Maquoketa Valley Electric Cooperative Franchise Fee_Tabled Copyrighted
October 1, 2018
City of Dubuque Public Hearings # 5.
ITEM TITLE: Maquoketa Valley Electric Cooperative Franchise Fee
SUMMARY: Proof of publication on notice of public hearing to consider
approval of an ordinance imposing a franchise fee of 5%
on Maquoketa Valley Electric Cooperative, and the City
Manager recommending approval.
ORDINANCE Imposing a Franchise Fee of five percent
(5%) on the gross revenue generated from the distribution
and sale of electricity within the City of Dubuque by
Maquoketa Valley Electric Cooperative
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Table to
November 5, 2018
ATTACHMENTS:
Description Type
Mquoketa Valley Electric Cooperative Franchise Fee City Manager Memo
Ordinance-NNM Memo
Staff Memo Staff Memo
Ordinance- Franchise Fee Ordinance
Suggested Nbtion Wording Supporting Documentation
THE CITY OF Dubuque
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Masterpiece on the Mississippi Z°°'�w'2
7A13 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Maquoketa Valley Electric Cooperative Franchise Fee Ordinance
DATE: September 25, 2018
Senior Counsel Barry Lindahl recommends the City Council table the public hearing on
the Maquoketa Valley Electric Cooperative Franchise Fee Ordinance to November 5,
2018, pending ongoing negotiations between the City and Maquoketa Valley Electric
Cooperative.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�� �� ���
Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Barry A. Lindahl, Senior Counsel
THE CTTY OF Dubuque
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DUB E '�I}I�A`
Masterpiece on the Mississippi �°' Z°'Z
2013 2017
BARRY A. LINDAHL, ESQ.
SENIOR COUNSEL
MEMO
To: Michael C. Van Milligen
City Manager
Dare: September 25, 2018
Re: Maquoketa Valley Electric Cooperative Franchise Extension
The Maquoketa Valley Electric Cooperative (MVEC) electricfranchise granted by the City
of Dubuque in 2004 expires October 3, 2018. The City and MVEC are in the process of
negotiating a new franchise agreement. Although MVEC has not yet agreed to a new
franchise agreement, it has agreed to an extension of the current franchise.
The extension of the term of a franchise requires a public hearing. Attached for the
October 1, 2018 City Council meeting is an ordinance extending the term of the Franchise
granted to Maquoketa Valley Electric Cooperative to and including November 5, 2018.
The proposed extension was for 30 days but in order to get to the next City Council
meeting the extension is to November 5, 2018, 33 days.
The MVEC Franchise Agreement Ordinance and the MVEC Franchise Fee Ordinance
which were scheduled for public hearings at the October 1, 2018 City Council meeting
should be tabled to the November 5, 2018 City Council meeting pending ongoing
negotiations between the City and MVEC.
I recommend that the ordinance extending the term of the Franchise granted to
Maquoketa Valley Electric Cooperative be submitted to the City Council for adoption.
BAL:tIs
Attachment
cc: Crenna Brumwell, City Attorney
James Wainwright, Esq.
Steve Nadel, Esq.
F:UlsersUsteckle�Lintlahl�Frenchise Fee Ortlinance NotebookWlaquoketa ValleyWlVM_MVECFrenchiseAgreement-ExtensionOrtlinance_092518.tlocx
OFFICE OF THE CITYATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)583-4113/Fnx (563)583-1040/Ennni� balesq@cityofdubuque.org
Preparer: Barry A. Lindahl. Esa. Address: Suite 330. 300 Main Street. Dubuaue. IA 52001
Te I e p h o n e: 15631 583-4113
ORDINANCE NO. -18
IMPOSING A FRANCHISE FEE OF FIVE PERCENT (5%) ON THE GROSS
REVENUE GENERATED FROM THE DISTRIBUTION AND SALE OF
ELECTRICITY WITHIN THE CITY OF DUBUQUE BY MAQUOKETA VALLEY
ELECTRIC COOPERATIVE
Whereas, City of Dubuque Ordinance No. , adopted by the City
Council on the day of , 2018, granted to Maquoketa Valley
Electric Cooperative, its successors and assigns (hereinafter referred to
collectively as "the Company"), the right and non-exclusive franchise to acquire,
construct, reconstruct, replace, erect, maintain and operate in the City of Dubuque,
lowa (hereinafter called the "City") a system for the distribution of electric energy
along, under, over and upon the streets, avenues, rights of way, alleys, public
places or public grounds (excluding parks) to serve customers within the City, and
to furnish and sell electric energy to the City and its inhabitants; and
Whereas, said Ordinance authorizes the City to impose by ordinance a
franchise fee up to the amount allowed by lowa law upon the gross revenue
generated from sales of electricity by the Company within the corporate limits of
the City; and
Whereas, pursuant to the previous franchise ordinance, Ordinance No. 20-
04, City of Dubuque Ordinance No. 13-15 imposed a franchise fee of five percent
(5°k); and
Whereas, the City Council finds that it is in the best interest of the City of
Dubuque to continue to impose a franchise fee of five percent (5°k) under the
franchise ordinance, Ordinance No.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
081518ba1
Section 1 . For the term of the franchise, the Company shall pay to the
City a fee equal to five percent (5°k) of the gross revenue generated from the sale
of electricity within the City of Dubuque. The City shall provide the Company with
a map depicting its current corporate boundaries and shall notify the Company of
any changes to the same.
The Company shall on the fifteenth day of each month, commencing on the 15�n
day of the month following the effective date of Ordinance No. , provide
to the City Manager in a form acceptable to the Company and the City Manager
records establishing the gross revenues from the sale of electricity by the
Company within the City of Dubuque for the preceding month and shall pay the fee
to the City within thirty (30) days following the last day of the preceding month.
The fee shall not apply to any sale of electricity by the Company that is exempt
under lowa Code section 423.3 from the tax imposed by lowa Code section 423.2
and in computing the amount of the fee, the Company shall not include such sales,
unless it is impracticable to do so, in which event the City Manager shall provide a
rebate of the amount of the fee for such exempt sales of electricity to Company's
customers provided a written request is submitted by a customer to the City
Manager in the City's fiscal year (July 1 - June 30) in which the customer pays
such fees. Any rebate of franchise fees which may have been available under any
prior ordinance which was not paid prior to July 1 , 2013, is declared void and any
claim for any such rebate shall not be honored or paid by the City.
The City Council reserves the right by amendment to this Ordinance to increase or
decrease the amount of such franchise fee as it determines to be in the public
interest.
Section 2. This Ordinance shall take effect as of the effective date of
Ordinance No.
Passed, approved and adopted the _ day of , 2018.
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
F:\Users\tsteckle\Lindahl\Franchise Fee Ordinance Notebook\Maquoketa Valley\MVEC Franchise Fee Ordinance Sh 0815186a1.docx
2
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper
on the following dates: September 21, 2018, and for which the charge is $21.89.
Subscribed to before me, a ► .tary Public ' and for Dubuque County, Iowa,
,20 /8 .
this ,8 day of
OF Notary Public in and for Dubuque County, Iowa.
r.1
RY K WESTERMEYFR
1i1 4sfion Number 154685
Cit ntmISsion Exp, Feb. 1, 2020
CITY OF DUBUQUE,
IOWA.
OFFICIAL NOTICE
IMPOSING A FRAN
CHISE FEE OF FIVE',
PERCENT (5%) ON
THE GROSS REVENUE
GENERATED FROM
THE DISTRIBUTION
AND SALE OF ELEC-
TRICITY WITHIN THE
CITY OF DUBUQUE BY
MAQUOKETA VALLEY
ELECTRIC COOPERA-
TIVE
NOTICE is hereby giv-
en that the i'Dubuque
City Council will con
duct+a public hearing',
at' a meeting to'com-
mence' at` 6:00, p.m. on
Monday, October
2018, in the Historic
Federal Building, sec-
ond -floor, 350 W. 6th
Street, Dubuque. The
purpose of the hearing
is to allow public com-
ment on the question
of the adoption of an
Ordinance imposing a
franchise ,fee of five
percent (5%) on
Maquoketa Valley Elec-
tric Cooperative
Copies of supporting
documents for the pub-
lic hearings are on file
in the City Clerks Of-
fice City Hall, 50 W.
13th St., "Dubuque;
lowa, and may be
viewed during normal
working hours.
Written comrments re-
garding the above pub- I
lic hearings may be
submitted to the City
Clerk's Office, 50 W.
13th St., on dr before-';
said time of public
hearing. At said time
and place of public
hearings all interested
citizens and parties
will be given an oppor-
tunity to be heard for
or against said propos-
al.
Any'visually-;or hear-
ing-impaired persons
needing special assis-
tance or persons with
special accessibility
needs should contact
the City Clerk's Office
at (563) 589-4100 or
TDD (563) 690-6678 at
least 48 hours prior to
the meeting.
Kevin S. Firnstahl,
CMC, City Clerk
1t9/21