20030818_587.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER 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 2003 as proposed by the Company. Does the Commission agree?
udmemos/un i tedwaterboiseci ty
DECISION MEMORANDUM AUGUST 13 , 2003
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Chas. F. McDevittBoise, Idaho 83702 T!l
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August 4, 2003
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702s
Re:United "\XI ater Idaho Inc.
Schedule 8, Sheet lOB
Dear Ms. Jewell:
Transmitted herewith is a proposed revision to United Water Idaho s Schedule 8, Sheet lOB.
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.
Very truly yours
McDEVITT & MILLER LLP
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Enclosures
Greg Wyatt
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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
license, franchise, business occupation, operating, eXClse, use of
street taxes or other charges that are imposed on the Company by
munlcipal corporations and billed separately by the Company to its
Customers wi thin the corporate limits of a municipality.
Applicability:
This schedule is applicable to the gross operating revenues
received by the Company from the sale of water and water serVlces
within the corporate limits of the city.
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.
Municlpali ty Ordinance No.Effecti ve Date Charge
ci ty of Boise 5623 October I, 2003
Ci ty of Eagle 414 May 15, 2003 1. 0%
Issued:Effecti ve:
Issued by:UNITED WATER IDAHO INC.
By:
Gregory P. Wyatt, President
07/31/2003 10: 57 FAX [phone] Uni ted Water Idaho 141003
RESOLUTION 17.692
BY THE COUNCIL:BISTE~LDT FORL"fEY, JORDAl" fylAPP,MASON AND SHEALY
A RESOLUTION INCREASING THE FRANCmSE RATE CHARGED TO UNITED
WATER 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 LIl\1ITS; AND PROVIDING ANEFFECTIVE DATE.
. WHER:E-AS onApriI-1-, 1995 pUrsuant to Ofdilicn;ice No. 5623, the Bosie City CounCil approved a non-exclusive Franchise Agreement with United Water Idaho to construct, extendimprove, maintaill 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 ofllie Franchise Agreement required United Water Idaho to pay
the City of Boise each month an amount equal to 3% gross openltIDg revenue received during the
preceding month iTom the sale of water and water services within the corporate limits ofBosieCity; and
WHEREAS, Section 7 of the Franchise Agreement also provided that the 3% ftanchise'rate may be changed to 4% during the term 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 rateis necessary to provide revenue for water-related and other critical programs managed by theCity.
. NOW THEREFORE, BE IT RESOLVED BY THE MA"XOR AND COUNCIL OFTHE CITY OF BOISE CITY, IDAHO:
Section 1. That pursuant to Section 7 ofthe April 11 , 1995 Franchise Agreement entered
into between the City of Boise City and United Water Idaho the monthly franchise rate paid by
United Water Idaho to Boise City is hereby increased ITom 3% to 4% ofllie gross operating
revenue received during the preceding month from the sale of water and water services within the
corporate limits ofBosie City.
Section 2. That this Resolution shall be in full force and effect on October 1 , 2003.
ADOPTED by the Colmcil of the City of Boise City, Idaho, this 22BD
2003.
day of July
I; LEGALDOC\RESO-ORD\2003 \RESO2003 \UNITEDWATERRATEXNCREASE . R-328-
07/31/2003 10:57 FAX [phone] United Water Idaho
APPROVED by the Mayor of the City of Boise City, this ??"NT)day of
July 2003.
ATTEST:.A-PPROVED:
I4J 004
I: \LEGALDOC\RESO-ORD\2 003 \RESO2 003 \ UNI TEDWATERRATEINCREASE 32 8 -