Electric and Gas Franchise Fee RevenueMasterpiece on the Mississippi
Dubuque
Itittri
All- AmdcaC ty
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proposed Increase in Franchise Fee Revenue from the Sales of Gas and
Electricity within the City of Dubuque
DATE: January 28, 2010
Budget Director Jennifer Larson is recommending approving the revenue purpose
statements for the use or expenditure of gas and electricity franchise fee revenues from
the sale of gas and electricity within the City of Dubuque, and to set a public hearing for
February 15, 2010, to increase the utility franchise fee from 2% to 3 %.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jenny Larson, Budget Director
Michael C. Van Milligen
Masterpiece on the Mississippi
Dubuque
bibil
AU- Amedca City
1111
2007
January 26, 2010
TO: Michael C. Van Milligen, City Manager
FROM: Jenny Larson, Budget Director L,
SUBJECT: Proposed Increase in Franchise Fee Revenue from the Sale of Gas and
Electricity within the City of Dubuque
INTRODUCTION
The purpose of this memorandum is to submit resolutions for the franchise agreements
between the City and Black Hills Energy Corporation, Alliant Energy and Maquoketa
Valley Electric Cooperative for the approval of a revenue purpose statement for the use
or expenditure of gas and electricity franchise fee revenues from the sale of gas and
electricity within the City of Dubuque and to set the public hearing and authorize the
publication of official notices for the public hearing required in connection with the
proposed increase of the gas and electric franchise fees from 2% to 3 %.
DISCUSSION
The recommended Fiscal Year 2011 budget includes a proposed increase of the
franchise fees under the City's franchise agreements with Black Hills Energy Alliant
Energy and Maquoketa Valley Electric Cooperative from 2% to 3% on the sale of gas
and electricity within the City of Dubuque.
The increase in the fee is expected to generate $828,000 in Fiscal Year 2011. Without
this fee increase, the City would need to increase property taxes paid by the average
homeowner by 6.73% instead of the recommended 2.47 %, or make substantial cuts in
the City budget.
On July 19, 1993, the City Council approved a 25 year franchise fee agreement with
Interstate Power, Maquoketa Valley Electric Cooperative and Peoples Natural Gas.
The Citizens approved the three franchises by referendum. The franchises include the
right for the City to assess a fee up to 3 %. On October 1, 2003, the City established a
2% utility franchise fee. The gas service franchise fee is calculated by taking 2% of
gross revenues generated from the sale of natural and mixed gas within the City of
Dubuque and the electric service franchise fee is calculated by taking 2% of gross
revenue generated from the sale of electricity within the City of Dubuque. City of
Dubuque accounts are not charged franchise fees. The amount billed by the gas and
electric companies for the sale of gas and electricity to its customers may be adjusted
for any net write -off of uncollectible accounts and correction of bills rendered, and past
or future franchise fees remitted to the City may be adjusted accordingly by the gas and
electric companies to reflect the lawful or necessary correction to billing and collection
from its customers for electricity and gas sold within the corporate limits of the City. The
City provides copies of annexation ordinances to the gas and electric companies on a
timely basis to ensure appropriate franchise fee collection from customers within the
corporate limits of the City.
Alliant Energy does not bill any City of Dubuque accounts the franchise fees. However,
all other Dubuque customers are charged the fee and the City then rebates the
customers who are fully or partially sales -tax exempt. Black Hills Energy does not
charge the franchise fee to any of its customers that the City advises are fully exempt
from sales taxes and therefore exempt from the franchise fee. However, the City
provides a rebate to any customer who is only partially sales -tax exempt. The same
franchise fee rebates /exemptions would apply as well to the 3% fee.
Examples of organizations that are sales tax exempt are Dubuque Community School
District, Finley Hospital, Mercy Medical Center, Loras College, and University of
Dubuque. The City receives reimbursement requests from eligible sales -tax exempt
organizations and then rebates the eligible amount of franchise fees paid by that
organization.
The public hearing on the proposed ordinance increasing the franchise fee under the
City's gas franchise with Black Hills Energy and electric franchise with Alliant Energy
and Maquoketa Valley Electric Cooperative from 2% to 3% on the sale of gas and
electricity within the City of Dubuque will be conducted at 6:30 p.m. in the City Council
Chambers at the Historic Federal Building on Monday, February 15, 2010.
State law requires the City Council to prepare a revenue purpose statement before
increasing the percentage at which franchise fees are assessed. The City Council is
also required to hold a public hearing on a proposed ordinance increasing the franchise
fee.
The franchise requires that any increase in the franchise fee must be passed by a
unanimous vote of the City Council.
ACTION STEP
The action step is for City Council to adopt the resolutions for the franchise
agreements with Black Hills Energy Corporation, Alliant Energy and Maquoketa Valley
Electric Cooperative approving the revenue purpose statements for the use or
expenditure of gas and electricity franchise fee revenues from the sale of gas and
electricity within the City of Dubuque and to adopt the resolutions setting the public
hearing and authorizing the publication of official notices for the public hearing required
in connection with the increase of the gas and electric franchise fees from 2% to 3 %.
JML
Attachments
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
SUMMARY SHEET FOR
ALLIANT ENERGY
BLACK HILLS ENERGY CORPORATION
MAQUOKETA VALLEY ELECTRIC COOPERATIVE
REGARDING PROPOSED FRANCHISE FEE INCREASE
Notice /Resolutions:
1. Notice Of Proposed Resolution Approving A Revenue Purpose Statement;
• attach Resolution Approving A Revenue Purpose Statement
• publish prior to the February 1, 2010 City Council meeting
2. Resolution Approving A Revenue Purpose Statement;
• for the February 1, 2010 City Council meeting
3. Resolution Setting A Public Hearing On Proposed Ordinance Increasing
Franchise Fee
• for the February 1, 2010 City Council meeting
Notice /Ordinance:
1. Notice Of Public Hearing On Proposed Ordinance Increasing Franchise Fee;
• attach approved Revenue Purpose Statement
• publish prior to the February 15, 2010 City Council meeting
2. Ordinance Increasing The Franchise Fee Of Two Percent To Three Percent.
• for the February 15, 2010 City Council meeting
CITY OF DUBUQUE
NOTICE OF PROPOSED RESOLUTION
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR
EXPENDITURE OF ELECTRIC FRANCHISE FEE REVENUES FROM THE SALE OF
ELECTRICITY BY ALLIANT ENERGY WITHIN THE CITY OF DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque, Iowa, will
consider the adoption of the attached resolution at its meeting on the 1 day of
February, at 6:30 p.m. in the City Council Chambers at the Historical Federal Building,
350 West 6 Street, Dubuque, Iowa.
Jeanne F. Schneider, CMC
City Clerk
RESOLUTION NO. 28-10
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR EXPENDITURE OF
ELECTRIC FRANCHISE FEE REVENUES FROM THE SALE OF ELECTRICITY BY
ALLIANT ENERGY WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 58 -93, adopted by the City Council on the 4th
day of October 1993, granted to Interstate Power 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 electrical system within the limits of the city
of Dubuque; and
Whereas, Alliant Energy is the successor to Interstate Power Company; andWhereas, Ordinance No. 58 -93 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 electricity within the city of Dubuque; and
Whereas, Ordinance No. 58 -03 imposed a franchise fee equal to two percent (2 %) of
the gross revenue of the Company generated from the sale of electricity within the city of
Dubuque
Whereas, the City Council has determined that it s in the best interests of the City of
Dubuque to increase the franchise fee to three percent (3 %).
Whereas, Iowa law requires the City Council to prepare a revenue purpose statement
before increasing the percentage rate at which franchise fees are assessed.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Pursuant to the provisions of Iowa Code Section 364.2(4)(f), the City Council hereby
establishes the following purposes for which franchise fee revenues from its electric franchise
with Alliant Energy may be used or expended:
Property tax relief. The City will use 100% of the revenue collected from the 1%
increase in the gas franchise fee for property tax relief.
Atte
eanne F. Schneider, CMC
City Clerk
Passed, approved and adopted the 1 day of Feb ?ary, 2010.
Roy D. uol, Mayor
CITY OF DUBUQUE
NOTICE OF PROPOSED RESOLUTION
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR
EXPENDITURE OF GAS FRANCHISE FEE REVENUES FROM THE SALE OF GAS
BY BLACK HILLS ENERGY CORPORATION WITHIN THE CITY OF DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque, Iowa, will
consider the adoption of the attached resolution at its meeting on the 1 day of
February, at 6:30 p.m. in the City Council Chambers at the Historical Federal Building,
350 West 6 Street, Dubuque, Iowa.
Jeanne F. Schneider, CMC
City Clerk
RESOLUTION NO. 29-10
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR EXPENDITURE OF
GAS FRANCHISE FEE REVENUES FROM THE SALE OF GAS BY BLACK HILLS ENERGY
CORPORATION WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 43 -93 (City of Dubuque Code of Ordinances
Appendix C), adopted by the City Council on the 19 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 provides that the City Council may impose a franchise
fee not to exceed three (3) percent of the gross revenue of the Company generated from the
sale of natural and mixed gas within the city of Dubuque; and
Whereas, Ordinance No. 59 -03 imposed a franchise fee equal to two percent (2 %) 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 franchise fee to three percent (3 %).
Whereas, Iowa law requires the City Council to prepare a revenue purpose statement
before increasing the percentage rate at which franchise fees are assessed.
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Pursuant to the provisions of Iowa Code Section 364.2(4)(f), the City Council hereby
establishes the following purposes for which franchise fee revenues from its gas franchise with
Black Hills Energy may be used or expended:
Property tax relief. The City will use 100% of the revenue collected from the 1%
increase in the gas franchise fee for property tax relief.
Attest
Passed, approved and adopted the 1 day of Feb
Jeanne F. Schneider, City Clerk
Roy D. uol, Mayor
2010
CITY OF DUBUQUE
NOTICE OF PROPOSED RESOLUTION
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR
EXPENDITURE OF ELECTRIC FRANCHISE FEE REVENUES FROM THE SALE OF
ELECTRICITY BY MAQUOKETA VALLEY ELECTRIC COOPERATIVE WITHIN THE
CITY OF DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque, Iowa, will
consider the adoption of the attached resolution at its meeting on the 1 day of
February, at 6:30 p.m. in the City Council Chambers at the Historical Federal Building,
350 West 6 Street, Dubuque, Iowa.
Jeanne F. Schneider, CMC
City Clerk
RESOLUTION NO. 30 -10
APPROVING A REVENUE PURPOSE STATEMENT FOR THE USE OR EXPENDITURE OF
ELECTRIC FRANCHISE FEE REVENUES FROM THE SALE OF ELECTRICITY BY
MAQUOKETA VALLEY ELECTRIC COOPERATIVE WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 20 -04, adopted by the City Council on the 5th
day of April, 2004, granted to Maquoketa Valley Electric Cooperative, its successors and
assigns (hereinafter referred to collectively as the Company), nonexclusive authority through
October 3, 2018, to maintain and operate its electrical system within the limits of the city of
Dubuque; and
Whereas, Ordinance No. 20 -04 imposed a franchise fee equal to two percent (2 %) of
the gross revenue of the Company generated from the sale of electricity within the city of
Dubuque; and
Whereas, Ordinance No. 20 -04 provided further that the City Council reserved the right
to increase or decrease the amount of such franchise fee as it determined to be in the public
interest; and
Whereas, the City Council has determined that it is in the best interests of the City of
Dubuque to increase the franchise fee to three percent (3 %); and
Whereas, Iowa law requires the City Council to prepare a revenue purpose statement
before increasing the percentage rate at which franchise fees are assessed.
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Pursuant to the provisions of Iowa Code Section 364.2(4)(f), the City Council of the City
of Dubuque hereby establishes the following purposes for which the franchise fee revenues
from its electric franchise with Maquoketa Valley Electric Cooperative may be used or
expended:
Property tax relief. The City will use 100% of the revenue collected from the 1%
increase in the gas franchise fee for property tax relief.
Passed, approved and adopted the 1st day of February, 2010.
Jeanne F. Schneider, CMC
City Clerk
Roy D.: uol, Mayor
RESOLUTION NO. 31-10
SETTING A PUBLIC HEARING ON A PROPOSED ORDINANCE INCREASING THE
FRANCHISE FEE UNDER THE CITY'S ELECTRIC FRANCHISE WITH ALLIANT
ENERGY FROM 2% TO 3% ON THE SALE OF ELECTRICITY WITHIN THE CITY OF
DUBUQUE
Whereas, City of Dubuque Ordinance No. 58 -93, adopted by the City Council on
the 4th day of October, 1993, granted to Interstate Power 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 electrical system within the
limits of the City of Dubuque; and
Whereas, Alliant Energy is the successor to Interstate Power Company; and
Whereas, Ordinance No. 58 -93 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 electricity within the City of Dubuque; and
Whereas, Ordinance No. 58 -03 imposed a franchise fee equal to two percent
(2 %) of the gross revenue of the Company generated from the sale of electricity within
the City of Dubuque; and
Whereas, the City Council has approved a Revenue Purpose Statement as
required by law; and
Whereas, the City Council has determined that a public hearing should be set to
determine whether it is in the best interests of the City of Dubuque to increase the
franchise fee to three percent (3 %).
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council shall conduct a public hearing on the proposed
1% increase in the electric franchise fee in the City Council Chambers at the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, on Monday, February 15, 2010,
beginning at 6:30 p.m.
Section 2. That the City Clerk be and is hereby authorized and directed to
publish notice of the public hearing, according to law, together with the required
franchise fee revenue purpose statement.
Passed, approved and adopted this 1st day / ,bruary, 2010.
Jeanne F. Schneider, CMC
City Clerk
Roy D. ol, Mayor
NOTICE OF PUBLIC HEARING
ON
PROPOSED ORDINANCE INCREASING THE FRANCHISE FEE UNDER
THE CITY'S ELECTRIC FRANCHISE WITH ALLIANT ENERGY FROM 2% TO 3% ON
THE SALE OF ELECTRICITY WITHIN THE CITY OF DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque will hold a public
hearing on a proposed ordinance, increasing the existing 2% franchise fee to 3% on the
sale of electricity by Interstate Power Company within the city of Dubuque. Said public
hearing will be held at 6:30 p.m. in the City Council Chambers, Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, on Monday, February 15, 2010.
The City Council of the City of Dubuque, pursuant to resolution adopted the 1 day of
February, 2010, has adopted the attached resolution approving a revenue purpose
statement, outlining the purposes for which the City shall use the franchise fee revenues
that it will receive if the ordinance is adopted.
Jeanne F. Schneider, CMC
City Clerk
Preparer: Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001
Telephone: (563) 583 -4113
INCREASING THE FRANCHISE FEE OF TWO PERCENT (2 %) OF THE
GROSS REVENUE OF ALLIANT ENERGY, ITS SUCCESSORS AND
ASSIGNS, GENERATED FROM THE SALE OF ELECTRICITY WITHIN THE
CITY OF DUBUQUE TO THREE PERCENT (3 %)
Whereas, City of Dubuque Ordinance No. 58 -93, adopted by the City
Council on the 4 th day of October 1993, granted to Interstate Power 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 electrical system within the limits of the city of Dubuque; and
and
ORDINANCE NO. -10
Whereas, Alliant Energy is the successor to Interstate Power Company:
Whereas, Ordinance No. 58 -93 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 electricity within the city of Dubuque; and
Whereas, Ordinance No. 58 -03 imposed a franchise fee equal to two
percent (2 %) of the gross revenue of the Company generated from the sale of
electricity within the city of Dubuque.
Whereas, the City Council has determined that it is in the best interests of
the City of Dubuque to increase the franchise fee to three percent (3 %).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1 of Ordinance No. 58 -03 is amended to read as follows:
Section 1. Effective and for the term of the
franchise granted by Ordinance No. 58 -93, there is hereby imposed upon
Attest:
the Company a fee equal to three percent (3 %) of the gross revenue
generated from the sale of electricity within the city of Dubuque.
Passed, approved and adopted the 15 day of February, 2010.
Jeanne F. Schneider, City Clerk
Roy D. Buol, Mayor
F:\USERS \tsteckle \Lindahl\ Ordinances\ FranchiseFees _AlliantEnergyTo3 %_011410.doc
RESOLUTION NO. 32-10
SETTING A PUBLIC HEARING ON A PROPOSED ORDINANCE INCREASING THE
FRANCHISE FEE UNDER THE CITY'S GAS FRANCHISE WITH BLACK HILLS ENERGY
CORPORATION FROM 2% TO 3% ON THE SALE OF GAS WITHIN THE CITY OF
DUBUQUE
Whereas, City of Dubuque Ordinance No. 43 -93 (City of Dubuque Code of
Ordinances Appendix C), 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 provides that the City Council may, impose a
franchise fee not to exceed three (3) percent of the gross revenue of the Company
generated from the sale of natural and mixed gas within the City of Dubuque; and
Whereas-, Ordinance No. 59 -03 imposed a franchise fee equal to two percent (2 %) 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 approved a Revenue Purpose Statement as required
by law; and
Whereas, the City Council has determined that a public hearing should be set to
determine whether it is in the best interests the City of Dubuque to increase the franchise
fee to three percent (3 %).
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council shall conduct a public hearing on the proposed
1% increase in the gas franchise fee in the City Council Chambers at the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, on Monday, February 15, 2010, beginning at
6:30 p.m.
Section 2. That the City Clerk be and is hereby authorized and directed to publish
notice of the public hearing, according to law, together with the required franchise fee
revenue purpose statement.
Attest:
Passed, approved and adopted this 1 day of F; bruary, 2010.
Jeanne F. Schneider, CMC
City Clerk
Roy D. B. 'I, Mayor
NOTICE OF PUBLIC HEARING
ON
PROPOSED ORDINANCE INCREASING THE FRANCHISE FEE UNDER
THE CITY'S GAS FRANCHISE WITH BLACK HILLS ENERGY CORPORATION
FROM 2% TO 3% ON THE SALE OF GAS WITHIN THE CITY OF DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque will hold a public
hearing on a proposed ordinance, increasing the existing 2% franchise fee to 3% on the
sale of gas by Black Hills Energy within the city of Dubuque. Said public hearing will be
held at 6:30 p.m. in the City Council Chambers, Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, on Monday, February 15, 2010.
The City Council of the City of Dubuque, pursuant to resolution adopted the 1 day of
February, 2010, has approved the attached revenue purpose statement, outlining the
purposes for which the City shall use the franchise fee revenues that it will receive if the
ordinance is adopted.
Jeanne F. Schneider, CMC
City Clerk
Preparer: Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001
Telephone: (563) 583 -4113
ORDINANCE NO. -10
INCREASING THE FRANCHISE FEE OF TWO PERCENT (2%) OF THE
GROSS REVENUE OF BLACK HILLS ENERGY CORPORATION, ITS
SUCCESSORS AND ASSIGNS, GENERATED FROM THE DISTRIBUTION
AND SALE OF NATURAL GAS OR MIXED GAS WITHIN THE CITY OF
DUBUQUE TO THREE PERCENT (3 %)
Whereas, City of Dubuque Ordinance No. 43 -93 (City of Dubuque Code of
Ordinances Appendix C), adopted by the City Council on the 19 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 provides that the City Council may,
impose a franchise fee not to exceed three (3) percent of the gross revenue of
the Company generated from the sale of natural and mixed gas within the city of
Dubuque; and
Whereas, Ordinance No. 59 -03 imposed a franchise fee equal to two
percent (2 %) 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 franchise fee to three percent (3 %).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1 of Ordinance No. 59 -03 is amended to read as follows:
Attest:
Section 1. Effective and for the term of the
franchise granted by Ordinance No. 43 -93, there is hereby imposed upon
the Company a fee equal to three percent (3 %) of the gross revenue
generated from the sale of natural and mixed gas within the city of
Dubuque.
Passed, approved and adopted the 15 day of February, 2010.
Jeanne F. Schneider, City Clerk
F:\ USERS\ tsteckle\ Lindahl \Ordinances\FranchiseFees BlackHillsTo3% 011410.doc
Roy D. Buol, Mayor
RESOLUTION NO. 33-10
SETTING A PUBLIC HEARING ON A PROPOSED ORDINANCE INCREASING THE
FRANCHISE FEE UNDER THE CITY'S ELECTRIC FRANCHISE WITH MAQUOKETA
VALLEY ELECTRIC COOPERATIVE FROM 2% TO 3% ON THE SALE OF
ELECTRICITY WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 20 -04, adopted by the City. Council on
the 5 day of April, 2004, granted to Maquoketa Valley Electric Cooperative, its
successors and assigns (hereinafter referred to collectively as the Company),
nonexclusive authority through October 3, 2018, to maintain and operate its electrical
system within the limits of the City of Dubuque; and
Whereas, Ordinance No. 20 -04 imposed a franchise fee equal to two percent
(2 %) of the gross revenue of the Company generated from the sale of electricity within
the City of Dubuque; and
Whereas, Ordinance No. 20 -04 provided further that the City Council reserved
the right to increase or decrease the amount of such franchise fee as it determined to
be in the public interest; and
Whereas, the City Council has approved a Revenue Purpose Statement as .
required by law; and
Whereas, the City Council has determined that a public hearing should be set to
determine whether it is in the best interests of the City of Dubuque to increase the
franchise fee to three percent (3 %).
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council shall conduct a public hearing on the
proposed 1% increase in the electric franchise fee in the City Council Chambers at the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, on Monday, February
15, 2010, beginning at 6:30 p.m.
Section 2. That the City Clerk be and is hereby authorized and directed to
publish notice of the public hearing, according to law, together with the required
franchise fee revenue purpose statement.
Attest:
Jeanne F. Schneider, CMC
City Clerk
Passed, approved and adopted this 1st day
Roy D. uol
Mayor
February, 2010.
9 L.41
NOTICE OF PUBLIC HEARING
ON
PROPOSED ORDINANCE INCREASING THE FRANCHISE FEE UNDER THE CITY'S
ELECTRIC FRANCHISE WITH MAQUOKETA VALLEY ELECTRIC COOPERATIVE
FROM 2% TO 3% ON THE SALE OF ELECTRICITY WITHIN THE CITY OF
DUBUQUE
Notice is hereby given that the City Council of the City of Dubuque will hold a public
hearing on a proposed ordinance, increasing the existing 2% franchise fee to 3% on the
sale of electricity by Maquoketa Valley Electric Cooperative within the city of Dubuque.
Said public hearing will be held at 6:30 p.m. in the City Council Chambers, Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, on Monday, February 15, 2010.
The City Council of the City of Dubuque, pursuant to resolution adopted the 1 day of
February, 2010, has approved the attached revenue purpose statement, outlining the
purposes for which the City shall use the franchise fee revenues that it will receive if the
ordinance is adopted.
Jeanne F. Schneider, CMC
City Clerk
Preparer: Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001
Telephone: (563) 583 -4113
ORDINANCE NO. -10
INCREASING THE FRANCHISE FEE OF TWO PERCENT (2 %) OF THE
GROSS REVENUE OF MAQUOKETA VALLEY ELECTRIC COOPERATIVE,
ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE SALE OF
ELECTRICITY WITHIN THE CITY OF DUBUQUE TO THREE PERCENT (3 %)
Whereas, City of Dubuque Ordinance No. 20 -04, adopted by the City
Council on the 5 th day of April, 2004, granted to Maquoketa Valley Electric
Cooperative, its successors and assigns (hereinafter referred to collectively as
the Company), nonexclusive authority through October 3, 2018, to maintain and
operate its electrical system within the limits of the city of Dubuque; and
Whereas, Ordinance No. 20 -04 imposed a franchise fee equal to two
percent (2 %) of the gross revenue of the Company generated from the sale of
electricity within the city of Dubuque; and
Whereas, Ordinance No. 20 -04 provided further that the City Council
reserved the right to increase or decrease the amount of such franchise fee as it
determined to be in the public interest; and
Whereas, the City Council has determined that it is in the best interests of
the City of Dubuque to increase the franchise fee to three percent (3 %).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
The first paragraph of Ordinance No. 20 -04 is amended to read as follows:
Section 1. Effective and for the term of the
franchise, Company shall pay to City a fee equal to three percent (3 %) of
the gross revenue generated from the sale of electricity within the city of
Dubuque. City shall provide Company with a map depicting its current
corporate boundaries and shall notify Company of any changes to the
same.
Attest:
Passed, approved and adopted the 15 day of February, 2010.
Jeanne F. Schneider, City Clerk
Roy D. Buol, Mayor
F:\ USERS\ tsteckle\ Lindahl \Ordinances\FranchiseFees_Maq uoketaValleyTo3 %_011410.doc