in Oielatiee with the i~lnlral -. etdinante..ef chi City of Payette, idahe. fih! letatiet} of polls, toirerr at+d • tendaits rhaii b! fitlA under th! tuplfviatan Af.Eh! City Council tlf th! city, -but nbt eo as to interfere unrlasanabiy with Eh! ¢ldptt eylration of th! ~~ Gtaistea'e liner: - "; ='-'• • `` i' Slatian 3~ Th! ~fanta! shall inalanify and qu!'!ft! City harmless Prose any and ail lftplnr! of liabilitf Mkit'h fly sfEtue to it by reason bf the negiigenle e# alrteoslduet of th! Ctant!! in th! tonatruction, dperatien et mainttnante of its lvate>ti h!tlundlf: , 5lttiofs 4, 'Th! City eha11 haV! th! ft!! #ikAt llld pfivilet;e to etrink dnd maintain +tlfer faf its r~uritip'~i peiiet and fir! alafa tynteree upon the ppila sad ether fatiiitita etlECld ti}d >Dalnttil}!d by Eh! Gtante! " sectiee S, ?h! City bf Payr~tt! 8+ai• art_ "aA~"~fu~u~E fl/t!' itapoae a ftanchiR! tail; -tt! eE charge ief, th! lieltttt ~if'laiilRe and franchise granted h!tlins _ • =` '~'~- -~~ Sectioh~6: 'shat ER~a lfanthiae"If~a" be tt~ekl~~in~ tlf~inated by the cicy ' sf faglEtl, idahe ih t~! !`dhnt IAAt'"tH!•CrahtlE herein falls to uae diliReAtse to aup¢1~ Eh! C`iEY and it! l,l,a6ittflEf~rith~lleetrieal service: _ ~"_ - _ - ^s: . - ~_• ~- - sactiofi i~. 'fhla tight, pEi~iilge and"fE~tiehi!! ~aatld herein lha~ i ae ' - aubjlet Eo ehanrtf and lAadifieltiblt~ •¢nita and Re}IUiatincis oe " th! Idaho State Vubiie UtiliEitt~cetn~isritnf~afid b~~I~ahe.gtate statutly. • ~ "J -~ - slttit3n 8: 'Ih! •~laet!! shall`"flit• ttiE~'tNl~ ~i ~1lfk !h atclptrnc! in ' vEiting of this ffanchiati; 6M•~t b~l~eta thirty days lf.tlf the , ' Slttien 9,j fihii erdifia~!'st-iii'takt'Eftett~t""~41r dlrrage,- apphte~ai ny thr Aayet;`aEtlptYnE! W EtRE~t~frKtlt R!flih; and pubiiEa4ion vichin ors! aat~th aft!>* i~te•pleeiRl~ -.:,4..`'•~5:'~"~'.~;~;;..• .,~~ ~ i ~' .w..: 6,ti t: ~ - t,^ t .. V~ .1 . • ! • • - •~fii~ McCALL CITY ENGINEER June 19,1997 JackPaananen P.O. Box 332 McCall, ID 83638 Re: Sewer Service to 1400 & 1402 Mill Rd. Dear Mr. Paananen, I wrote to you in November, 1996, indicating that infrastructure improvements in your neighborhood were nearing completion. The East Lake Street Road, Water, and Sewer Improvement Project is complete. New sewer stub-outs have been provided at the property line in East Lake Street. The old sewer line will be abandoned on July 1, 1997. If you have not already done so, please make the necessary arrangements to connect to the new sewer line prior to that date, I appreciate your cooperation in this matter. Sincerely, ' C rc'l t ~' Ca ~ ~,-~ /~ ,; Jacqueline R. DeClue, P.E. City Engineer c: G. Shimun B. Keating C:\My Documents\CORRESPO\TOOTHM-1\ELAKE\PAANANEN-june.DOC 216 East Park Street P.O. Box 986 • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038 IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-1 IDAHO PUBLIC UTILITIES COh1k91SSION CANCELS A°Pf~OVED EFFECTIVE I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-1 • MAR 2 4 '97 MAR 2 5 '97 RULE H ~/ NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS /h`~if'L"~ ~ ~~%~..~ gECRETARY OR ALTERATIONS This rule applies to requests for electric service under Schedules 1, 7, 9, 19, 24, 45, and 46 that require the installation, alteration, relocation, removal, or attachment of Company-owned distribution facilities. New construction beyond the Point of Delivery for Schedule 9 or Schedule 19 is subject to the provisions for facilities charges under those schedules. This rule does not apply to transmission or substation facilities, or to requests for electric service that are of a speculative nature. DEFINITIONS Additional Applicant is a person or entity whose Application requires the Company to provide new or relocated service from an existing section of distribution facilities with a Vested Interest. Applicant is a person or entity whose Application requires the Company to provide new or relocated service from distribution facilities that are free and clear of any Vested Interest. Application is a request by an Applicant or Additional Applicant for new electric service from the Company. The Company, at its discretion, may require the Applicant or Additional Applicant to sign a written application. Connected Load is the total nameplate kW rating of the electric loads connected for commercial, industrial, or irrigation service. Connected Load for residences is considered to be 25 kW for residences with electric space heat and 15 kW for all other residences. Company Betterment is that portion of the Work Order Cost of a Line Installation, alteration, and/or Relocation that provides a benefit to the Company not required by the Applicant or Additional Applicant. Increases in conductor size and work necessitated by the increase in conductor size are considered a Company Betterment if the Connected Load added by the Applicant or Additional Applicant is less than 100 kilowatts. Fire Protection Facilities are water pumps and other fire protection equipment, served separately from the Applicant's other electric load, which operate only for short periods of time in emergency situations and/or from time to time for testing purposes. Line Installation is any installation of new distribution facilities (excluding relocations or alteration of existing distribution facilities) owned by the Company. Line Installation Allowance is the portion of the estimated cost of a Line Installation funded by the Company. Line installation Charge is the partially refundable charge assessed an Applicant or Additional Applicant whenever a Line Installation is built for that individual. Local Improvement District is an entity created by the appropriate city or county governing body, as provided by Idaho Code §50-2503, whose purpose is to provide for the study, financing and construction of Distribution Line Installation or Alteration. The governing body shall assess property owners to recover the cost of the Distribution Line Installation or Alteration. A Local Improvement District has discernible property boundaries. Multiple Occupancy Projects are projects that are intended to be occupied by more than four owners or tenants. Examples include, but are not limited to, condominiums and apartments. Relocation is a change in the location of existing distribution facilities. RECEIVED JUL 24 1991 I AH Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-2 IDAHO PUBLIC UTILITIES CO!ViMISSION ' CANCELS App??JVrD Et-FECTIVE I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-2 MAR 2 4 '97 h1AR 2 5 '97 RULE H ,, NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~~~ ~ -~%~.c.~.~..L SECRETARY OR ALTERATIONS (Continued) DEFINITIONS (Continued) Subdivision is the division of a lot, tract, or parcel of land into two or more parts for the purpose of transferring ownership or for the construction of improvements thereon, that is lawfully recognized and approved by the appropriate governmental authorities. Temporary Line Installation is a Line Installation for electric service of 18 calendar months or less in duration. Temporary Service Attachment is a service attachment to a Customer provided temporary pole which typically furnishes electric service for construction. Terminal Facilities include transformer, meter, service cable, and underground conduit (where applicable). ~lnderoround Service Attachment Charge is the non-refundable charge assessed an Applicant or Additional Applicant whenever new single phase underground service is required by a Schedule 1 or Schedule 7 customer attaching to the Company's distribution system. Unusual Conditions are construction conditions not normally encountered. These conditions may include, but are not limited to: frost, landscape replacement, road compaction, pavement replacement, chip-sealing, rock digging, boring, nonstandard facilities or construction practices, and other than available voltage requirements. Vested Interest is the right to a refund that an Applicant or Additional Applicant holds in a specific section of distribution facilities when Additional Applicants attach to that section of distribution facilities. Vested Interest Charge is an amount collected from an Additional Applicant for refund to a Vested Interest Holder. Vested Interest Holder is an entity that has paid a refundable Line Installation Charge to the Company for a Line Installation. A Vested Interest Holder may also be an entity that has paid a refundable charge to the Company under the provisions of a prior Rule or Schedule. Vested Interest Refund is a refund payment to an existing Vested Interest Holder resulting from a Vested Interest Charge to an Additional Applicant. Vested interest Portion is that part of the Company's distribution system in which a Vested Interest is held. Work Order Cost is a cost estimate performed by the Company for a specific request for service by an Applicant or Additional Applicant. The Work Order Cost will include General Overheads limited to 1.5%. General Overheads in excess of 1.5% will be funded by the Company. II. GENERAL PROVISIONS A. Cost Information -The Company will provide cost information as reflected in the charges contained in this rule, to potential Applicants and/or Additional Applicants. This preliminary information will not be considered a formal cost quote and will not be binding on the Company or Applicant but rather will assist the Applicant or Additional Applicant in the decision to request a formal cost quote. Upon receiving a request for a formal cost quote, the Applicant or Additional Applicant will be required to prepay non-refundable engineering costs to the Company B. Ownership -The Company will own all distribution Line Installations and retain all rights to them. C. Rights-of--Way -The Company will construct, own, operate, and maintain lines only along public streets, roads, and highways that the Company has the legal right to occupy, and on public lands and private IDAHO Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-3 IDAHO PUBLIC UTILITIES CORf``~!fSSION CANCELS APPR^I~ED EFi-~E~TI~~E I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-3 ' MAR ~ 4'97 MAR 2 5 '97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~y~"~ JE -~'~ SECRETARY OR ALTERATIONS (Continued} GENERAL PROVISIONS (Continued) property across which rights-of-way satisfactory to the Company may be obtained at the Applicant or Additional Applicant's expense . D. Removals -The Company reserves the right to remove any distribution facilities that have not been used for one year. Facilities shall be removed only after providing 60 days written notice to the last Customer of record and the owner of the property served, giving them a reasonable opportunity to respond. E. Proper ySpecifications -Applicants or Additional Applicants must provide the Company with final property specifications as required and approved by the appropriate governmental authorities. These specifications may include but are not limited to: recorded plat maps, utility easements, final construction grades, and property pins. F. ~Jndeveloped Subdivisions -When electric service is not provided to the individual spaces or lots within a Subdivision, the Subdivision will be classified as undeveloped. G. Mobile Home Courts -Owners of mobile home courts will install, own, operate, and maintain all termination poles, pedestals, meter loops, and conductors from the Point of Delivery. H. Conditions for Start of Construction -Construction of the Line Installations and/or Relocations will not be scheduled until the Applicant or Additional Applicant pays the appropriate charges to the Company. I. Terms of Payment -All payments listed under this Section will be paid to the Company in cash 30 days prior to the start of Company construction, unless mutually agreed otherwise. J. Interest on Payment - If the Company does not start construction on a Line Extension and/or Relocation within 30 days after receipt of the construction payment, the Company will compute interest on the payment amount beginning on the 31st day and ending once Company construction actually begins. Interest will be computed at the rate applicable under the Company's General Rule F. If this computation results in a value of $10.00 or more, the Company will pay such interest to the Applicant, Additional Applicant, or Subdivider. K. Fire Protection Facilities -The Company will provide service to Fire Protection Facilities when the Applicant pays the full costs of the Line Installation including Terminal Facilities, less Company Betterment. These costs are not subject to a Line Installation Allowance, but are eligible for Vested Interest Refunds under Section VI.A. L. Customer Provided Trench Diagina and Backfill -The Company will at its discretion allow an Applicant, Additional Applicant or Subdivider to provide trench digging and a backfill. In a joint trench, backfill must be provided by the Company. Costs of Customer provided trench and backfill will be removed or not included in the work order costs and will not be subject to refund. III. LINE INSTALLATION ALLOWANCES The Company will contribute an allowance for the Terminal Facilities necessary for Service Attachments and/or Line Installations. A Line Installation Allowance will not be applied to the Line Installation costs for a Subdivision except for the Work Order Cost of Terminal Facilities. Subdividers may recoup their payments only through the refunding provisions under Section VI of this Rule. IDAHO Issued by IDAHO POWER COMPANY Issued -March 24, 1997 ~^,. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-4 IDAHO PUSLIC U i ILi r IES C'O~t"PE^!SSION CANCELS APPROVED EFFEOTIVE I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-4 MAR 2 4 '97 N,QR 2 5 '97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~y~•'~ J~ -~'~ SECRETARY OR ALTERATIONS (Continued) LINE INSTALLATION ALLOWANCES (Continued) Schedule 1 Maximum Allowance Non-Electric Heat .............Overhead Terminal Facilities + $1000 All-Electric ...................Overhead Terminal Facilities + $1300 Multiple Occupancy Projects Single Phase ................. Overhead Terminal Facilities Three Phase .................... 80% of Terminal Facilities Schedule 7 Single Phase .................Overhead Terminal Facilities Three Phase .................... 80% of Terminal Facilities Schedule 9 Single Phase ...................................$1726 Three Phase .................... 80% of Terminal Facilities Schedule 24 Single Phase ...................................$1726 Three Phase .......................... Terminal Facilities Schedule 19 ....................................... Case-By-Case IV. ~HA~ES FOR LINE INSTALLATIONS AND ADDITIONAL CHARGES FOR UNDERGROUND SERVICE ATTACHMENTS An Applicant or Additional Applicant will pay the Company for construction of Line Installations and/or Underground Service Attachments, less Line Installation Allowances, based upon the charges listed in this section. A. one Installation Charge If a Line Installation is required, the Applicant or Additional Applicant will pay a partially refundable Line Installation Charge equal to the Work Order Cost less applicable Line Installation Allowances. Line Installation Charges Inside Subdivisions Inside a Subdivision, the Line Installation Charges are calculated using the Work Order Cost less Terminal Facilities. The maximum refund will be the total per lot refund amount as specified in Section VI.B., but not more than the Work Order Cost less Terminal Facilities. Costs of new facilities outside Subdivisions are subject to Vested Interest refunds. B. Underground Service Attachment Charge Each Applicant or Additional Applicant will pay anon-refundable Underground Service Attachment Charge for attaching new Terminal Facilities to the Company's distribution system. The Company will determine the location and maximum length of Service Cable. Schedule 1 and Schedule 7. Single Phase Underground Service Cable (Base charge plus distance charge) IDAHO Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-5 IDAHO PUBLIC U i ILITitS C01'~9MISSION CANCELS APPROVED ~~~ECTIVE I P U.C NO. 26. TARIFF NO 101 ORIGINAL SHEET NO. H-5 MAR 2 4'97 MAR 2 5 '97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS `~ „4 OR ALTERATIONS (Continued) `5~t ~~`•'`~°-SECRETARY CHARGES FOR LINE INSTALLATIONS AND ADDITIONAL CHARGES FOR UNDERGROUND SERVICE ATTACHMENTS (Continued) Base Charge from underground $ 30.00 from overhead including riser $255.00 Distance Charge (per foot) Company Installed Facilities $ 5.05 Customer Provided Trench & Conduit $ 1.05 (Schedule 1 only, Single Family and Duplex) C. Vested Interest Charge Additional Definitions for Section IV.C. and Section VI.A.: Original Investment -Work Order Cost less Terminal Facilities Allowance. Vested Interest Holder's Contribution -Customer Payment plus Line Installation Allowances other than Terminal Facilities. Vested Interest -Amount potentially subject to refund. Load Ratio -Additional Applicant load divided by the sum of Additional Applicant load and Vested Interest Holder's load. Distance Ratio -Additional Applicant distance divided by original distance. 1. The initial Applicant will pay the Original Investment cost less any Allowances. An Additional Applicant connecting to a Vested Interest Portion will have two options: Option One - An additional Applicant may choose to pay the current Vested Interest Holder's Vested Interest, in which case the Additional Applicant will become the Vested Interest Holder and, as such, will become eligible to receive Vested Interest Refunds up to that new Vested Interest Holder's contribution less 20% of the Original Investment. Option Two - An additional Applicant may choose to pay an amount determined by this equation: Vested Interest Payment =Load Ratio x Distance Ratio x Vested Interest Holder's unrefunded Contribution. If Option Two is selected, the Additional Applicant has NO Vested Interest and the previous Vested Interest Holder remains the Vested Interest Holder. The Vested Interest Holder's Vested Interest will be reduced by the newest Additional Applicant's payment. 2. The Vested Interest Charge will not exceed the sum of the Vested Interests in the Vested Interest Portion. 3. If an Additional Applicant connects to a Vested Interest Portion which was established under a prior Rule or Schedule, the Vested Interest Charges of the previous Rule or Schedule apply to the Additional Applicant. V. OTHER CHARGES All Charges in this Section are non-refundable. A. Relocation and Removal Charges - If an Applicant or Additional Applicant requests a Relocation or removal of Company facilities, the Applicant or Additional Applicant will pay anon-refundable charge equal to the Work Order Cost. B. engineering Charge -Applicants or Additional Applicants will be required to prepay all engineering costs for Line Installations, and/or Relocations. Engineering charges will be calculated at $36.00 per hour. IDAHO Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-6 IDAHO PuB"~ ;; i I;.ITi~;. .,"F~~iSS!ON CANCELS APPRO'JED ~: =~~:'i'~;/t I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-6 MAR 2 x+'97 f-'i~R 2 5 '97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~~~~~ ~ -~~ SECRETARY OR ALTERATIONS (Continued) OTHER CHARGES (Continued) C. Right of Way Charoe -Applicants or Additional Applicants will be responsible for any costs associated with the acquisition of right-of--way. D. Temporar~Line Installation Charoe -Applicants or Additional Applicants will pay the installation and removal costs of providing Temporary Line Installations. E. Temporary Service Attachment Charge -Applicants or Additional Applicants will pay for Temporary Service Attachments as follows: Underground - $140 The Customer provided pole must be set within two linear feet of the Company's existing transformer or junction box. 2. Overhead - $120 The Customer provided pole shall be set in a location that does not require more than 100 feet of #2 aluminum service conductor that can be readily attached to the permanent location by merely relocating it. The electrical facilities provided by the Customer on the pole shall be properly grounded, electrically safe, and ready for connection to Company facilities. The Customer shall obtain all permits required by the applicable state, county, or municipal governments and will provide copies or verification to the Company as required. The above conditions must be satisfied before the service will be attached. Refer to Schedule 66, Item 9 for charges if these conditions are not satisfied. F. lJnusual Conditions -Applicants, Additional Applicants, and Subdividers will pay the Company the additional costs associated with any Unusual Conditions included in the Work Order related to the construction of a Line Installation or Relocation. This payment, or portion thereof, will be refunded to the extent that the Unusual Conditions are not encountered. Unusual Conditions payments for Line Installations will also be refunded, under the provisions of Section VI, if the Unusual Conditions are encountered. G. Joint Trench -Applicants, Additional Applicants, and Subdividers will pay the Company for trench and backfill costs included in the work order prepared for an unshaved trench. In the event that the Company is able to defray any of the trench and backfill costs included in the work order through the sharing of the trench with other utilities, the trench and backfill cost savings will be refunded. H. Intervenor Funding Lot Charge -The Company will assess a per lot charge on all residential Subdivision Work Orders issued on or after the approval date of this Rule. This charge will expire on February 26, 1998. Refer to Schedule 66, Item 10, for the specific charge per lot. VI. REFUNDS A. Vested Interest Refunds -The initial Applicant will be eligible to receive up to 80% of the Original Investment as a Vested Interest Refund in accordance with Section IV.C. Refunds will be funded by the Additional Applicant's Vested Interest Charge as calculated in accordance with Section IV.C. IQ--A.H-Q Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET N0. H-7 «AHO PUBLIC U I !CITIES Cv^^".1MlSSION CANCELS AF`'nOVED E~FEC T NE I.P.U.C. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. H-7 N',G~ 2 ~-'~7 h~AR 2 5'97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~`~`~" ~~ -~~'~-~-~-~- ~=~RtTA~?Y OR ALTERATIONS (Continued) REFUNDS (Continued) Vested Interest Refund Limitations a. Except for Rule VI.C., Vested Interest Refunds will be funded by no more than four Additional Applicants during the 5 year period following the completion date of the Line Installation for the initial Applicant. b. In no circumstance will refunds exceed 100% of the refundable portion of any party's cash payment to the Company. B. Subdivision Refunds 1. A Subdivider will be eligible for Vested Interest Refunds for payments for Line construction outside the subdivision. 2. A Subdivider will be eligible for a refund from the Company on the Line Installation Charge inside the Subdivision when a permanent customer connects for service and occupies a lot inside the Subdivision. The amount refunded to Subdividers of residential Subdivisions will be $800 per lot. C. Special Rule for Undeveloped Subdivisions Platted Prior to January 1 1997 1. For an undeveloped Subdivision which has been platted prior to January 1, 1997, and which has not been amended after January 1, 1997, refunds will be made for connections inside the Subdivision during the first 10 years following the completion date of the Line Installation. 2. The Subdivider will not be entitled to refunds under Sections VI.6.2. and VI.6.3. Connections within the undeveloped Subdivision will be treated as individual Applicants or Additional Applicants for payment, extension allowance, and refunding purposes. 3. The individual requesting the 10 year refund date will have the burden of demonstrating that the Line Installation is to a Subdivision which has been platted and is undeveloped. VII. LINE INSTALLATION AGREEMENTS When the Line Installation Allowance paid by the Company under the provisions of this rule equals or exceeds $75,000, the Applicant will be required to contract to pay, for a period of 5 years following the completion date of the Line Installation, an annual payment equal to the greater of the billings determined by application of the appropriate schedule or: A. Eighty percent of the Applicant's total annual bill as determined by application of the appropriate schedule; plus; B. Twenty percent of the Line Installation Allowance granted the Applicant Each Line Installation, for which the Line Installation Allowance paid equals or exceeds $75,000, will require a separate Uniform Distribution Line Installation Agreement between the Applicant and the Company. ~-~ Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho IDAHO POWER COMPANY FIRST REVISED SHEET NO. H-8 IDAHO PU6LIC vTILITI~~ ~~0'"'~lISSIOf~ CANCELS ~~"T~ =%~~'!=D E`Fr=CT1VE I.P.U C NO. 26. TARIFF NO 101 ORIGINAL SHEET NO H-8 N'~AR2~'G7 ~~~R25'97 RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE INSTALLATIONS ~~~~ ~ -~~`~'<-~-a-SECRETARY QR ALTERATIONS (Continued) LINE INSTALLATION AGREEMENTS (Continued) Developers of multi-family residential dwellings in which each unit is separately metered will be exempt from the requirement to enter into an agreement with the Company if the Line Installation Allowance paid equals or exceeds $75,000. VIII. EXISTING AGREEMENTS This rule shall not cancel existing agreements, including refund provisions, between the Company and previous Applicants, or Additional Applicants. All Applications will be governed and administered under the Rule or Schedule in effect at the time the Applicant was received and dated by the Company. IX. LOCAL IMPROVEMENT DISTRICTS Unless specifically provided for under this paragraph, a Local Improvement District will be provided service under the general terms of this Rule. The Company will provide a cost estimate and feasibility study for a Local Improvement District within 120 days after receiving the resolution from the requesting governing 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 6 months of the submission of the estimate for reasons not within the control of the Company. The governing body issuing the resolution will pay the Company for the costs of preparing the cost estimate and feasibility study regardless of whether the Line Installation or the conversion actually takes place. After passage of the Local Improvement District ordinance, the Company will construct the Line Installation 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, the Local Improvement District will pay the actual cost. If the actual cost 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 a Line Installation Allowance for any new load connecting for service upon the completion of the Line Installation. A Local Improvement District will retain a Vested Interest in any Line Installation to the Local Improvement District. A Local Improvement District may waive payments for Vested Interest from Additional Applicants within the Local Improvement District. IDAHO Issued by IDAHO POWER COMPANY Issued -March 24, 1997 D. H. Jackson, Vice President, Retail Services Effective -March 25, 1997 1221 West Idaho Street, Boise, Idaho REPORT ON MUNICIPALIZATION OF ELECTRICAL POWER INTRODUCTION This report will examine options made available to the City of McCall as a result of the expiration of it's franchise agreement with Idaho Power, as well as actions taken in its last session by the Idaho legislature that limit the ability of municipalities to bargain in good faith with utility companies. The electrical utility industry is in a state of flux. Private investor owned utilities like Idaho Power have enjoyed a monopoly for the majority of this century in this state. However, in response to the Energy Policy Act of 1992 (EPAct), the Federal Energy Regulatory Commission (FERC) has promulgated rules intent on opening the industry to competition. This extraordinary shift in public policy from regulated monopoly to open competition has traumatized Idaho Power. In Idaho it is tempered by Electric Supplier Stabilization Act. A normal firm in a competitive market, when faced with a new set of circumstances, evaluates its strengths and weaknesses, consults its customers regarding their needs and desires, and logically pursues a new course of action that accentuates their competitive edge, addresses areas of concern, and seeks a new market niche. When a monopoly is faced with competition, it can assume the same approach as a normal firm, or it can attempt to ignore the real world and continue to seek monopoly protection. Idaho Power has chosen the second route. In order to insure stability for the next 25 years, Idaho Power has used its significant lobbying resources to manipulate a vulnerable state legislature, extort municipal governments, and hoodwink the general public. Their expressed concern was not wanting to act as a tax collector for municipalities. Their tactic was to present themselves as champions for the common folk who were about to be raped and pillaged by local governments lusting after additional revenue (see page 8 of exhibit A). In reality, their purpose was to save themselves from having to compete in an open market, thus insuring a guaranteed rate of return to their private stockholders. They do this by offering franchise agreements which guarantee them a reasonable expectation to serve for at least ten years, and, if conditions change, monetary claim for stranded costs. Their tactic was extremely successful. They were adept at taking the focus off the real issues and casting aspersions on local government intentions. They were masterful at exploiting a short legislative session to keep the opposition from organizing or exposing their real concern. However, the short time frame did not allow them to fully capitalize on their plot. They left a loop hole in Idaho Code 50-328 through 50-329A. It did not require municipalities to enter into franchise agreements. AVAILABLE OPTIONS 'The City of McCall is presented with several options. First, Idaho Power has presented the City with a franchise agreement. The basic terms of this agreement pattern Idaho Code regarding franchises, and asks for a term of 25 years. It also offers to collect a franchise fee of 1 percent of gross revenues without further negotiation, and allows for an election at any time to raise the franchise fee up to the legal maximum of 3 percent. No additional negotiation for benefits is available to municipalities under Idaho Code. Second, the City may reject the language of this regarding term and opt for a shorter term, but not less than 10 years under Idaho Code. This would allow the City to review its position juxtaposed with the electrical industry in a shorter period of time. Since major changes in the delivery of electrical power are anticipated within that period of time, it would be wise for the City not to commit itself to any term longer than the statutory minimum. Third, the City may hold its franchise fee election prior to negotiating with Idaho Power so as to enter into discussions on franchise length without having to trade additional years for the option to go to the people at a later date. A fourth option is to decide not to enter into a franchise agreement. In that instance, Idaho Power is treated like any other contractor working in our streets. This is the method we are currently using, and we have not run into any major snags. This will leave all options open to the City and its residents to capitalize on the competitive changes in the industry that will be upon us in the next five years. Retail wheeling is a likelihood, where customers can choose their service provider much along the same lines as customers choose their long distance telephone service provider. The most likely result will be very competitive pricing for electric consumers. A fifth option is to exercise our legal option to provide the utility of electricity the same way we provide any other municipal service, like water and sewer. In fact, sewer is an excellent example of a situation where we control the delivery of the service, but contract out the maintenance. To implement this strategy would require condemnation of facilities owned by Idaho Power and used in the delivery of electrical power to the end user. The practical consideration of this action would be the cost of acquisition. We have a bargaining chip in this discussion in that we have an expired franchise agreement. Without the franchise agreement, Idaho Power does not have a reasonable expectation to serve. in fact, since we have indicated at this point that we do not want to enter into an agreement, their reasonable expectation is not to serve. Secondly, when a municipality elects to exercise its right of condemnation, an electrical utility with a franchise agreement can expect to be compensated for stranded costs associated with its continuing investment in providing service to franchised customers. The franchise represents the period of time a utility can expect to serve a community. Once it expires, the utility should have fully depreciated its investment and left the municipality with no obligation to compensate further. 2 The sixth option is to acquire parts of the system as they become available. This strategy is most easily implemented through the subdivision ordinance. The subdivision ordinance for the City of McCall requires developers to pay for the installation of certain improvements, including the undergrounding of electrical service. As has been the case, once these improvements have been installed, Idaho Power takes them over free of charge. The City could elect to do the same. Similarly, Idaho Power will not negotiate for the undergrounding of electrical services, and insists that the cost for doing so be borne by the community, but given, gratis, to them. Should the City elect to create Local or Business Improvement Districts to fund the undergrounding of electrical services, the City could then elect to keep those improvements, rather than surrendering them at no cost to Idaho Power. The seventh option is to pursue a strategy referred to as "municipal lite". This course of action involves a contested position in the EPAct that might allow municipalities to own limited portions of the distribution system (like customer meters), and petition FERC for a wheeling order to transmit electricity wholesale to end users who are charged retail costs by the City. This assumes certain other requirements are met. Other options that integrate parts of the above options may also be constructed, but do not contribute additional concepts from those already listed. RECOMMENDED OPTION In view of the aforementioned information, I recommend that the City pursue some variant to the sixth option. First, the City of McCall should not enter into a franchise agreement with Idaho Power. Doing so exposes the City to liability for payment of stranded costs. In fact, the City should outline in fair detail its anticipated course of action for assuming Idaho Power's customer base. Second, McCall is in a period of rapid expansion. Developers are required to provide undergrounded electrical service at their expense, as they are for water, sewer, roads, and certain other amenities. The City should retain ownership of the electrical delivery system, as it does with other utilities it provides in both the City limits and in the Area of City Impact. If a Local or Business Improvement District is created to underground electrical distribution systems, those systems should be retained and incorporated into a City system and not forfeited to Idaho Power. Third, the City should then use its retained earnings to implement a programmed undergrounding of all electrical distribution lines to customers. As these conversions take place, Idaho Power will be asked to cease delivery, and remove their overhead system. Fourth, the City should pursue condemnation of current underground systems in subdivisions within the City whose existence is directly attributable to City subdivision regulation requirements. It is rational to argue that Idaho Power did not expend any funds to build these systems and that their franchise agreement has expired. Therefore, the cost to acquire those systems should be substantially lower than that for a normal condemnation. The point being that the underground system was obtained free, and it was City action that provided it to Idaho Power. 3 Finally, the City has several options for maintaining the newly acquired system. First, the City could create an electrical utility department and provide funds to staff and supply it. It would contract with other utilities and contractors to provide emergency services. Second, the City could provide a limited staff, and contract for the majority of regular and emergency services. Third, the City could negotiate with Idaho Power or one of its competitors to wheel electricity to end customers over our lines, and as part of the wheeling contract, provide a cash payment and an agreement to maintain the lines. CONCLUSIONS McCall is in a unique position to capitalize on current expansion by entering the electrical utility arena. If market conditions change dramatically, the City could at any time divest itself of properties acquired, and make a profit. The City would be in charge of its own destiny in dealing with the undergrounding of the distribution system. The major costs to municipalities who contemplate condemnation of electrical distribution systems are those associated with the legal battle over condemnation, and the actual cash settlement to pay for the value of the system condemned. By using the strategy outlined above, the City could avoid most of these major costs and make the proposal financially viable. The benefits to the City would be the ability to finance an undergrounding program, and new revenue raised by operating a profitable enterprise. 4 Kirk and Betsy Hall Post Office Box 1943 1160 Meadows Road #12 McCall, Idaho 83638 208-634-4785 e-mail: betsyhall@aol.com i November, 1995 ~Q~y~ Some thoughts on your idea about the city taking ownership of new development's electrical distribution systems. Given the uncertainty of Idaho Power's future business focus, you might want to consider approaching them with a proposal like the following: Asa "test", Idaho Power and the City of McCall would agree that the City of McCall would: 1. Assume the ownership of the electric systems serving new developments within or near the city boundaries (within the impact zone?), 2. The city would purchase wholesale power from Idaho Power to serve these developments, The City would contract with Idaho Power for maintenance (this might be assumed by the city}, emergency sentice and technical support for a negotiated price (a fee-for-sen~ice would place too much risk on the city), 4. The City would charge a retail price that was equal to the price charged b}~ Idaho Power (One issue the city faces is that it would be difficult to charge differently for the power it pro~rides than that charged by Idaho Power.). 5. This test would be for a predetermined period of time say five or ten years, and 6. At the end of the period, the City could sell the system back to Idaho Power, Idaho Power could sell the remaining system serving McCall to the City or the City could negotiate with Idaho Power or others for another term sale to the then existing system. By this agreement, neither Idaho Power or the City of McCall would be setting a precedence as to the legal ability of a municipality to own new electric distribution systems installed by developers. The offer to Idaho Power would be that the City and Idaho Power would present a united front to other municipalities suggesting that they await the results of the test before they undertake a similar action. That agreement might remove Idaho Power's potential political response to a unilateral action by the city. For the City, such an approach would give you an opportunity to see if being an electric utility is what you wish to do with the ability to back out without extensive political loss. l~a~e ~"~ ____-- ~~~ IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES EO~EM{SS40N APPROVED I.1'.U.(:. N0.26, TARIFF NO 101 ORIGINAL SHEET NO. H-1 ~ 3 _ X95 ~ 1 _'95 ~Y~ ~ -~s~t-LZ`'",`' 3ECRETARIf RULE H DISTRIBUTION LINE EXTENSIONS This rule applies to requests for Electric Service under Schedules 1, 7, 9, 19, 24, 45 and 46 that require the construction, upgrade, relocation, or removal of Company-owned distribution facilities. This rule does not apply to transmission or substation facilities, or to requests for Electric Service which are of a speculative nature. 1. QEFINITIONS Additional Applicant is a person or entity whose request for Electric Service requires the Company to provide service from an existing Line Extension or Upgrade with a Vested Interest. Applicant is a person or entity whose request for Electrical Service requires the Company to provide service from distribution facilities that are free and clear of any Vested Interest. Application is a written document signed by an Applicant, Additional Applicant, or Subdivider that requests Electric Service from the Company. Averaae Unit Cost is the Company's average construction cost of distribution facilities. Average Unit Cost information will be updated annually and filed with the Idaho Public Utilities Commission. Company Betterment is the portion of the estimated cost of a Line Extension, Upgrade, and/or Relocation that provides a benefit to the Company, over and above the direct benefit to the Applicant, Additional Applicant, or Subdivider. Connected Load is the total nameplate kW rating of the Electric Loads connected for commercial, industrial, or irrigation service. Connected Load for residences is considered to be 25 kW for residences with electric space heat and 15 kW for all other residences. Conversion is the replacement of overhead electric distribution facilities with underground facilities. Extension Allowance is the portion of the estimated cost of a line Extension, Upgrade, and/or Relocation, paid for by the Company under the provisions of Section 5 of this rule. F'me Protection Facilities are water pumps and other fire protection equipment, served separately from the Applicants other Electric Load, which operate only for short periods of time in emergency situations and/or from time to time for testing purposes. Line Extension is any continuation of existing distribution facilities owned by the Company. Local Improvement District is an entity created by the appropriate city or county governing body, as provided by Idaho Code §50-2503, whose purpose is to provide for the study, financing and construction of aline Extension or a Conversion. The governing body shall assess property owners to recover the cost of the Line Extension or Conversion. A local Improvement District has discernible property boundaries. Point of Delivery for Line Extension Purposes is the point, as determined by the Company, where the electric facilities of the Company interconnect with the electric facilities of the Customer. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY I P U C NO 26 TARIFF NO. 101 ORIGINAL SHEET NO. H-2 RULE H DISTRIBUTION LINE EXTENSIONS (Continued) DEFINITIONS (Continued) Relocation is d change in the location of existing distribution facilities. IDAHO PUBLIC UTILITIES COMMISSI APPROVED EFFECTIV FE8 3 - '95 FEB 1- ~~'~~1Q-' ~ ~~ 9ECRIZi Subdivider is a person or entity requesting service for a residential Subdivision, commercial Subdivision, industrial Subdivision or mobile home court. Subdivision is the division of a lot, tract, or parcel of land into two or more parts for the purpose of transferring ownership or for the construction of improvements thereon, that is lawfully recognized and approved by the appropriate governmental authorities. Temporary Service is Electric Service of 18 months or less in duration. Terminal Facilities are the transformer or transformer bank, service conductors to the Point of Delivery, and meter. Unusual Conditions are construction conditions not normally encountered. These conditions may include, but are not limited to: frost, landscape replacement, road compaction, pavement replacement, chip-sealing, rock digging, boring, nonstandard facilities or construction practices, and other than available voltage requirements. rode is the alteration of existing distribution facilities by adding conductors, installing step transformers, increasing conductor size and/or changing voltage and transformers in order to serve the requested increase in load. Vested Interest is the claim for refund that an Applicant, Additional Applicant, or Subdivider holds in a specific portion of distribution facilities. The Vested Interest expires S years from the completion date of the Line Extension or Upgrade, unless fully refunded earlier. Work Order Cost is an item¢ed cost estimate performed by the Company for a specific Line Extension, Upgrade, and/or Relocation. 2. GENERAL PROVISIONS A. Ownership -The Company will own all distribution Line Extensions and retain all rights to them. B. Rights-of-Way -The Company will construct, own, operate, and maintain lines only along public streets, roads, and highways which the Company has the legal right to occupy, and on public lands and private property across which rights-of-way satisfactory to the Company may be obtained without cost to the Company. C. Service Conductors -The Company will determine the location and maximum length of Company service conductors. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTfLITIES COMMISSI01 APPROVED EFFECTIVE 1 P U C NO 26 TARIFF NO 101 ORIGINAL SHEET NQ. H-3 FEB 3 - '95 FEB 1- '95 RULE H DISTRIBUTION LINE EXTENSIONS (Continued) i'~E~•~- ~ -~'~9~~~'' GENERAL PROVISIONS (Continued) D. Metering -Company meters will be installed 5'/z feet above final grade and be accessible to the Company at all times. E. Removals -The Company reserves the right to remove any distribution facilities that have not been in use for one year. Facilities shall be removed only after providing 60 days written notice to the last Customer of record and the owner of the Property served, giving them a reasonable opportunity to respond. F. Properfv Specifications -Applicants, Additional Applicants, or Subdividers must provide the Company with final property spec cations as required and approved by the appropriate governmental authorities. These specifications may include but are not limited to: recorded plot maps, utility easements, and final construction grades. G. Undeveloped Subdivisions - When a Subdivider does not provide Electric Service to the individual spaces or lots within a Subdivision, the Subdivision will be classified as undeveloped and the Subdivider will not be entitled to refunds under Section 6.A. Connections within the undeveloped Subdivision will be treated as individual Applicants or Additional Applicants for payment, extension allowance, and refunding purposes. H. Mobile Home Courts -Owners of mobile home courts will install, own, operate, and maintain all termination poles, pedestals, meter loops, and conductors from the Point of Delivery. Credit for Trench. Digging and Backfill -The Company will credit the costs of a line Extension, Upgrade, and/or Relocation when an Applicant, Additional Applicant, or Subdivider provides for trench digging and backfill. This credit will not be subject to refund. J. Terminal Facilities -Terminal Facilities will be provided by the Company for permanent service connections when service is taken under Schedules 1 or 7 or when Secondary Service is taken under Schedules 9, 19, and 24. The Company will determine the time of the installation and the location of Terming{ Facilities within Subdivisions. 3. COST ESTIMATES A. The Company establishes cost estimates for distribution facilities by using either Average Unit Costs or Work Order Costs. B. Average Unit Costs are used for the following: 1. Underground residential Subdivisions not exceeding I50 average front footage. 2. Single residences. 3. Duplexes, triplexes and fourplexes. 4. Single commercial, industrial, and irrigation Applications with 100 kW or less of Connected Load. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1495 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY I P U C NO 26 TARIFF NO 101 ORIGINAL SHEET NO. H-4 RULE H DISTRIBUTION LINE EXTENSIONS (Continued) COST ESTIMATES (Continued) C. Work Order Costs are used for the following: IDAHO PUBLIC UTILITIES COMMISSiC APPROVED EFFECTIVE Ff B 3 - '95 F~61- '9 y~~ ~ ~~~ 1. Ali Upgrades, Relocations, and Removals. 2. Underground residential Subdivisions exceeding 150 average front footage and all overhead residential Subdivisions. 3. Condominiums, townhouses, and apartments with more than 4 living units building. 4. Commercial and industrial Subdivisions. 5. Single commercial, industrial, or irrigation Applications with over 100 kW of Connected Load. 6. Applications for Temporary Service. 7. Any other Applications not elsewhere specified. D. The Companys written cost estimate will be binding for 60 days after its submission to the Applicant, unless the Company agrees to a longer period of time. 4. PAYMENT A. Line Extension Payment -Applicants, Additional Applicants, and Subdividers will pay the Company for the estimated cost of a Line Extension less any applicable Extension Allowance (Section Sj and less any Company Betterment. This payment is subject to refund. B. upgrade Payment -Applicants, Additional Applicants, and Subdividers will pay the Company for the estimated cost of an Upgrade when additional conductors are added or when the Connected Load is 100 kW or more. The applicable Extension Allowance (Section 5j and any Company Betterment will be deducted from the payment. This payment is subject to refund. C. Relocation Payment -Applicants, Additional Applicants, and Subdividers will pay the Company for the estimated cost of a Relocation on the Applicant's, Additional Applicant's or Subdivider's property, less any applicable Extension Allowance (Section Sj and less any Company Betterment. Said allowance will only apply to the cost of work essential in providing service to the new or additional load. This payment will not become a Vested Interest. A Subdivider may be refunded this payment through new connections within the Subdivision under Section 6.A.3. All other Relocations will be paid by the Applicant, Additional Applicant, or Subdivider and are not subject to an Extension Allowance, Vested Interest, or Subdivider refunding. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMMISStO~ APPROVED EFFECTIVE ~P -~ t' NO 26 TARIFF NO 101 ORIGINAL SHEET NO. H-6 Ff B 3 - '95 FE61- '95 RULE H -~9EGRETAifi DISTRIBUTION LINE EXTENSIONS (Continued] !y~~'~ff`'"0t' PAY NT (Continued) K. Temaorary~ervice. 1. Applicants, Additional Applicants, and Subdividers will pay for the cost of providing Temporary Service. This payment is not refundable unless the service becomes permanent. If the service should become permanent, then the rules, allowances, and refunds for permanent service will apply. 2. When a Customer requests temporary service for construction in a residential Subdivision with existing underground or ovefiead electrical facilities, no charge will be made by the Company to the Customer under the following conditions: a. Location: 1. ,~nderaround -The Customer's pole shall be set within two linear feet of the Company's existing transformer or junction box. 2. Qvetfiead -The Customer's pole shall be set in a location that does not require more than 100 feet of #2 aluminum service conductor that can be readily attached to the permanent location by merely relocating it. b. The electrical facilities provided by the Customer on said pole shall be properly grounded, electrically safe, and ready for connection to Company facilities. c. The Customer shall obtain all permits required by the applicable state, county, or municipal governments and will provide copies or verification to the Company as required. d. The above conditions must be safist'ied prior to the Customer's request for connection. Refer to Schedule 6b, Article 7 for charges if these conditions are not satisfied. L. Terms of Payment -All payments listed under this section will be paid to the Company in cash 30 days prior to the start of Company construction, unless mutually agreed otherwise. M. Interest on Payment - If the Company does not start construction on a Line Extension. Upgrade, and/or Relocation. within 30 days after receipt of the construction payment, the Company will compute interest on the payment amount beginning on the 31st day and ending once Company construction actually begins. Interest will be computed at the rate applicable under the Company's General Rule F. If this computation results in a value of X10.00 or more, the Company will pay such interest to the Applicant, Additional Applicant or Subdivider. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMMISSION APPROVED EFFECTIVE ! P U C NO 26 TARIFF NO 101 ORIGINAL SHEET NO. H-7 FEB 3 - '95 FEB 1- '95 RULE H %y~~.~*Q- Q -y~-~a-~ECE2ET11RY DISTRIBUTION LINE EXi'ENSIONS (Continued) /~ 5. EXTENSION ALLOWANCES A. Subdivisions - An Extension Allowance will not be applied to the Line Extension, Upgrade, and/or Relocation costs for a Subdivision. Subdividers may recoup their payments only through the refunding provisions under Section 6.A of this rule. 8. Applicants and Additional Applicants -The Extension Allowances for Applicant and Additional Applicant connections are as follows: 1. Schedule 1 a. Service that includes electric water heating and permanent electric space heating - $2,000 per new connection. b. All other residential service - $1,500 per new connection. 2. Schedules 7 and 9 - $40.00 per kW of new or additional Connected Load. 3. Schedules 19 and 24 - $30.00 per kW of new or additional Connected Load. 4. Schedules 45 and 46 - $7.00 per kW of new or additional Connected Load. 6. REF ND A. $ubdivision Refunds A Subdivider will be eligible for Vested Interest refunds for payments for Line Extension and Upgrade construction outside the Subdivision. 2. A Subdivider wi11 be eligible for a refund from the Company when a permanent customer connects for service and occupies a lot or space inside the Subdivision. 3. The amount refunded to Subdividers, less any additional line Extension costs required to provide the requested service will be as follows: a. Residential Subdivisions - $1,200 per connection. b. Commercial and Industrial Subdivisions (1) $40.00 per kW of Connected Load for each Schedule 7 and 9 connection. (2) $30.00 per kW of Connected Load for each Schedule 19 connection. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY I P l~ C' NO 2 TARIFF NO 101 ORIGINAL SHEET NO H~ lDAHO PUBLIC UTILITIES COMMlSS40~ APPROVED EFFECTIVE FFB 3 - '95 FEB 1- '95 RULE H iy:~~rxe. ~ -~~~E.L2`se,~-SECRETARY DISTRIBUTION LINE EXTENSIONS (Continued) R F ND (Continued) 4. Refunds earned from connections inside the Subdivision will be applied as follows: a. The Subdivider will be refunded first for any eligible payments made for Line Extension or Upgrade construction inside the Subdivision. b. If the Subdivision becomes fully refunded for payments made for distribution facilities inside the Subdivision, additional refunds may be applied to any unrefunded payments for line Extension or Upgrade construction outside the Subdivision. B. Vested Interest Refunds 1. The Company will provide a refund payment to each Vested Interest holder in a Line Extension or Upgrade outside a Subdivision when an Additional Applicant connects to that Line Extension or Upgrade. 2. The refund payment will be based on the following formula: Linear Connected Original Line Refund = Footage x Load x Extension Ratio Ratio Cost Estimate a. The Linear Footage Ratio is the length of the jointly used facilities divided by the length of the vested distribution facilities. b. The Connected Load Ratio is the Connected Load of the Additional Applicant divided by the combined Connected Load of the Additional Applicant and all other Connected Loads with a Vested Interest in the Line Extension or Upgrade. c. The Original Line Extension Cost Estimate is the total construction cost of the project, excluding Terminal Facilities. 3. The Additional Applicant will pay the Company the amount of the Vested Interest refund(s) and any other refund due under a previous Line Extension schedule or rule, less any unused Extension Allowance earned under Section 5. 4. If the Extension Allowance of an Additional Applicant covers all applicable payments and still has a remaining balance, that surplus will be refunded among Vested Interest holders on a Connected Load basis until the surplus is exhausted or all Vested Interests are fully refunded. 5. Vested Interest refund payments may be waived by notifying the Company in writing. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H..fackson, Vice President, Distribution Effective -February 1, 1995 1221 West {daho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMMISSIO APPROVED EFFECTIVE •I P.U >r. NO. 2b, TARIFF NO 101 ORIGINAL SHEET NO. H-9 FEB 3 - '95 FEB 1- '95 RULE H DISTRIBUTION LINE EXTENSIONS !Continued) ~~'~~ ~ REF ND (Continued) C. Refund Limitations 1. Refunds will only be made for connections during the first ~ years following the completion date of the Line Extension or Upgrade construction. 2. Refunds will not exceed ~ ee rcent of the refundable portion of any party's cash payment to the Company. 7. ~ nCAL IMPROVEMENT DISTRICTS Unless spec~cally provided for under this paragraph, a Local Improvement District will be provided service under the general terms of this rule. The Company will provide a cost estimate and feasibility study for a Local Improvement District within 120 days after receiving the resolution from the requesting goveming 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 b months of the submission of the estimate for reasons not within the control of the Company. The goveming body issuing the resolution will pay the Company for the costs of preparing the cost estimate and feasibility study regardless of whether the line Extension or the Conversion actually takes place. 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, the Local lrnprovement District will pay the actual cost. If the actual cost exceeds the estimated cost, the Local improvement D'utrict will pay only the estimated cost. The goveming body will pay the Company within 30 days after the biN 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. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West fdaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES COMMISSI01 APPROVED EFFECTIVE ~ p ~~ ~' NO 26 Tev~c~ rtn ~n~ ORIGINAL SHEET NO. H-10 FEB 3 - '95 FEB 1- '95 RULE H DISTRIBUTION LINE EXTENSIONS (Continued) ~y~',fr>'~""'- ~ ~~9ECRE1'AR1 8. ~ INE EXTENSION AGREEMENTS When the Extension Allowance paid by the Company under the provisions of this rule equals or exceeds X75,000, the Applicant wdl be required to contract to pay, for a period of 5 years following the completion date of the Line Extension, an annual payment equal to the greater of the billings determined by application of the appropriate schedule or. A. Eighty percent of the Applicant's total annual bill as determined by application of the appropriate schedule; plus B. Twenty percent of the Extension Allowance granted the Applicant Each Line Extension, for which the Extension Allowance paid equals or exceeds $75,000, will require a separate Uniform Distribution Line Extension Agreement between the Applicant and the Company. Developers of multi-famiy residentia{ dwellings in which each unit is separately metered will be exempt from the requirement to enter into an agreement with the Company if the Extension Allowance paid equals or exceeds $75,000. 9. EXISTING AGREEMENTS This rule will not cancel existing written Agreements, including refunding provisions, between the Company and previous Applicants, Additional Applicants, or Subdividers. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 258$0 IDAHO POWER COMPANY IDAHO PUBLIC UTIL{T{ES COMMISS{ON gppRpyEp EFFECTIVE •{.P.U.'C. NQ,_2b TARIFF NO 101 ORIGINAL SHEET NO. H-11 RULE H DISTRIBUTION LINE EXTENSIONS FE8 3 - '95 FE$ 1-'95 ~'' ~ ..~~,a.lt~..4. SECRETARY IDAHO POWER COMPANY Uniform Distribution line Extension Apnerr~nf DISTRICT ACCOUNT NO THIS AGREIJ~AENT Made this day of 19 between whose billing address is hereinaffer called Customer, and IDAHO POWER COMPANY, A corporation with its principal office located at 1221 West Idaho Street, Boise, Idaho, hereinafter called Company: NOW THEREFORE, Tht porti~s apse as follows: 1. The Company Nn~ agree to provide facilities to supply volt, _ phase 8ectric Service for the Customer's facilities located at or near County of State of Idaho. 2. The Customer wiA agree to: (a) Make a cash advance to the Company of S as the Customer's share of the investment in service facilities; (b) Provide rights-of-way for the Gne extension at no cost to the Company, in a form acceptable to the Company; (c) Pay an annum minimum charge during the first 60 months following the Initial Service Date. The annual minimum charge wiA be the greater of (1) the total of the schedule biNings for the year or (2) ; plus 80 percent of the told schedule biGings for the year. fie total schedule billings will be computed in accordance with the rates and provisions of the schedules under which fhe Customer received service for that year. 3. This Agreement wiG not become bindng upon the parties until signed by both parties. 4. The initial date of delivery of power and energy is subject to the Companys ability to obtain required labor, materials, equipment, sa#isfactory rights-oF-way and comply with governmental regulations. S. The term of this Agreement will be for 5 years from and after the Initial Service Date thereof. 6. This Agreement v+n'q be bindng upon the respective successors and assigns of the Customer and the Company, provided however, that no assignment by the Customer wiG be effective without the Companys prior written consent. The Company's consent ~nnG not be unreasonably withheld. 7. This Agreement is subject to valid laws and to the regulatory authority and orders, rules and regulations of the Idaho Public UtiFties Commission and such other administrative bodies having jurisdiction as well as Idaho Power Companys Rules and Regulations as now or may be hereafter modfied and approved by the Idaho Public Utilities Commission. 8. The Companys Rule H, any revisions fo that rule, and/or any successor rule is to be considered as part of this Agreement. 9. In any action at law or equity commenced under this Agreement and upon which judgment is rendered, the prevailing party, as part of such judgment, wiG be entitled to recover all costs, includng reasonable attorneys fees, incurred on account of such action. (APPROPRIATE SIGNATURES) Date 19 W.O. No, Initial Service Date {DAHO Issued by IDAHO POWER COMPANY lssued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 IDAHO POWER COMPANY IDAHO PUBLIC UTILITIES EOFE ,~ N APPROVED •{ P U`C NO 2b TARIFF NO 101 ORIGINAL SHEET NO. H-5 FEB 3 - '95 FEB 1-'95 RULE H DI~RIBUTION LINE EXTENSIONS (Continued) %':~ ~ '~'~'~'"'"f~ PAYMENT (Continued) D. Payment for Vested Interest -Additional Applicants or Subdividers requesting service from a Line Extension and/or Upgrade with a Vested Interest, will make a cash payment in accordance with Section 6.A of this rule. This payment is subject to refund. E. Engineering Costs -Applicants, Additional Applicants, and Subdividers may be required to prepay engineering costs for Line Extension, Upgrade, andlor Relocation projects that are unusually large, complex, or of a questionable nature. This prepayment will be credited as a contribution to the Line Extension, Upgrade, and/or Relocation payment. F. Reengineerina Costs -Applicants, Additional Applicants, and Subdividers will be required to prepay all reengineering costs. This payment is not subject to refund or Extension Allowance. G. Unusual Conditions -Applicants, Additional Applicants and Subdividers will pay the Company the additional costs associated with any Unusual Conditions related to the construction of a Line Extension, Upgrade, or Relocation. This payment, or portion thereof, will be refunded to the extent that the Unusual Conditions are not encountered. Unusual Conditions payments for Line Extensions and Upgrades will also be refunded, under the provisions of Section b, if the Unusual Conditions are encountered, The applicable Extension Allowance wiN be applied against all payments for Unusual Conditions. H. Qverhead-Underground Differential -Applicants, Additional Applicants, and Subdividers will pay the Company the difference between the estimated cost of an underground service and the cost of an overhead service. This payment is not subject to refund or Extension Allowance. Primary Metering -Applicants, Additional Applicants, and Subdividers will pay for the cost of primary metering not required by the Company. This payment is not subject to refund or Extension Allowance unless at the Company's discretion, primary metering subsequently becomes necessary for service under Schedules 9 and 19. J. Fire Protection Facilities -The Company will provide service to Fire Protection Facilities when the Applicant pays the full costs of the Line Extension and/or Upgrade, including Terminal Facilities, less Company Betterment. These costs are not subject to a Line Extension Allowance, but are eligible for Vested Interest Refunds under Section 6.6. IDAHO Issued by IDAHO POWER COMPANY Issued -February 3, 1995 D. H. Jackson, Vice President, Distribution Effective -February 1, 1995 1221 West Idaho Street, Boise, Idaho Per IPUC Order No. 25880 ~ ~ ~ . ~ Gary Shimun City Manager, City of McCall PO Box 986 McCall, Idaho 83638 Dear Gary June 26, 1997 It is my understanding that the McCall City Council has reviewed both the Memorandum of Understanding for the installation of underground power lines in the City of McCall and the proposed Franchise Ordinance. In our recent conversations you have indicated that there were just two points that the Council had a question on and would like clarified. In the Memorandum of Understanding under Section 4, it states that if the City requests that IPCo install the distribution power line underground based on the binding estimate, it will pay IPCo the amount of the binding estimate with thirty (30) days after IPCo issues the binding estimate. IPCo will then proceed with the installation of the distribution power line. The Council's concern, as I understand if, is what happens in the event that construction is delayed, for whatever reason? Does Idaho Power just hang onto the money and wait until it can begin construction or just how will this be handled? In the Witnesseth section of the Memorandum of Understanding there is a section that says that IPCO is willing to provide for the installation of underground distribution power lines in the City's rights-of-way, consistent with its standard undergrounding policies, including Rule H. Rule H is a filed tariff with the Idaho Public Utilities Commission and applies to new service attachments and distribution line extension installations and alterations. In the General provision section of the current Rule H, dated May 24, 1997, paragraph J deals with interest on payment. If the company does not start construction on a line extension and /or relocation within 30 days after receipt of the construction payment, the Company will compute interest on the payment amount beginning on the 31St day and ending once Company construction actually begins. Obviously, we do not need to tell you that the window of opportunity for construction in the McCall area is a small one. When considering the types of conversion projects that we would be undertaking, much planning and scheduling would have to take place in order to make sure that we accomplish the conversion from overhead to underground and that we are able to do so with a minimum of inconvenience to our customers. The second issue that the Council would like clarified was the language in the Franchise that included present and future street, alleys, highways, and other public places. It is my understanding that the Council has some concerns about including other public places in the agreement. It stems from a fear that Idaho Power may feel that they have the right to just go out and build power lines anywhere they want within the Corporate limits of the City of McCall just because they have a Franchise agreement. This seems to be an operational issue as much as a legal issue. In section 3 of the proposed Franchise it reads that upon request of the City, the Grantee shall relocate its facilities as necessary with the present and future streets, alleys, highways and other publics places owned by the City. The City shall have no responsibility for the costs of such relocation's. By having other public places in the language you are also including any line constructed in these public places in the relocation section of the agreement. With respect to the construction of new line within the Corporate limits of the City of McCall, it is my understanding that we go through a permitting process with the City to ensure that the City has an understanding as to the location of new facilities being installed by Idaho Power. It would appear to me to be very difficult for Idaho Power to construct line in the other public places without the knowledge and approval of the City of McCall. I hope this has helped to clarify some of your concerns. Please let me know if we can be of any other service. Sincerely Yours, Kelly R. Edwards ORDINANCE NO. "AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328, 50-329 AND 50-329A GRANTING A 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 McCALL, IDAHO, ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE." BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF McCALL, IDAHO THAT; SECTION 1. 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, (subject to the rights of the City set forth in Section 14 hereof), privilege and franchise for a period of twenty (20) 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, including the nonexclusive right to physically locate and maintain telephone, cable, fiber optics or other communications facilities of the Grantee or other parties, (provided, that Grantee shall comply with the City's requirements for cable system franchises) all 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, subject to Section 9 hereof. All such electric utility property and facilities now maintained by the Grantee within the streets, alleys, highways and other public places within the corporate limits of the City shall be deemed covered by this ordinance as provided herein. SECTION 2. All of the Grantee's electric property and facilities in and upon the present and future streets, alleys, highways and public places within the corporate limits of the City 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 applicable state and federal regulations and all construction standards presently in effect by the Idaho Public Utilities Commission or adopted by that Commission during the term of this franchise agreement. SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as necessary within the present and future streets, alleys, highways and other public places owned by the City. The City shall have no responsibility for the costs of such relocations. The Grantee shall bear the cost of relocating its facilities at the City's request, unless the facilities are to be relocated for the benefit of a third party, in which case the third party shall pay the costs of relocation. In the event federal, state or other funds are available in whole or in part for utility relocating purposes, the City shall apply for such funds and the Grantee will be reimbursed to the extent any such funds are actually obtained. SECTION 4. It shall be lawful for the Grantee to make all needful or convenient excavations and/or installations in any of the present and future streets, alleys, highways and other public places within the corporate limits of the City for the purpose of erecting and maintaining the posts, poles, towers, 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; provided that when the Grantee or any person or corporation under the authority of this franchise, shall disturb any of said streets, alleys, highways or other public places for the purposes aforesaid, he, it or they 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, highway 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. SECTION 5. The City shall have the right and privilege to string and maintain wires for its internal communications for its fire, police, airport and other services upon the poles and other facilities erected and maintained by the Grantee hereunder, subject to the Rules and Regulations of the Idaho Public Utilities Commission. 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 times indemnify and hold the City, its officers, employees and agents, harmless from any and all expenses 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 properly or facilities. SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee shall have any rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidencing General Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal Injury. Such insurance shall have minimum limits of $1,000,000 per occurrence. The City of McCall shall be named as an "Additional Named Insured" under Grantee's insurance policy. Should the minimum limits of insurance as set forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any similar legislation, the Grantee shall be required to provide the City with a new Certificate of Insurance evidencing the higher limits upon the City's request. SECTION 8. The electric service to be furnished to the public hereunder, and all rates and charges therefor, and all regulation of the Grantee hereunder, shall at all times be subject to all rules, regulations and orders that may be lawfully prescribed by the Idaho Public Utilities Commission or by any other governmental authority now or hereafter having jurisdiction over such matters. During the term of this franchise, Grantee shall at all times assure that customers within the City have access to customer service from the Grantee as required by the Idaho Public Utilities Commission. SECTION 9. As compensation for the right, privilege and franchise hereby granted, Grantee agrees to pay to the City on or before the 30th day of January, April, July and October, an amount equivalent to one percent (1%) of Grantee's "gross revenues" for the preceding calendar quarter. For purposes of this Section, "gross revenues" shall mean the amount of money billed by the Grantee for the electricity it sells within the corporate limits of the City to customers, less uncollectibles. The City shall provide appropriate information to the Grantee to allow the Grantee to identify which of its customers are located within the corporate limits of the City for purposes of paying franchise fees. Grantee shall not be responsible for any failure to pay franchise fees which results from deficiencies in such information provided by the City. In the event the City annexes a new area into its corporate limits, the terms of this Section 9 regarding franchise fees shall not apply to the annexed area until sixty (60) days after the City has supplied the Grantee with appropriate information for the identification of the Grantee's customers within the annexed area. The Grantee's franchise fee payment obligations hereunder shall commence with the start of the Grantee's first full billing cycle following the effective date of this ordinance; provided, that the Grantee must first receive approval from the Idaho Public Utilities Commission for the collection of the franchise fee in the rates charged by Grantee. SECTION 10. The City shall have the right during the term of this franchise agreement to increase the franchise fee hereunder up to three percent (3%), by obtaining approval of a majority of voters of the City voting on the question at an election held in accordance with chapter 4, title 50, Idaho Code. Any such vote to increase the franchise fee hereunder shall provide that the increased franchise fee will apply to any electric service provider (other than the City) who utilizes the City's streets, alleys or other public places to provide electrical service within the City, during the term of this franchise agreement. SECTION 11. The Grantee shall keep accurate books of account for the collection of the franchise fees hereunder 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 plupose of determining gross revenues under Section 9 above. SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including, but not limited to, taxes, fees or charges related to easements, franchises, rights-of- way, utility lines and equipment installation, maintenance and removal during the term of this franchise agreement. 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 pruning of all trees which overhang the present and future streets, alleys, highways and other public places within the corporate limits of the City, 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. However, except in an emergency, no pruaung shall be undertaken without giving the occupant of the adjacent property written or oral notice that such pruning will be performed. SECTION 14. In consideration of Grantee's undertaking hereunder as evidenced by its acceptance hereof, the City agrees not to engage in the business of providing electric service during the life of this franchise or any extension thereof in competition with the Grantee, its successors and assigns; but nothing herein contained shall be construed or deemed to prevent the City from exercising at any time any power of eminent domain granted to it under the laws of the State of Idaho. The City shall not grant a franchise to another electric service provider during the term of this franchise agreement unless the electric service provider has received approval to provide electrical service within the City from the Idaho Public Utilities Commission, and the City has imposed the same franchise fee on the electric service provider as paid by the Grantee. 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 Utilities 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. SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise and grant or any material portions thereof or the failure promptly to perform any of the provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of such violation, failure or default; however, this provision shall not prevent the Grantee from submitting such question of violation or forfeiture to the appropriate forum (which may include the district court having jurisdiction or the Idaho Public Utilities Commission) for determination. SECTION 17. Sale, assignment or lease of this franchise is prohibited without notification to the City. SECTION 18. The Grantee shall assume the cost of publication of this franchise as such publication is required by law. SECTION 19. The Grantee shall within thirty (30) days after final passage of this ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION 20. Inasmuch as the Grantee has constructed and now is maintaining and operating the electric utility property and facilities in and upon the streets, alleys, highways, and public places in the City, 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 PASSED AND ADOPTED by the Council of the City of McCall this day of . 19 APPROVED by the Mayor this day of , 19 ATTEST: Mayor City Clerk (Seal) ACCEPTANCE IDAHO POWER COMPANY, as the franchisee, accepts the franchise set forth in the above Ordinance and agrees to abide by the terms and conditions thereof. DATED this day of 19 By: ATTEST: D. H. Jackson Vice President -Retail Services Secretary (Seal) CITY OF MCCALL September 26, 2008 Layne Dodson Idaho Power Company PO Box 70 Boise, ID 83707 Re: Increase Franchise Fees for the City of McCall Dear Mr. Dodson: The City of McCall would like to initiate discussions regarding the franchise agreement to increase the fee from 1% to 3%. The purpose of increasing the franchise fees is to generate more revenue to underground utilities in the City and make our community more attractive. The City recognizes that the process will include a public hearing, and the City will be responsible for answering citizens' questions and comments about the increase in fees. Please let me know the next steps to modify the current franchise agreement. We look forward to working with you on this effort. Sincerely, CITY OF MCCALL e~- ert Kuleza Mayor 216 East Park Street . McCall, Idaho 83638 . (208) 634-7142 . Fax (208) 634-3038