20050526_1209.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:HARRY V. HALL
DATE:MAY 25, 2005
RE:IDAHO POWER TARIFF ADVICE NO. 05-04 TO INCREASE THE CITY
OF KIMBERLY'S FRANCHISE FEE.
On April 27, 2005, Idaho Power Company filed Tariff Advice No. 05-04 with the
Commission requesting an increase in the franchise fee within the City of Kimberly, 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 May 27 2005. The
1 % franchise fee is the result of City of Kimberly Ordinance No. 522 passed and adopted by the
Council of the City of Kimberly on March 22, 2005 and approved by the Mayor on March 22
2005. City of Kimberly Ordinance No. 522 is attached to this Decision Memorandum with the
Company s filing. Idaho Code 950-329A allows cities to impose a 1 % franchise fee.
COMMISSION DECISION
Staff recommends that Schedule 95, First Revised Sheet 95-2 replacing Original Sheet
95-, be "accepted for filing" with an effective date of May 27, 2005 as proposed by the
Company. Does the Commission agree?
;;/d
udmemos/ldaho Power City of Kimberly
DECISION MEMORANDUM MAY 25 , 2005
RE CEIVED
2005 April27 PM 1:05
IDAHO PUBLIC
UTILITIES COMMISSION
CID
An IDACORP Company
MAGGIE BRILZ
Director, Pricing
April 27, 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:
[phone]F~ [phone]
mbrilzocv.idahopower.com
Idaho Power Company herewith transmits for filing Second Revised Sheet
No. 95-2. This tariff reyision implements the 1 % franchise fee adopted by the City of
Kimberly. 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.
Sincerely,
m~. .6
Maggie Brilz
MB:mb
Enclosures
Ric Gale
Lisa Hardin
P&RS Files
Legal Files
Idaho Power Company
I.P.C. No. 27, Tariff No. 101
Second Revised Sheet No. 95-
Cancels
First Revised 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 Kimberly 522 . May 27 2005
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 - April 27, 2005
Effective - May 27, 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 First Revised Sheet No. 95-
Cancels
Oriqinal Sheet No. 95-I.P.C. No. 27 Tariff No.1 01
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 Kimberly 522 May 27. 2005
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
",.
ORDINANCE NO 522
AN ORDJNANCE IN ACCORDANCE WJTH IDAHO CODE 50-328, 50-329 A1\TD 50-329A
GRANTJNG 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 HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF KIMBERLY IDAHO,
. ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND
ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR
TERM OF 10 YEARS INCLUDING THE NONEXCLUSNE RIGHT TO PHYSICALLY
- LOCATE AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER
COMMUN1CA TlONS FACILITIES; SETTING FORTH AN AGREEMENT NOT
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 KIMBERLY, IDAHO
TRA T:
SECTION 1. The City of Kimberly, Idaho (hereinafter cal1ed the "City ) hereby grants to
IDAHO POWER COMPANY, a corporation, and to its successors and assigns (hereinafter caned
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 the date of publication of this Ordinance.
However, with the right to amend by mutual agreement in accordance with Section 15 , to construct
maintain and operate in and upon the present and future streets, al1eys, 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 shan conlply with the City s requirements for cable system franchises) all subject to the
tenns and conditions hereinafter specified. In the case of annexation of property to the corporate
limit, such area win be considered under this agTeement, upon effective date of the annexation
subject to Section 9 hereof. All such electric utility property and facihties now maintained by the
Grantee within the streets, al1eys, highways and other public places within the corporate limits of
the City shall be deemed covered by this ordinance as provided herein.
SECT10N 2. A11 of the Grantee s electric property and facilities in and upon the present and
future streets, al1eys, 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 aDd a 11 applicable safety codes and lawful govemn1ental regulations
including all applicable state and federal regulations and all construction standards presently in
effect by the 1daho Public Utilities Commission or adopted by that Commission during the tenn
this franchise agTeement.
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 by the City. The City
shall have no responsibility for the costs of such relocations. The Grantee shall bear the cost
relocating its facilities at the City s request : unless the facilities are to be relocated for the benefit of
a ihird 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
anolv for such funds and the Grantee will be reimbursed to the extent anvsuch finds are actual1v
obtained.
SECTION 4. It shal1 be lawful for the Grantee to make all needful or convenient excavations
and/or installations in any of the present and future streets, al1eys, 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, shan disturb any of said
streets, alleys, Highways or other public places for the purposes aforesaid, he, it or they sha11 restore
the same to good order and condition as soon as practicable and without unnecessary delay and
failing to do so after five days' notice from the City, or its duly authorized officer or officers , then
fine City may place said street, alley, highway or public place in such condition at the cost and
expense of the Grantee, and said Grantee w111 forthwith pay the full cost and expense thereof upon
demand of the City. Al1 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 shaH not interfere with
the passage of traffic and sha11 conform to a11 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 wires of the City shal1 be subject to interference by the
Grantee only when necessary in the nlaintenance, 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
enlployees and agents, hanl11ess from any and all expenses or liabiEty arising ITom 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 ri~hts hereunder, Grantee shall file with the City Clerk a Certificate oflnsurance evidencing
General Liability Insurance which covers c1aims for Bodily Injury, Property Damage and Personal
Injury. Such insurance shal1 have minimum limits of $1 ,000 000 per OCCUITence. The City of
Kimberly 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 C1ail11s Act (Idaho Code Section 6-901 eL seq.) or any similar legislation, the
Grantee shal1 be required to provide the City with a new Certificate of Insurance evidencing the
higher limits upon the Citls request.
SECTION 8. The electric service to be furnished to the public hereunder, and all rates and
charges therefore, and al1 regulation of the Grantee hereunder, shall at all tinlesbe 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 jurisdi.ction over such
matters. During the tenl1 of this franchise, Grantee shall at all tinles assure that clistonlers within the
City have access to customer service from the Grantee as required by the Idaho Public lTtilities
Commission.
SECTION 9. If authorized by foTInal adoption of city resolution. as compensation for the
right, privilege and franchise hereby granted, Grantee agrees to pay to the City on Dr before the 30th
day of January, April, July and October, an amount equivalent to one percent (10/0) of Grantee
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 uncol1ectibles. 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 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 infol1l1ation for the identification of the Grantee
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 fonowing the effective date of this ordinance; provided, that the
Grantee must first receive approval from the Idaho Public Utilities Commission for the collection
the franchise fee in the rates charged by Grantee.
SECTION 10. The City shall have the right during the tenD of this franchise agreement to
increase the franchise fee hereunder up to three percent (30/0), by obtaining approval of a majority of
voters of the City voting on the questions 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 wil1 apply to any electric service provider (other than the City) who utilizes the City
streets, alleys or other public places to provide electrical service within the City, during the term 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 tinle to time audit the same for the purpose of detel1l1ining gross revenues
under Sec60n 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 tenD 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 Arbonst Association standards, of the pruning of al1
trees which overhang the present and future streets, alleys, highways and other public places withih
the corporate limits of the City, in such a manner and to such extent as win 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 win be performed
SECTION 14. In consideration of Grantee s undertaking hereunder as evidenced by its
acceptance hereor. 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 enlinent domain granted to it under the laws of the State of
Idaho. The City shal1 not grant a franchise to another electric service provider during the tenn
this franchise agreement unless the electric service provider has received approval to p1-ovide
electrical service within the City from the Idaho Public Utilities Commission, and the Ci1y 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
Kimberly, the State oi 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 confeITed 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 of City or Grantee to reopen the agreement pursuant ~o 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 perfonn any of the provisions
thereof sha11 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, sha11 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 withoutnotification to the City.
SECTION 18. The Grantee sha11 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
Ordinance #221 , dated April 11 , 1967 , shall tenninate 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, al1eys, 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 therefofe this ordinance shall take effect on
. its date of publication.
PASSED AND ADOPTED by the Council of the City of Kimberly this 22nd day of March , 2005.
APPROVED by the Mayor this 22nd day of March, 2005.
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A CCEPT AN CE
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.
DA TED this 26 ~day of , 2005.
By:
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Daniel B. Minor
Senior Vice President-Delivery
ATTEST:~~ xI
Secretary
(Seal)
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