20160912_5068.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CURTIS THADEN
DATE:SEPTEMBER 9,2016
RE:IDAHO POWER PROPOSAL TO REVISE SCHEDULE 95 (TARIFF
ADVICE NO.16-03)
BACKGROUND
On September 1,2016,Idaho Power submitted Tariff Advice No.16-03 to revise Idaho
Power’s Electric Service Schedule 95 for the City of Wendell.The existing one percent
franchise fee remains unchanged.
The proposed franchise fee agreement was approved by the City of Wendall on August
18,2016,as authorized in the attached City of Wendall Ordinance 529.The agreement was
accepted by Idaho Power Company on August 30,2016.The agreement imposes a one percent
franchise fee from the sale of electricity within the corporate limits of the City of Wendall and
remains in effect until the end of the ten (10)year franchise agreement unless amended in the
manner set forth by Ordinance 529.Idaho Power requests an effective date of
September 29,2016.
Idaho Title 50,Chapter 3,§50-329A allows cities to establish franchise fees assessed
upon a public service provider up to one percent without the consent of the public service
provider or the approval of a majority of voters of the city voting on the question at an election.
Franchise fees up to three percent are allowed with the consent of the public service provider or
the approval of a majority of voters of the city voting on the question at an election.
DECISION MEMORANDUM -1 -SEPTEMBER 9,2016
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff change,the franchise agreement for the City of
Wendall,and the franchise fee requirements under Idaho Title 50,Chapter 3 §50-329A.Staff
recommends that the Commission accept Idaho Power’s proposed revision to Electric Service
Schedule 95 Municipal Franchise Fees.Staff recommends an effective date of September 29,
2016.
COMMISSION DECISION
Does the Commission wish to accept Idaho Power’s proposed revision to Electric Service
Schedule 95 with an effective date of September 29,2016?
Curtis Thaden
i:udmemosrrariffAdice No,16-03
DECISION MEMORANDUM -2-SEPTEMBER 9,2016
Idaho Power CompanySb4eenthSeventeenth Revised Sheet No.95-2
Cancels
I.P.U.C.No.29,Tariff No.lotF1fteenthSixteenth Revised Sheet No.95-2
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective Date
MuniciaIity Ordinance No.Of Charge Charge
City of Fairfield 253 August 29,2013 1%
City of Filer 574 September 30,2009 2%
City of Fwitland 393 March 21,2001 1%
City of Garden City 850-06 September 27,2006 3%
City of Glenns Ferry 452 March 24,1999 1%
City of Gooding 689 December 2,2014 1%
City of Grand View 99-4 January 21,2000 1%
City of Greenleaf 136 October22,1999 1%
City of Hailey 1057 September 26,2010 1%
City of Hazelton 238 May 29,2009 1%
City of Hollister 2-2009 October 28,2009 1%
City of Idaho City 252 September25,1996 1%
City of Inkom 96-1 95 July 26,1996 1%
City of Jerome 1137 April 1,2015 1%
City of Ketchum 1092 May 18,2012 3%
City of Kimberly 622 May 1,2015 1%
City of Leadore 32 June 20,2000 1%
City of McCall 862 April 29,2009 3%
City of Melba 212 February 28,2007 1%
City of Meridian 800 December 22,1998 1%
City of Middleton 287 October 22,1999 1%
City of Mountain Home 1251 October 24,1996 1%
City of Nampa 3980 October 1,2012 1.5%
City of New Meadows 306-06 May 30,2007 3%
City of New Plymouth 331 January 31,2011 15%
City of Notus 259 August 28,2007 1%
City of Oakley 12-12-01 March 30,2012 1%
City of Pocatello 2956 November 2,2015 1%
City of Richfield 175 March 27,1996 3%
City of Shoshone 514 June 27,2008 1%
City of Star 196 August 20,2009 1%
City of Twin Falls 2927 March 31,2008 3%
City of Wendell 46G529-2016 Nevembcr2O,2006Sentember29,2016
1%
City of Wilder 486 May 27,2004
IDAHO Issued by IDAHO POWER COMPANY
Issued —OctobcrSeptember 1,20f6Gcegorj ‘A’.SaidTimothy E.Tatum,Vice President,Regulatory Affairs
Effective—November-2September29,2016 1221 West Idaho Street,Boise,Idaho
Advice No.15 1216-03
ORDINANCE NO.529-2016
“AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328,50-329 AND 50-329A
GRANTING A FRANCHISE TO IDMIO 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 WENDELL,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 (10)YEARS,INCLUDING THE NONEXCLUSIVE BIGHT 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 WENDELL,
IDAHO THAT;
SECTION 1.The City of Wendell,Idaho (hereinafler 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 faith in Sectiqp 14 hereof),
privilege and franchise for a period of ten (10)years from and after?z%t.isV I,?&/
however,with the right to amend by mutual agreement in accordanac/with Seeñon 15,to
construct,maintain and operate in and upon the present and ffiture 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 Utis 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 ofthis 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 thuds are actually obtained.
SECTION 4.It shall be lawful for the Grantee to make all needful or convenient
excavations and/or instailaLions 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 afler 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 Qonthtion 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 xtes 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,and against
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.
2
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,Properly Damage
and Personal Injury.Such insuranc shall have minimum limits of $1,000,000 per occunence.
The City of Wendell 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
$l,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 2.The electric service to be furnished to the public hereunder,and all rates
and charges therefore,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 mailers.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.If authorized by formal adoption of city resolution,as compensation for
the right,privilege and franchise hereby granted,Grantee aees 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 uncolleetibles.The City shall provide
appropriate infonnation 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 the consent of the
Grantee or the 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.
3
SECTION 11.The Grantee shall keep accurate books of account for the collection of the
franchise fees for a period not to exceed three years 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 frees which overhang the present and fifture 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 frees 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 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 confened 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 ofCity 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
4
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.Sak,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 titis franchise in writing signed by its proper
officers and attested by its corporate seal.
SECTION 20.The existing franchise agreement between the City and Grantee set forth
in Ordinance No.460,dated August 1,2006,shall terminate upon the adoption and acceptance
of this ordinance.
SECTION 21.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 Ai Met )YJ 24/4.
ADOPTED by the Cocil of the City of Wendell this t B day of
___________
,2016.
Q6.
PASSED AND
APPROVED by the Mayorthis I day of
City Clerk
(Seal)
5
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.
DATEDthisOtayof ,2016.
By:AD
Lisa Grow
AflEST:Sr.Vice President —Operations
Secretar
(Seal)
6