20050131_1079.pdf

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DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:MICHAEL FUSS
DATE:JANUARY 28, 2005
RE:IDAHO POWER TARIFF ADVICE TO INCREASE THE CITY OF
JEROME'S FRANCHISE FEE.
On January 25 2005, Idaho Power Company filed a Tariff Advice with the Commission
requesting an increase in the franchise fee within the City of Jerome, Jerome County, Idaho. The
increase would allow Idaho Power to collect the franchise fees that Idaho Power is required to
collect from customers and remit to the city beginning February 28, 2005. The 1 % franchise fee
is the result of City of Jerome Ordinance No. 959 passed and adopted by the Council of the City
of Jerome on December 21 , 2004 and approved by the Mayor on December 22, 2004. City of
Jerome Ordinance No. 959 is attached to this Decision Memorandum with the Company s filing.
Idaho Code ~50-329A allows cities to impose a 1 % franchise fee.
COMMISSION DECISION
Staff recommends that Schedule 95 , Sheet 95-, be "accepted for filing" with an effective
date of February 25 2005 as proposed by the Company. Does the Commission agree?
lchae1 Fuss
udmemos/ldaho Power City of Jerome
DECISION MEMORANDUM JANUARY 28, 2005
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DAtI)
POWER
An IDACORP Company
MAGGIE BRlLZ
Director, Pricing
[phone]F~ (208) 388~9
mbrilz~idahoDower.com
January 25 2005
Ms. Jean D. Jewell , Secretary
Idaho Public Utilities Commission
P. O. Box 83720
Boise, ID 83720-0074
RE:Tariff Advice No. 05-
Revision to Schedule 95
Dear Ms. Jewell:
Idaho Power Company herewith transmits for filing First Revised Sheet No.
95-2. This tariff revision implements the 1 % franchise fee adopted by the City of Jerome.
Also transmitted are a copy of Schedule 95 in legislative format and a copy of the
ordinance adopting the franchise fee.
If you have any questions regarding this filing, please call me.
MB:mb
Enclosures
Ric Gale
Lisa Hardin
P&RS Files
Legal Files
Sincerely,
m~6
Maggie Brilz
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Idaho Power Company
I.P.C. No. 27 Tariff No. 101
First Revised Sheet No. 95-
Cancels
Oriainal Sheet No. 95-
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective Date
Munici alit Ordinance No.Of Char Char
City of Hailey 753 August 18, 2000
City of Idaho City 252 September 25 , 1996
City of Inkom 96-195 July 26, 1996
City of Jerome 959 February 28 2005
City of Ketchum 890 January 28 , 2004
City of Leadore June 20, 2000
City of McCall 713 November 20, 1997
City of Meridian 800 December 22, 1998
City of Middleton 287 October 22, 1999
City of Mountain Home 1251 October 24, 1996
City of Pocatello 2511 October 26, 1995
City of Richfield 175 March 27, 1996
City of Star May 24, 1999
City of Twin Falls 2610 August 24, 1999
City of Wilder 486 May 27, 2004
IDAHO
Issued - January 25, 2005
Effective - February 25, 2005
Advice No. 05-
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise , Idaho
Idaho Power Company
I.P.C. No. 27. Tariff No. 101 Ori inal Sheet No. 95-
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective Date
Munici alit Ordinance No.Of Char Char
City of Hailey 753 August 18, 2000
City of Idaho City 252 September 25 , 1996
City of Inkom 96-195 July 26, 1996
City of Jerome 959 February 28.2005
City of Ketchum 890 January 28,2004
City of Leadore June 20, 2000
City of McCall 713 November 20, 1997
City of Meridian 800 December 22 , 1998
City of Middleton 287 October 22 , 1999
City of Mountain Home 1251 October 24, 1996
City of Pocatello 2511 October 26, 1995
City of Richfield 175 March 27, 1996
City of Star May 24, 1999
City of Twin Falls 2610 August 24 1999
City of Wilder 486 May 27, 2004
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Ordinance No. 959
Bill No. 434
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, HIGHW A YS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF JEROME, IDAHO,
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND
ELEcrRIC SERVICE TO THE CITY, THE iNHABITANTS THEREOF, AND OTHERS FOR A
TERM OF 10 YEARS, INCLUDING THE NONEXCLUSNE RIGHT TO PHYSICALLY
LOCATE AND MAINT AIN TELEPHONE, CABLE, FillER 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 LIM:ITATIONS, TERMS
AND CONDITIONS GOVERNING TIlE EXERCISE OF SAID FRANCHISE-
BE IT ORDAINED BY THE MAYOR AND COUNCil.. OF THE CITY OF JERO~, IDAHO
THAT;
SECTION 1. The City of Jerome, 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 TEN (10) years from and after January I, 2005, however, with the
right to amend by mutual agreement ill 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 ail times maintained in good order and condition and in accordance with
standard engineering practices and ail applicable safety codes and lawful governmental regulations,
including ail applicable state and federal regulations and ail 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
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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 andlor 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 practicahle 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, airpon 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 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 Jerome 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 ct. 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.
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SECTION 8. 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
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. If authorized by formal adoption of city ordinance, 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 tenns 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 effer.;li ve 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 tenD 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 t~rm 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 undenaking 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
Jerome, 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
arid privileges hereby conferred may be changed, altered, amended or modified upon mutual
agreement hetween 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. The existing franchise agreement between the City and Grantee set forth in
Jerome Ordinance No. 353, dated September 20, 1960, shall terminate upon the adoption and
acceptance of this ordinance.
SECTION 21. Severability. If a part of ordinance is invalid, all valid parts that are
severable from the invalid part remain in effect. If a part of ordinance is invalid in one or more of
its applications, the part remains in effect in all valid applications that art: sevc:aable from the
invalid applications.
SECTION 22. Effective Date. This Ordinance shall become effective upon its passage and
publication as required by law.
PASSED AND ADOPTED by the Council of the City of Jerome this
~ fI~~2004.
2\~day of
APPROVED by the Mayor this ~ ":l n..tA day of
~~~
2004.
4-~~f'L
Mayor
ATIEST:
") . ~
~b~
) City Clerk
(Seal)..
ACCEPT ANCE
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 ~ 9 -0,day of DeLa rn-be 091-:$
BY:
Dan B. Minor
Senior Vice President - Delivery
=~:
Secretary
(Seal)
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