Franchise Fee Ordinance Amendment_Alliant EnergyMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Franchise Fee Ordinance Amendment - Alliant Energy
DATE: January 16, 2014
City Attorney Barry Lindahl is recommending that a Public Hearing be set for
February 3, 2014, to amend the franchise fee ordinances with Alliant Energy.
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
BARRY LINDAHL
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
DATE: January 15, 2014
RE: Franchise Fee Ordinance Amendment - Alliant Energy
In 1993, the City Council granted a utility franchise to Interstate Power Company, its
successors and assigns. Alliant Energy is the successor to Interstate Power Company.
The franchise ordinance provided that the City Council could impose a franchise fee not
to exceed 3% of the company's gross revenues from the sale of electricity in the city. In
2003, the City Council imposed a fee of 2% which was increased to 3% in 2010.
The franchise fee ordinances provided for a rebate to certain customers exempt from
sales tax on the sale of electricity. However, the ordinances did not establish a
procedure for requesting a rebate.
The attached ordinance repeals the former ordinance provisions relating to the rebate.
The proposed ordinance also requires that effective July 1, 2013, a request for a rebate
must be submitted to the City Manager in the City's fiscal year in which the customer
pays the franchise fee.
I recommend that the proposed ordinance be submitted to the City Council for
consideration.
A resolution setting a public hearing on the proposed ordinance is also attached.
BAL:tls
Attachment
cc: Ken TeKippe, Finance Director
F:\ USERS \tsteckle \Lindahl \Franchise Fee Rebate Requests From Tax Exempt Entitites\ MVM_ ProposedOrdinance _ElectricAlliant_011514.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
RESOLUTION NO. 17 -14
SETTING A PUBLIC HEARING ON A PROPOSED ORDINANCE AMENDING THE
FRANCHISE FEE ORDINANCES UNDER THE CITY'S ELECTRIC FRANCHISE WITH
ALLIANT ENERGY BY REPEALING SECTION 3 OF ORDINANCE NO. 58 -03
PROVIDING FOR A REBATE OF FRANCHISE FEES FOR EXEMPT SALES OF
ELECTRICITY TO CUSTOMERS OF INTERSTATE POWER COMPANY, ITS
SUCCESSORS AND ASSIGNS, AND ESTABLISHING A PROCEDURE FOR
REQUESTING A REBATE OF SUCH FEES
Whereas, Ordinance No. 58 -93 granted to Interstate Power Company, its successors
and assigns (the Company) a franchise to maintain and operate an electrical system in the
City of Dubuque, Iowa; and
Whereas, Alliant Energy is the successor to Interstate Power Company; and
Whereas, Ordinance No. 58 -93 authorized the City Council to impose a franchise fee
not to exceed 3% of the gross revenue of the Company generated from the sale of
electricity within the city; and
Whereas, Ordinance No. 58 -03, as amended by Ordinance No. 75 -03, imposed upon
the Company a fee equal to 2% of the gross revenue generated from the sale of
electricity within the city and stated that certain sales were exempt from the fee and that a
procedure for the rebate of such exempt fees would be provided but did not establish a
procedure for requesting such rebates; and
Whereas, Ordinance No. 58 -03, as amended by Ordinance No. 7 -10, increased the fee to
• 3% of the gross revenue generated from the sale of electricity within the city; and
Whereas, certain customers of the Company did not request a rebate of such fees until
December of 2013; and
Whereas, the City Council of the City of Dubuque finds that the delay in requesting a
rebate is not a reasonable period of time and that it is not in the bests interests of the
citizens of the City of Dubuque to honor such requests; and
Whereas, the City Council finds that a reasonable period of time in which to request a
rebate is in the fiscal year in which a customer pays such fees to the Company; and
Whereas, the City Council intends to amend the franchise fee ordinance as set forth in the
proposed Ordinance attached hereto; 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 adopt the proposed
Ordinance.
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
Ordinance in the City Council Chambers at the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, on Monday, February 3, 2014, 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 in the form attached hereto, according to law.
Passed, approved and adopted this 21st day of January, 2014.
Attest:
Ii`i '�i :I
Kevin irnstahl, ity C''s'
1041
Roy D. Buol, Mayor
NOTICE OF PUBLIC HEARING
ON A PROPOSED ORDINANCE ON A PROPOSED ORDINANCE AMENDING THE
FRANCHISE FEE ORDINANCES UNDER THE CITY'S ELECTRIC FRANCHISE WITH
ALLIANT ENERGY BY REPEALING SECTION 3 OF ORDINANCE NO. 58 -03
PROVIDING FOR A REBATE OF FRANCHISE FEES FOR EXEMPT SALES OF
ELECTRICITY TO CUSTOMERS OF INTERSTATE POWER COMPANY, ITS
SUCCESSORS AND ASSIGNS, AND ESTABLISHING A PROCEDURE FOR
REQUESTING A REBATE OF SUCH FEES
Notice is hereby given that the City Council of the City of Dubuque will hold a public
hearing on a proposed ordinance, amending the franchise fee ordinances under the
City's electric franchise with Alliant Energy by repealing Section 3 of Ordinance no. 58-
03 providing for a rebate of franchise fees for exempt sales of electricity to customers of
Interstate Power Company, its successors and assigns, and establishing a procedure
for requesting a rebate of such fees. 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 3, 2014.
Kevin S. Firnstahl, CMC
City Clerk
F: \USERS\isteckle \Lindahl\ Ordinances \NoticeOfPu bliceHearin gOn ProposedOrdinan ce_Electric I PC_011614.doc
ORDINANCE NO. ______-14
REPEALING SECTION 3 OF ORDINANCE NO. 58-03 PROVIDING FOR A REBATE
OF FRANCHISE FEES FOR EXEMPT SALES OF ELECTRICITY TO CUSTOMERS
OF INTERSTATE POWER COMPANY, ITS SUCCESSORS AND ASSIGNS, AND
ESTABLISHING A PROCEDURE FOR REQUESTING A REBATE OF SUCH FEES
Whereas, Ordinance No. 58-93 granted to Interstate Power Company, its
successors and assigns (the Company) a franchise to maintain and operate an
electrical system in the City of Dubuque, Iowa; and
Whereas, Alliant Energy is the successor to Interstate Power Company; and
Whereas, Ordinance No. 58-93 authorized the City Council to impose a franchise
fee not to exceed 3% of the gross revenue of the Company generated from the sale of
electricity within the city; and
Whereas, Ordinance No. 58-03, as amended by Ordinance No. 75-03, imposed
upon the Company a fee equal to 2% of the gross revenue generated from the sale of
electricity within the city and stated that certain sales were exempt from the fee and that
a procedure for the rebate of such exempt fees would be provided but did not establish
a procedure for requesting such rebates; and
Whereas, Ordinance No. 58-03, as amended by Ordinance No. 7-10, increased
the fee to 3% of the gross revenue generated from the sale of electricity within the city;
and
Whereas, certain customers of the Company did not request a rebate of such
fees until December of 2013; and
Whereas, the City Council of the City of Dubuque finds that the delay in
requesting a rebate is not a reasonable period of time and that it is not in the best
interests of the citizens of the City of Dubuque to honor such requests; and
Whereas, the City Council finds that a reasonable period of time in which to
request a rebate is in the fiscal year in which a customer pays such fees to the
Company.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. Section 3 of Ordinance No. 58-03 is hereby repealed.
Section 2. Ordinance No. 58-03 is amended by adopting the following new
Section 3:
Section 3.
(1) Effective July 1, 2013, the fee imposed by Section 1
of Ordinance No. 58-03, as amended by Ordinance No. 7-10, shall
not apply to any sale of electricity 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, unless it is impracticable to
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.
(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.
Passed, approved and adopted the ____ day of _______________, 2014.
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
F:\USERS\tsteckle\Lindahl\Ordinances\FranchiseFee_Sec3RepealOrd58-03_ElectricIPC_011414.docx