20030528_488.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: SCOTT WOODBURY
DATE: MAY 22, 2003
RE:UNITED WATER IDAHO-TARIFF ADVICE UWI SCHEDULE 8, SHEET lOB
1 % FRANCHISE FEE-CITY OF EAGLE
On May 2003 United Water Idaho, Inc. (United Water; Company) filed a tariff
advice (Schedule 8, Sheet lOB) adding the City of Eagle to the list of municipalities that assess a
franchise fee to United Water Idaho. Accompanying the Company s filing is a copy of a
Franchise Agreement between United Water and the City of Eagle, dated May 13 , 2003, and a
copy of City of Eagle Ordinance No. 414, dated September 10, 2002.
The City of Eagle Ordinance and the Franchise Agreement both contain the following
clause:
The Grantees franchise fee payment obligations hereunder shall
commence with the start of the Grantees ' 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 and the rates charged by Grantee.
To harmonize the billing cycle, United Water requests an effective date of May 15, 2003. The
first billing cycle would be the two months commencing approximately May 23, 2003. The
proposed effective date will enable the Company to begin payments to the City of Eagle in July,
rather than September.
Commission Decision
Staff recommends that the submitted United Water tariff advice (UWI Schedule 8
Sheet lOB) amending the Company s municipal franchise fee schedule to add the City of Eagle
be approved for effective date May 15, 2003. The City of Eagle is assessing a 1 % franchise fee.
DECISION MEMORANDUM
As reflected in the Company s tariff schedule, the franchise fee charges will be shown as a
separate item on a customer s billing. Does the Commission concur with the recommended
approval?
Scott Woodbury
Vld/M:UWI Franchise Fee
DECISION MEMORANDUM
McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 West Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
Chas. F. McDevitt
Dean J. (Joe) Miller
May 21 2003
Via Electronic Mail
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re:City of Eagle--United Water Idaho Inc. Franchise Agreement
Dear Ms. Jewell:
Transmitted herewith is a proposed revision to United Water Idaho s Schedule 8, Sheet lOB.
The revision adds the City of Eagle to the list of municipalities that assess a franchise fee to
United Water Idaho.
You will note that an effective date of May 15, 2003 is requested. The City of Eagle Ordinance
and the Franchise Agreement both contain the following clause:
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. "
As it happens, with respect to the Eagle customers affected by the franchise fee, their meters are
read and the billing cycle ends about the 23rd of the month. An effective date after May 23rd would be
into the next billing cycle. Pursuant to the language of the ordinance/agreement UWID would not start
collecting and making franchise payments until the next full billing cycle (July-September).
This could be avoided if an earlier effective date was adopted. UWID is proposing May 15
United, of course, would not retroactively bill any customer back to that date, but this would serve to
harmonize the billing cycle and the effective date. Thereby, the first full billing cycle would be the two
months commencing approximately May 23rd and United could begin payments to the city in July, rather
than September.
Ms. Jean Jewell
May 21 2003
Page 2 of 2
I am also providing a copy of the City of Eagle Ordinance and the executed Franchise Agreement
for review by staff.
Very truly yours
McDEVITT & MILLER LLP
Dean J. Miller
DJM/sg
Ene!.
Greg Wyatt, United Water Idaho
Susan Buxton, Eagle City Attorney
Sheet No. lOB
UNITED WATER IDAHO INC.
SCHEDULE NO.
MUNICIPAL FRANCHISE FEES
Purpose:
The purpose of this schedule is to set forth the charges such as
license , franchise, business occupation, operating, excise, use of
street taxes or other charges that are imposed on the Company by
municlpal corporations and billed separately by the Company to its
Customers within the corporate limits of a municipality.
App licabilit
This schedule is applicable to the gross operating revenues
received by the Company from the sale of water and water services
within the corporate limits of the c~ty.
Rate:
The rates and charges for the sale of water and water services
provided under the Company s schedules will be proportionately
increased by the following charge wi thin the municipality on and
after the effective date of the applicable munlcipal ordinance.
The charges will be shown as a separate item on the customerbilling.
Munici ali t Ordinance No.Effecti ve Date Char
Gi~ty of Boise 5623 November 1, 1995
City of Eagle 414 May 15 , 2003 1. 0%
Issued:Effective:
Issued by:UNITED WATER IDAHO INC.
By:
Gregory P. Wyatt , President