Black Hills Energy Corporation Franchise Amendment (Tables to 1/20/15) Copyright 2014
City of Dubuque Public Hearings # 2.
ITEM TITLE: Black Hills Energy Corporation Franchise Amendment
SUMMARY: Proof of Publication on notice of public hearing to consider an amendment
to City Of Dubuque Code of Ordinances Sec. 11-4-23: Franchise
Fee, authorizing the City Council to impose a franchise fee not to exceed
three percent (3%) on the gross revenue generated from the distribution
and sale of natural gas or mixed gas within the City of Dubuque, by
increasing such authority to five percent (5%) and the City
Manager recommending approval.
ORDINANCE Amending City of Dubuque Code of Ordinances Sec. 11-4-
23: Franchise Fee, Authorizing the City Council to impose a Franchise Fee
not to exceed three percent (3%) on the gross revenue generated from the
distribution and sale of natural gas or mixed gas within the City of
Dubuque, by increasing such authority to five percent (5%)
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Motion B; Motion A
ATTACHMENTS:
Description Type
❑ Staff Memo Staff Memo
❑ Ordinance Ordinance
❑ Proof of Publication Supporting Documentation
THE CITY OF
DUB-�6 E MEMORANDUM
Masterpiece on the Mississippi
BARRY LINDAHL
CITY ATTORNEY
To: Mayor Roy D. Buol and
Members of the City Council
DATE: December 29, 2014
RE: Public Hearing on an Ordinance Amending City of Dubuque Code of
Ordinances 11-4-23 Authorizing the City Council To Impose a Franchise
Fee Not To Exceed Three Percent
In 1993, the City Council adopted an ordinance granting to Peoples Natural Gas
Company, its successors and assigns, a non-exclusive authority for a period of 25 years
to maintain and operate its gas distribution system within the city of Dubuque. Black
Hills Energy Corporation is the successor to Peoples Natural Gas Company.
The franchise agreement in Section 11-4-23 provides that the City Council may impose
a franchise fee not to exceed 3% of the gross revenue of the company generated from
the sale of natural and mixed gas within the city.
The attached ordinance authorizes the City Council to impose a franchise fee not to
exceed 5% on the gross revenue generated from the distribution from the sale of natural
and mixed gas within the city.
I recommend that the City Council adopt the Ordinance Amending City of Dubuque
Code of Ordinances 11-4-23.
BAL:tIs
Attachment
cc Michael C. Van Milligen, City Manager
F:\USERS\tsteckle\Lindahl\Franchise Fee Notebook\Black Hills\M ayorCo uncil_Ado ptOrdinanceArn end i ng 11-4-23BlackHills_122914.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)583-4113/FAX (563)583-1040/EMAIL balesq@cityofdubuque.org
Preparer: Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001
Telephone: (563) 583-4113
ORDINANCE NO. 02-15 (ORDINANCE NO. 2-15)
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SEC. 11-4-23:
FRANCHISE FEE, AUTHORIZING THE CITY COUNCIL TO IMPOSE A
FRANCHISE FEE NOT TO EXCEED THREE PERCENT (3%) ON THE GROSS
REVENUE GENERATED FROM THE DISTRIBUTION AND SALE OF
NATURAL GAS OR MIXED GAS WITHIN THE CITY OF DUBUQUE, BY
INCREASING SUCH AUTHORITY TO FIVE PERCENT (5%)
Whereas, City of Dubuque Ordinance No. 43-93 (City of Dubuque Code of
Ordinances Title 11 , Chapter 4), adopted by the City Council on the 19th day of
July, 1993, granted to Peoples Natural Gas Company, its successors and
assigns (hereinafter referred to collectively as the Company), nonexclusive
authority for a period of twenty-five (25) years to maintain and operate its gas
distribution system within the limits of the city of Dubuque; and
Whereas, Black Hills Energy Corporation is the successor to Peoples
Natural Gas Company; and
Whereas, Ordinance No. 43-93, now Code of Ordinances §11-4-23,
provides that the City Council may impose a franchise fee not to exceed three
percent (3%) of the gross revenue of the Company generated from the sale of
natural and mixed gas within the city of Dubuque; and
Whereas, the City Council has determined that it is in the best interests of
the City of Dubuque to increase the authority for such franchise fee to five
percent (5%).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
120214bal
Section 1 . City of Dubuque Code of Ordinances § 11-4-23 is hereby amended to
read as follows:
11-4-23: FRANCHISE FEE
A. The city council may impose a franchise fee not to exceed five percent (5%) of the
gross revenue of the company generated from the sale of natural and mixed gas
within the city; the city may also impose upon the company a franchise fee of five
per cent (5%) of revenue derived by the company from the acquisition, transmission,
transportation or distribution of natural and mixed gas sold to customers within the
city by suppliers other than the company through the company's distribution system
and if the revenue thus generated is not known then upon the value of the natural
and mixed gas thus delivered as determined by presuming the cost of gas is the
same as if sold by the company under the terms of its then current tariff, provided,
however, that the fee shall not be effective against the company unless and until the
city imposes a fee or tax of the same percentage on the gross revenue of sales of
energy within the city by all other energy suppliers with which the city has in effect a
franchise agreement allowing such fee. Any such franchise fee imposed shall be a
direct charge to customers to the extent required by the Iowa utilities board.
B. The company shall on the fifteenth day of each month, commencing November 15,
2003, provide to the city manager in a form acceptable to the city manager records
establishing the gross revenues from the sale of natural and mixed gas 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.
C. 1 . The fee shall not apply to any sale of natural and mixed gas by the company that
is exempt under Iowa Code section 423.3 from the tax imposed by Iowa Code
section 423.2 and in computing the amount of the fee, the company shall not include
such sales. The city manager shall provide a rebate of the amount of the fee for
such exempt sales of natural and mixed gas 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.
2. Any rebate of franchise fees which may have been available under any prior
amendment or 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.
D. If for any reason the time and manner of collecting, or any aspect of the franchise
fee, is challenged by or before the Iowa utilities board, company shall promptly give
notice to city and the company shall, in any case, diligently and continuously
exercise its efforts to sustain said fee and payments and the time and manner of its
collection. If at any time the Iowa utilities board, or any other authority having proper
jurisdiction, prohibits the city from imposing the franchise fee called for herein, the
company will no longer be obligated to collect and pay the franchise fee herein. The
city agrees to save harmless the company, its employees or agents from and
2
against all claims, demands, losses and expenses arising out of the collection of the
franchise fee from the company's customers or in remitting the franchise fee
amounts collected to the city; provided, however, that the city shall not be required to
save harmless the company from claims, demands, losses and expenses arising out
of the negligence of the company, its employees or agents.
E. The amount billed by the company for the sale of natural gas or mixed gas to its
customers may be adjusted for any net write off of uncollectible accounts and
corrections of bills theretofore rendered, and past or future franchise fees remitted to
the city may be adjusted accordingly by the company to reflect the lawful or
necessary correction to billing and collection from its customers for natural gas sold
within the corporate limits of the city.
F. The city shall provide copies of annexation ordinances to the company on a timely
basis to ensure appropriate franchise fee collection from customers within the
corporate limits of the city.
Section 2. This Ordinance shall take effect upon publication.
Passed, approved and adopted the day of 2015.
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
F:\USERS\isteckle\Lindahl\Ordinances\Franchise FeeAmendment Black Hills 11-4-23 120214.docx
3
ACCEPTANCE
The forgoing ordinance amending the Franchise Agreement is hereby accepted by
Black Hills Energy Corporation on this day of
2015.
By:
Laura Roussell
External Affairs Manager
4
EFFECT OF AMENDMENT
11-4-23: FRANCHISE FEE
A. The city council may , OR 46 GliGG.etiOR after a r„hr,. heerinn and 61POR RR effiFA;Rt,„e
„n+e „f ,u of +he n,en,he.G of the G96IRGil, impose a franchise fee not to exceed five
thFee percent (53%) of the gross revenue of the company generated from the sale of
natural and mixed gas within the city; the city may also impose upon the company a
franchise fee of five per cent (5%) of revenue derived by the company from the
acquisition, transmission, transportation or distribution of natural and mixed gas sold
to customers within the city by suppliers other than the company through the
company's distribution system and if the revenue thus generated is not known then
upon the value of the natural and mixed gas thus delivered as determined by
presuming the cost of gas is the same as if sold by the company under the terms of
its then current tariff, provided, however, that the fee shall not be effective against
the company unless and until the city imposes a fee or tax of the same percentage
on the gross revenue of sales of energy within the city by all other energy suppliers
with which the city has in effect a franchise agreement allowing such fee. Any such
franchise fee imposed shall be a direct charge to customers aceto the extent required
by the Iowa utilities board.
B. The company shall on the fifteenth day of each month, commencing November 15,
2003, provide to the city manager in a form acceptable to the city manager records
establishing the gross revenues from the sale of natural and mixed gas 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.
C. 1 . Effen#i„e july 1 , 20131 fee imposed by sen+inn 1 of eFdonenne SO 03 as ameRded
The fee shall not
apply to any sale of natural and mixed gas by the company that is exempt under
Iowa Code section 423.3 from the tax imposed by Iowa Code section 423.2 and in
computing the amount of the fee, the company shall not include such sale, 6 1� G;f
— tk;e–The city manager shall provide a
rebate of the amount of the fee for such exempt sales of natural and mixed gas 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.
2. Any rebate of franchise fees which may have been available under any prior
amendment or 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.
D. If for any reason the time and manner of collecting, or any aspect of the franchise
fee, is challenged by or before the Iowa utilities board, company shall promptly give
notice to city and the company shall, in any case, diligently and continuously
5
exercise its efforts to sustain said fee and payments and the time and manner of its
collection. If at any time the Iowa utilities board, or any other authority having proper
jurisdiction, prohibits the city from imposing the franchise fee called for herein, the
company will no longer be obligated to collect and pay the franchise fee herein. The
city agrees to save harmless the company, its employees or agents from and
against all claims, demands, losses and expenses arising out of the collection of the
franchise fee from the company's customers or in remitting the franchise fee
amounts collected to the city; provided, however, that the city shall not be required to
save harmless the company from claims, demands, losses and expenses arising out
of the negligence of the company, its employees or agents.
E. The amount billed by the company for the sale of natural gas or mixed gas to its
customers may be adjusted for any net write off of uncollectible accounts and
corrections of bills theretofore rendered, and past or future franchise fees remitted to
the city may be adjusted accordingly by the company to reflect the lawful or
necessary correction to billing and collection from its customers for natural gas sold
within the corporate limits of the city.
F. The city shall provide copies of annexation ordinances to the company on a timely
basis to ensure appropriate franchise fee collection from customers within the
corporate limits of the city.
6
Trish Gleason - Fwd: "Contact Us" inquiry from City of Dubuque website
From: Stephanie Valentine
To: Gleason, Trish
Date: 01/05/2015 2:06 PM
Subject: Fwd: "Contact Us" inquiry from City of Dubuque website
»>
From: "Citizen Support Center" <dubuqueia@mycusthelp.net>
To: <svalenti@cityofdubuque.org>
Date: 1/5/2015 2:01 PM
Subject: "Contact Us" inquiry from City of Dubuque website
Contact Us
Name: Loras Pape
Phone: 5635881435
Email: Ipape@papetransfer.com
City Department: City Council
Message: Since writting my last Letter to the Editor regarding Dubuque's reckless spending habits, I've had
more than 50 individuals come up to me Thanking me for my opinion. Some also mentioned we need to get
voices on the City Council that will listen. The next election our group will work on that. Tonights vote to
raise the franchise fees should be voted down. You need to spend LESS
Click here to report this email as spam.
01/05/2015
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: December 19, 2014, and for which the charge is $31.03.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this ,,,72 -T.," day of4,e,224,,) , 20 /.z. .
Notary Public in and for
ubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154885
My Comm, Exp. FEB. 1, 2017
CITY OF DUBUQUE,
IOWA
OFFICIAL NOTICE
ON THE MATTER OF
A PUBLIC HEARING
ON AN ORDINANCE
AMENDING CITY OF
DUBUQUE CODE OF
ORDINANCES SEC. 11-
4-23: FRANCHISE FEE,
AUTHORIZING THE
CITY COUNCIL TO
IMPOSE A FRAN-
CHISE FEE NOT TO
EXCEED THREE PER-
CENT (3%) ON THE
GROSS REVENUE
GENERATED FROM
THE DISTRIBUTION
AND SALE OF
NATURAL GAS OR
MIXED GAS WITHIN
THE CITY OF DUBU-
QUE, BY INCREASING
SUCH AUTHORITY TO
FIVE PERCENT (5%)
PUBLIC NOTICE is
hereby given that the
City Council of the City
of Dubuque, State of
Iowa, will meet on the
5th day of January,
2015, at 6:30 P.M., in
the City Council
Chambers, Historic
Federal Building, 350
W. 6th Street,
Dubuque, Iowa, at
which meeting the City
Council proposes to
consider the adoption
of an ordinance
amending the fran-
chise agreement with
Black Hills Energy
Corporation, City of
Dubuque Code of
Ordinances § 11-4-23,
authorizing the City
Council to impose a
franchise fee not to
exceed three per cent
(3%) on the gross
revenue generated
from the distribution
and sale of natural gas
or mixed gas within the
City of Dubuque, by
increasing such
authority to five
percent (5%).
A copy of the
proposed ordinance is
on file at the Office of
the City Clerk, City
Hall, 50 W. 13th Street,
Dubuque, Iowa.
Written comments
regarding the ordi-
nance may be
submitted to the City
Clerk on or before the
time of the public
hearing.
At said time and place
of the public hearing,
all interested citizens
will be given an
opportunity to address
the city council
regarding the pro-
posed ordinance.
Any visual or hearing -
impaired persons
needing special
assistance or persons
with special accessi-
bility needs should
contact the City Clerk's
office at (563) 589-4120
or TDD at (563) 690-
6678 at least 48 hours
prior to the meeting.
This Notice is given by
order of the City
Council of Dubuque,
Iowa, as provided by
Sections 364.2(4) and
362.3 of the Code of
Iowa, as amended.
Published by order of
the City Council given
on the 15th day of
December, 2014.
/s/Trish L. Gleason,
Assistant City Clerk
It 12/19