Franchise Fee Ordinance Amendment_Maquoketa Valley ElectricMasterpiece on the Mississippi
Dubuque
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2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Franchise Fee Ordinance Amendment - Maquoketa Valley Electric
Cooperative
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 Maquoketa Valley
Electric Cooperative.
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 - Maquoketa Valley Electric
Cooperative
In 2004, the City Council granted a utility franchise to Maquoketa Valley Electric
Cooperative. The franchise ordinance 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 _ElectricMVEC_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. 19 -14
SETTING A PUBLIC HEARING ON A PROPOSED ORDINANCE AMENDING THE
FRANCHISE FEE ORDINANCES UNDER THE CITY'S ELECTRIC FRANCHISE
WITH MAQUOKETA VALLEY ELECTRIC COOPERATIVE BY REPEALING THE
THIRD UNNUMBERED PARAGRAPH OF SECTION 23 OF ORDINANCE NO. 20 -04
PROVIDING FOR A REBATE OF FRANCHISE FEES FOR EXEMPT SALES OF
ELECTRICITY TO CUSTOMERS OF MAQUOKETA VALLEY ELECTRIC
COOPERATIVE, ITS SUCCESSORS AND ASSIGNS, AND ESTABLISHING A
PROCEDURE FOR REQUESTING A REBATE OF SUCH FEES
Whereas, Ordinance No. 20 -04 granted to Maquoketa Valley Electric Cooperative,
its successors and assigns (the Company) a franchise to maintain and operate an
electrical system in the City of Dubuque, Iowa; and
Whereas, Ordinance No. 20 -04, 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. 20 -04, as amended by Ordinance No. 9 -10, increased the
_ fee to 3% of the gross revenue generated from the sale of electricity within the city;
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 ordinances 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, 014.
Attest:
Kevin S irnstahl, City Clerk
Roy D. Buol, Mayor
ORDINANCE NO. -14
REPEALING THE THIRD UNNUMBERED PARAGRAPH OF SECTION 23 OF
ORDINANCE NO. 20 -04 PROVIDING FOR A REBATE OF FRANCHISE FEES FOR
EXEMPT SALES OF ELECTRICITY TO CUSTOMERS OF MAQUOKETA VALLEY
ELECTRIC COOPERATIVE, ITS SUCCESSORS AND ASSIGNS, AND
ESTABLISHING A PROCEDURE FOR REQUESTING A REBATE OF SUCH FEES
Whereas, Ordinance No. 20 -04 granted to Maquoketa Valley Electric
Cooperative, its successors and assigns (the Company) a franchise to maintain and
operate an electrical system in the City of Dubuque, Iowa; and
Whereas, Ordinance No. 20 -04, 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. 20 -04, as amended by Ordinance No. 9 -10, increased
the fee to 3% of the gross revenue generated from the sale of electricity within the city;
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. The third unnumbered paragraph of Section 23 of Ordinance No. 20-
04 is hereby repealed.
Section 2. Section 23 of Ordinance No. 20 -04 is amended by adding the
following new third unnumbered paragraph:
Effective July 1, 2013, the fee imposed by Section 23 of Ordinance
No. 20 -04, as amended by Ordinance No. 9 -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. 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\isteckle \Lindahl \Ordinances \Fran chiseFee_ 3rdParRepeal20- 04_MCEC_011414.docx
NOTICE OF PUBLIC HEARING
ON A PROPOSED ORDINANCE AMENDING THE FRANCHISE FEE ORDINANCES
UNDER THE CITY'S ELECTRIC FRANCHISE WITH MAQUOKETA VALLEY
ELECTRIC COOPERATIVE BY REPEALING THE THIRD UNNUMBERED
PARAGRAPH OF SECTION 23 OF ORDINANCE NO. 20 -04 PROVIDING FOR A
REBATE OF FRANCHISE FEES FOR EXEMPT SALES OF ELECTRICITY TO
CUSTOMERS OF MAQUOKETA VALLEY ELECTRIC COOPERATIVE, 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 Maquoketa Valley Electric Cooperative by repealing the
third unnumbered paragraph of Section 23 of Ordinance no. 20 -04 providing for a
rebate of franchise fees for exempt sales of electricity to customers of Maquoketa Valley
Electric Cooperative, 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 MV EC_011614.doc