Franchise Fee Ordinance Amendment_Maquoketa Valley Electric CooperativeMasterpiece 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 an amendment to the City Franchise Fee
Ordinance.
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 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
Jennifer Larson, Budget Director
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
ORDINANCE NO. 8-14
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 3rd day of February, 2014.
Attest:
Kevi S. Firnstahl, City Clerk
F:\ USERS \tsteckle \Lindahl\ Ordinances\ FranchiseFee_ 3rdParRepeal20- 04_MCEC_011414.docx
CITY OF DUBUQUE
OFFICIAL NOTICE
Notice is hereby given
that the City Council of
the City of Dubuque
will hold a public hear-
.
ing on a proposed ordi-
nance, amending the
franchise fee ordinan-
ces under the City's
electric franchise with
Maquoketa Valley Elec-
tric Cooperative by
repealing the third un-
numbered paragraph
of Section 23 of Ordi-
nance No. 20-04 provid-
ing for a rebate of fran-
chise fees for exempt
sales of electricity to
customers of Maquo-
keta Valley Electric Co-
operative, its succes-
sors and assigns, and
establishing a proce-
dure for requesting a
rebate of such fees.
Said public hearing will
be held at 6:30 p.m. in
the City Council Cham-
bers, Historic Federal
Building, 350 West 6th
Street, Dubuque, Iowa,
on Monday, February 3,
2014.
Copies of supporting
documents for the pub-
lic hearings are on file
in the City Clerk's Of-
fice and may be
viewed during normal
working hours.
Written comments re-
garding the above pub-
lic hearings may be
submitted to the City
Clerk's Office on or be-
fore 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 meas-
ures.
Any visual or hearing
impaired persons
needing special assis-
tance or persons with
special accessibility
needs should contact
the City Clerk's Office
at (563) 589-4100 or
TTY (563) 690-6678 at
least 48 hours prior to
the meeting.
Kevin S. Firnstahl
City Clerk
it 1/24
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: January 24, 2014, and for which the charge is $20.02.
Subscribed to before
this day of
Notary Public in and for Dubuque County, Iowa,
, 20
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154885
My Comm. Exp. FEB. 1. 2017
OFFICIAL
' r PUBLICATION Section 1. The third
I ORDINANCE NO.8-14 ' unnumbered para-
f REPEALING THE graph of Section 23 of STATE OF IOWA {SS:
THIRD UNNUMBERED \ Ordinance No. 20-04 is
' PARAGRAPH OF SEC- hereby repealed.
TION 23 OF ORDI- Section 2. Section 23 DUBUQUE COUNTY
NANCE NO. 20-04 ;of Ordinance No.20-04
PROVIDING FOR •A . Is amended by adding
REBATE OF FRAN- I the following new third
CHISE FEES FOR EX-
EMPT SALES OF unnumbered para
ELECTRICITY TO CUS- i Effective July 1,2013, CERTIFICATION OF PUBLICATION
TOMERS OF MAQUO- the fee imposed by
KETA VALLEY ELEC- Section 23 of Ordi-
TRIC COOPERATIVE, nance No. 20-04, as
ITS SUCCESSORS amended by Ordinance
,AND ASSIGNS, AND No.9-10,shall not ap-
.ESTABLISHING A-j ply to any sale of elec- 4
PROCEDURE FOR RE- tricity by the Company ; I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
QUESTING A REBATE that Is exempt under
OF,SUCH FEES Iowa Code Section corporation,publisher of the Telegraph Herald,a newspaper of general circulation
Whereas, Ordinance 423.3 from the tax im-
No. 20-04 granted to posed by Iowa Code published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
Maquoketa Valley Elec-
I tic Cooperative, its ! Section 423.2 and in certifythat the attached notice waspublished in said newspaper on the following
the amoun
successors and assigns of comh ufee the Compat =
(the Company) aa fran- , ny shall not Include dates: February 07, 2014, and for which the charge is $29.46.
chise to maintain and I; such sales,unless it Is
operate an electrical I impracticable to so, in
system in the City of which event the City
Dubuque,Iowa;and IManager shall provide'I
Whereas, Ordinance a rebate of the amount
No. 20-04, Imposed of the fee for such ex-
upon the Company a empt sales of electrics-
;fee equal to 2%of the ty to Company's cus- pc
�ngross revenue generat tourers provided a "`c
ed from the sale of i written request is sub-
electricity within the mitted by a customer
city and stated that to the City Manager in•;
certain sales were ex- the City's fiscal year
empt from the fee and (July 1 - June 30) In
the rethat bateoof such rocedure ex-or � which the customer I
empt fees would be j pays such fees.Any re-
bate of franchise fees
eprovided stablish aut procedure not? ' which may have been I',
available under any � Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
for requesting such re- , prior amendment or or- '
bates;and dinance which was not this / d• — �4 , 20/ftWhereas, Ordinance paid prior to July 1, i
No.20-04,as amended 2013, Is declared void /
by Ordinance No.9-10, and any claim for any
Increased the fee to such rebate shall not
3% of the gross reve- be honored or paid by
, nuue generated from the city. --1)
the sale of electricity
Passed,approved and
within the city;and A'otary
. the Whereas, the City ; February,2014d cay of
Council finds that a :• /s/Roy D.Buol,Mayor
reasonable period of Attest:/s/Kevin S. Public in and fo Aubuque County, Iowa.
time In which to re- ,Flrnstahl,City Clerk
;quest a rebate Is in the ! Published officially In
fiscal year In which a I the Telegraph Herald
'
customer pays such newspaper on the 7th I
fees to the Company. day of February,2014.
NOW, THEREFORE, /s/Kevin S.Firnstahl,
BE IT ORDAINED BY ! City Clerk 1 Q'"
THE CITY COUNCIL it 2/7 � MARY K. n Number
15488
OF THE CITY OF DU- x Commission Number 154885
, BUQUE,IOWA: IoW*- My Comm. Exp. FEB. 1,2017