20031008Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:KEITH HESSING
DATE:AUGUST 13, 2003
RE:UNITED WATER FRANCHISE FEES PAID TO BOISE CITY
On August 6, 2003, United Water Idaho filed a Tariff Advice with the Commission
requesting an increase in rates within the City of Boise.. The increase would allow United Water
to recover the cost of an increase in franchise fees that United Water is required to pay the city
beginning October 2003. The franchise fee was increased from 3 % to 4 % by Boise City
Resolution No. 17692 that is attached to this Decision Memorandum with the Company s filing.
COMMISSION DECISION
The Staff recommends that Schedule 8, Sheet lOB, be approved with an effective date of
October 1 , 2003 as proposed by the Company. Does the Commission agree?
udmemoslun i ted waterbo i seci ty
DECISION MEMORANDUM AUGUST 13, 2003
[phone]
[phone] (Fax)
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702s
Re:United Water Idaho Inc.
Schedule 8, Sheet lOB
Dear Ms. Jewell:
A", I (j(/.vi .
McDevitt & Miller L~fEeL:tVEDLawyers f:LEO
420 W. Bannock Street 2uO31\UG -6 ~M B~ 39
O. Box 2564-83701 .
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q. i T Chas. F. McDevittBoise, Idaho 83702
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;~~,'Q:;!(',. ~1)eanJ. (Joe) Miller
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August 4, 2003
Transmitted herewith is a proposed revision to United Water Idaho s Schedule 8, Sheet 1 OB.
The revision increases the franchise fee assessed by the City of Boise from 3% to 4%. Attached
also is a copy of Boise City Resolution # 17692, by which the city increased the Franchise Fee.
The Ordinance takes effect on October 1 , 2003; accordingly, an effective date for this tariff
change of October 1 2003 is requested.
. DJM/sg
Enclosures
Greg WyattMark..ilinn~
Very truly YOUI;S
McDEVITT & 11ILLER LLP
~,
Miller
Sheet No. lOB
UNITED WATER IDAHO INC.
SCHEDULE NO.
MUNICIPAL FRANCHISE FEES
Pur ose:
The purpose of this schedule is to set forth the charges such
license, franchise, business occupation, operatingr excise, use of
street taxes or other charges that are impos~d on the Company by
munlcipal corporations and billed separately by the Company to its
Customers wi thin the corporate limits of a municipality.
licability:
This schedule is applicable to the gross operating revenues
received by the Company from the s ale of water and water services
within the corporate limits of the city.
Rate:
The rates and charges for the sale of water and water services
provided unde~ the Company s schedules will be proportionately
increased by the following charge within the municipality on and
after the effective date of the applicable municipal ordinance.
The charges will be shown as a separate item on the customerbilling.
Munici ali ty Ordinance No.Effective Date Charge
Ci ty of Boise 5623 October I, 2003
Ci ty of Eagle 414 May 15, 2003 1. 0%
Issued:Effective:
Issued by:UNITED WATER IDAHO INC.
By:
Gregory P. Wyatt, President
07/31/2003 10: 57 FAX 20~3627069 United Water Idaho (gj003
- '
RESOLUTION 17-692
:BY THE COUNCll.,:BISTE~L:rrI', FORL~Y, JORDAJ."'-, fyIAPP,MASON AND SHEALy
A RESOLUTION INCREASING THE FRANCHISE RATE CHARGED TO UNITED
AIER IDAHO FROM 3% TO 4% OF THE GROSS OPERATING REVENUES OFUNTIED WATER RECEIVED FROM THE SALE OF WATER AND WATER
SERVICES WITHIN THE BOISE CITY CORPORATE
~S; AND PROVIDING ANEFFEC'J)VE DATE.
, .
. ~~:AS.oJ1A.pri-J1-, 19-95, ptIrstWit to OfdliiaI;i.ce No. 5623 , the Bosie City Cciwid:1 '.approved a non-exclusive Franchise Agreement with United Water Idaho to construct, extend,
ilnprove, maintain and operate a water utility system in the City of Boise; and
WHEREAS.. the Franchise Agreement is for a period of 21 years ending November 12015; and
, WHEREAS, Section 7 of the Franchise Agreement required United Water Idaho to paythe City of Boise each month an amount equal to 3% gross operating revenue received during the
preceding month fi:om the sale of water and water services within the corporate limits ofBosie. City; and
WHEREAS, Section 7 of the Franchise Agreement also provided that the 3% franchise'rate may be changed to 4% during the tepn of the Agreement upon paSsage of a resolution by the
Boise City Council; and
WHEREAS, the Boise City Council has determined that an increase in the franchise rate
is necessary to provide revenue for water-related and other critical programs managed
:tJy theCity.
' "
, NOW THEREFORE, BE IT RESOLVED BY THE MAXOR AND COUNCIL OFTHE CITY OF BOISE CITY, IDAHO:
Section 1. That pursuant to Section 7 of the April 11, 1995 Francbise Agreement entered
mto between 'the (;;ity of Boise City and United Water Idaho the monthly ftancbise rate paid
bY.
United Water Idaho to Boise City is hereby increased from 3 % to 4% of the gross operating
revenue received during the preceding month from the sale of water and water services within the
co:rporate limits ofBosie City.
Section 2. That this Resolution shall be in full force and effec~ on October 1, 2003.
ADOPTED by the Council of the City o~Boise City, Idaho, this 22ND
2003.
day of .July
I: LEGALDOC\RESO-ORD\2003 \RESO2003 \UNITEDWAr~rNCREASE ,. R-328-
07/31/2003 10: 57 FAX [phone] United Water Idaho ~004
APPROVED by the Mayor of the City of Boise City, thisJuly 2003.
??wn day of
ATTEST: -A..PPROVED:
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r: \LEGALDOC\RESO-ORD\2 003 \RESO2 003 \UNITEDWAXERRATEINCREASE R-328-03