Maquoketa Valley Electric Cooperative Franchise Fee_Initiate Copyrighted
September 17, 2018
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Maquoketa Valley Electric Cooperative Franchise Fee
SUMMARY: City Manager recommending that the City Council set a
public hearing for October 1 , 2018 on an ordinance
imposing a franchise fee of 5% on Maquoketa Valley
Electric Cooperative.
RESOLUTION Setting a public hearing on an 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; Adopt
Resolution(s), Set Public Hearing for October 1, 2018
ATTACHMENTS:
Description Type
Maquoketa Valley Electric Franchise Fee-NNM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Setting Hearing Franchise Fee Resolutions
Proposed Ordinance- Franchise Fee Ordinance
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Maquoketa Valley Electric Cooperative Franchise Fee
DATE: September 10, 2018
Senior Counsel Barry Lindahl recommends the City Council set a public hearing for
October 1 , 2018 on an ordinance imposing a franchise fee of 5°k on Maquoketa Valley
Electric Cooperative.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Barry Lindahl, Senior Counsel
THE CITY OF Dubuque
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BARRY A. LINDAHL, E
SENIOR COUNSEL '
MEMO
To: Michael C. Van Milligen
City Manager
DATE: August 30, 2018
RE: Maquoketa Valley Electric Cooperative Franchise
The Maquoketa Valley Electric Cooperative (MVEC) electric franchise granted by the City
of Dubuque in 2004 expires October 3, 2018. The approval of a franchise requires a public
hearing before the City Council.
MVEC has not yet agreed to the franchise agreement.
Enclosed is a resolution setting a public hearing for October 1, 2018 for the ordinance
granting a new franchise, as well as a separate ordinance establishing a franchise fee.
I recommend that the resolutions setting the public hearings for October 1, 2018 be
submitted to the City Council for adoption.
BAL:tIs
Attachment
cc: Crenna Brumwell, City Attorney
James Wainwright, Esq.
Steve Nadel, Esq.
F:\Users\tsteckle\Lindahl\Franchise Fee Ordinance Notebook\Maquoketa Valley\MVM_MVECFranchiseAgreement_083018.docx
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, �-IARBOR VIEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944
TE�EPHorvE (563)583-4113/F<vc (563)583-1040/Ennai� balesq@cityofdubuque.org
RESOLUTION NO. 276-18
SETTING A PUBLIC HEARING ON AN 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
Whereas, City of Dubuque Ordinance No. , adopted by the City Council on
the 1st day of October, 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, Iowa (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 Iowa 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%); 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%) under the franchise ordinance,
Ordinance No.
Whereas, Iowa law requires that the City Council hold a public hearing on the
question of the adoption of the Ordinance imposing a franchise fee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA AS FOLLOWS:
Section 1. A public hearing on the question of the adoption of the Ordinance
imposing a franchise fee of five percent (5%) on Maquoketa Valley Electric Cooperative
is hereby set for the 1st day of October, 2018 in the City Council Chambers, Historic
Federal Building, 350 West 6t1' Street, Dubuque, Iowa, beginning at 6:00 p.m.
Section 2. The City Clerk shall publish notice of the public hearing as required by
Passed, approved and adopted the 17th day of September, 2018.
law.
083018baI
G
Roy D. Bol, Mayor
Attest:
Keviint. Firnstahl, City Clerk
F:\Users\tstecklelLindahl\Franchise Fee Ordinance Notebook\Maquoketa Valley\ResolutionSettingPublicHearing5%Fee_ MVEC_083018.docx
2
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
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
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
NOTICE is hereby given that the Dubuque City Council will conduct a public hearing at a
meeting to commence at 6:00 p.m. on Monday, October 1, 2018, in the Historic Federal
Building, second-floor, 350 W. 6th Street, Dubuque. The purpose of the hearing is to allow
public comment on the question of the adoption of an Ordinance imposing a franchise fee
of five percent (5%) on Maquoketa Valley Electric Cooperative
Copies of supporting documents for the public hearings are on file in the City Clerk’s
Office, City Hall, 50 W. 13th St., Dubuque, Iowa, and may be viewed during normal
working hours.
Written comments regarding the above public hearings may be submitted to the City
Clerk’s Office, 50 W. 13th St., on or before said time of public hearing. At said time and
place of public hearings all interested citizens and parties will be given an opportunity to
be heard for or against said proposal.
Any visually- or hearing-impaired persons needing special assistance 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
1t 9/14
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 `//er
Notary Public in and for Dubuque County, Iowa.
WESTERMEYER
apt) I�r Ps ion Numbor 154&35
My Cumrmssion Exp. Feb. 1, 2020
CITY OF DUBIOWAUQUE,
OFFICIAL NOTICE
IMPOSING`A FRAN-
CHISE FEE
RANCHISE_'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 thei"Dubuque
City Council will con'-
duct'' a public hearing
at a meeting to com-
mence at 6:00 p.m. on
Monday, "October' 1,
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
lec'tric'Cooperative
Copies of supporting
documents for the pub- 1
lic hearings are on file
in the City Clerks Of-
fice,
!.
'' City Hall, 50 W.
13th"- St., ''Dubuque,
Iowa;. and may be
viewed during normal l
working hours.
Written comments re-
garding the above pub -11
lic hearings may be
submitted to the City
Clerk's ' Office, 50 W.
13th' St., on or 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-
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
1t 9/21