Maquoketa Valley Electric Cooperative Franchise Agreement_Hearing Copyright 2014
City of Dubuque Public Hearings # 1.
ITEM TITLE: Maquoketa Valley Electric Cooperative Franchise Agreement
SUMMARY: Proof of publication on notice of public hearing to consider Amending City
of Dubuque Code of Ordinances Sec. 11-5B-23: Franchise Fee by
increasing the franchise fee to 5% of the gross revenue generated from
the sale of electricity within the city by Maquoketa Valley Electric
Cooperative effective June 1 , 2015 and the City Attorney recommending
approval.
ORDINANCE Amending City of Dubuque Code of Ordinances Sec. 11-56-
23: Franchise Fee, Which Imposed a Franchise Fee of Three Percent (3%)
on the Gross Revenue Generated from the Distribution and Sale of
Electricity Within the City of Dubuque by Maquoketa Valley Electric
Cooperative, by increasing such fee to five percent (5%)
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Motion B; Motion A
ATTACHMENTS:
Description Type
❑ Staff Memo Staff Memo
❑ Ordinance Ordinance
❑ Suggested_Motion A& B Supporting Documentation
THE CM OF
DUB bE MEMORANDUM
Masterpiece on the Mis issippi
BARRY LINDA
CITY ATTORN Y
To: Michael . Van Milligen
City Manager
Members of the City Council
DATE: March 11, 2015
RE: Public Hearing On An Ordinance Amending City Of Dubuque Code Of
Ordinances 11-513-23 Which Imposed A Franchise Fee Equal To Three
Percent Of The Gross Revenue Generated By The Sale Of Electricity In The
City Of Dubuque By Maquoketa Valley Electric Cooperative By Increasing
The Fee To 5%
In 2004, the City Council granted a utility franchise to Maquoketa Valley Electric
Cooperative. The franchise ordinance, now City of Dubuque Code of Ordinances
Section 11-513-23, imposed a fee of 2% on the gross revenue generated by the sale of
electricity within the city. The fee was increased to 3% in 2010.
Section 11-5B-23 also provides that the City Council reserves the right by amendment
to that section to increase or decrease the amount of such franchise fee as it
determines to be in the public interest.
The attached ordinance amends the franchise agreement, Section 11-513-23, by
increasing the franchise fee to 5% of the gross revenue generated from the sale of
electricity within the city by Maquoketa Valley Electric Cooperative.
The ordinance previously sent to the City Council on March 2, 2015 referenced an
effective date of July 1, 2015 for this increase. Please note the attached ordinance
contains the correct effective date of June 1, 2015.
1 recommend that the ordinance amending the franchise agreement, Section 11-513-23,
by increasing the franchise fee to 5% of the gross revenue generated from the sale of
electricity within the city by Maquoketa Valley Electric Cooperative be submitted to the
City Council for consideration.
BAL:tIs
Attachment
cc: Jennifer Larson, Budget Director
Ken TeKippe, Finance Director
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
Preparer: Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001
Telephone: (563) 583-4113
ORDINANCE NO. 13-15
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SEC. 11-5B-23:
FRANCHISE FEE, WHICH IMPOSED A FRANCHISE FEE OF THREE PERCENT
(3%) ON THE GROSS REVENUE GENERATED FROM THE DISTRIBUTION
AND SALE OF ELECTRICITY WITHIN THE CITY OF DUBUQUE BY
MAQUOKETA VALLEY ELECTRIC COOPERATIVE, BY INCREASING SUCH
FEE TO FIVE PERCENT (5%)
Whereas, City of Dubuque Ordinance No. 20-04 (City of Dubuque Code of
Ordinances Title 11, Chapter 5B), 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, City of Dubuque Code of Ordinances §11-5B-23 imposed a
franchise fee equal to three percent (3%) of the gross revenue of the Company
generated from the sale of electricity 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 such franchise fee to five percent (5%).
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. City of Dubuque Code of Ordinances § 11-5B-23 is hereby
amended to read as follows:
11-5B-23: FRANCHISE FEE
Effective June 1, 2015, and for the term of the franchise, the company shall
pay to the city a fee equal to five percent (5%) of the gross revenue generated
from the sale of electricity within the city. 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 May 15,
2004, 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.
Effective July 1, 2013, the fee imposed by section 23 of ordinance 20-04,
as amended by ordinance 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 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 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.
The city council reserves the right by amendment to this article 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 upon publication.
Passed, approved and adopted the 16th day of Mar , 2015.
Attest:
Trish L. Gleason, Assistant City Clerk
Roy D. Buol, Mayor
EFFECT OF AMENDMENT
11-513-23: FRANCHISE FEE:
Effective June 1 , X02015, and for the term of the franchise, the company shall
pay to the city a fee equal to tree—five percent (�5%) of the gross revenue
generated from the sale of electricity within the city. 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 May 15, 2004,
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.
Effective July 1 , 2013, the fee imposed by section 23 of ordinance 20-04, as
amended by ordinance 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 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 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.
The city council reserves the right by amendment to this article to increase or
decrease the amount of such franchise fee as it determines to be in the public
interest.
3
I move to receive and file the communications and further move that the requirement
that a proposed Ordinance be considered and voted on for passage at two Council
meetings prior to the meeting at which is to be finally passed be suspended. (Motion B)
Vote — Then
I move final consideration and passage of the Ordinance. (Motion A)
If Motion B does not pass:
I move to receive and file the communications and I move first (second or third)
consideration of the Ordinance. (Motion A)
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: March 18, 2015, and for which the charge is $39.02.
Subscribed to before m. a Notary Public in and for Dubuque County, Iowa,
this Aga day of /,
,20 /67 .
Notary Public in and for Dubuque County, Iowa.
d6RY K. WEETE6 MEYER
Commission Number 154885
My Comm. Exp. FEB. 1, 2017
OFFICIAL,‘"
PUBLICATION
ORDINANCE NO.13-15
AMENDING CITY OF
DUBUQUE CODE OF:
ORDINANCES SEC. 41-
58'23: FRANCHISE FEE,
WHICH IMPOSED
FRANCHISE FEE OF
THREE:; PERCENT; (3%)
AN ,TME ,GROSSgnREY-E-
NUE"GENERATED FROM
THE = DISTRIBUTION acceptable, to the<
AND".. SALE `OF ;ELEC- I, company, and the city
TRICITY WITHIN THE
CITY OF DUBUQUE BY ' managerrecords
M TAVALLEY nering thes
ELECTRIC COOPERA- revenues from the sale
TIVE,BY INCREASING of electricity by 4the
SUCH
FEETO FIVE company' within tthe
(
PERCENT (5%) � city of Dubuque for the
Whereas, City of preceding month and
Dubuque Ordinance shall tihe feeth
the
No. 0=04 (City of city (30)
d
dafQllowingthe; last
Dubuque Code of y ,of . 'preceding
Ordinances Title.. 11, month: the "
Chapter 5B), adopted Effective July 1, 2013,
by the City Council on the Effective
Imposed by
the 5th day 'of April, section 23 of ordinance
2004, granted' to 20 04 as amended by
triMaquoketa aie Elets li ordinance 9=10, shall;
successors
esorSadCooperative,:its , not to any sale of
(he(herenafte referred
I electricity by the
colt e Lively r' as the J company that "is
Company),
`an the ekempti under .v Iowa
sive auyo through"noou- Code ,section 423.3
Octoberce authority r ' from the tax imposed
3;" 2 to
maintain and operate,i by Iowa Code. Section
its electrical, : system 424atid rn "Computing- I
withinthe limits of the I the company ofthe
fnotee, I1,
city of Whereas,eaand include ° such ''sales,
DCity of unless it is imprac- 1
Ordinances
- Code of ticable' to do so, in i
imed franchise I which `'event the city 1
imposed a fral toanchise ee manager shall provide 1
percene t (3%) of the a rebate of the amount '
gross", revenue of the of the fee for such
Companygenerated exempt sales of 1
from the sale of electricity to com
electricity within the pany's customers pro -
city of
ro-cityof Dubuque; and vided a written request 1
Whereas, the City is submitted by a
Council has - deter- customeratageritotthecici y"
bestsed that itisin the fiscal', year (July " 1 -
of,' us Dubuque the June 30) in which the
increase
of t frail- customer pays such ;
increase such vfees. Any rebate of I
chisepercentfee to - five franchise fees which l
OW,' may have been avail-
NOW, THEREFORE, BE able;:; under any prior
CI ORDAINED BY THE amendment -=or ordi- _I
CITY -COUNCIL OF THE rice which. was not
CITY OF DUBUQUE,:paid' prior to: July 1, li
IOWA: 2013, is declared void
SectionD` i.' of and any claim for any
uduque Codee of such rebate shall not
isihereby amended tto
Ordinances ,§ ed o be honored paid by.
city.
read as follows; . theThe city council
'11-5B-23: FRANCHISE reserves the right!by
FEE a amendment " to this"
Effective termee 1, of2the article to increase or
fand for any decrease the; amount
sranchiay, the company 1 of such franchise fee
shall pay to the city a
feeequal to five 1 as It determines to be
percent= (5%) of the 1 in the public' interest.
gross ",`revenue dener- ' Section 2. This Ordi-
ated from the sale of nance shall take, effect
electricity within the upon publication,"
city. The city shall Passed, approved and
provide the company adopted .the `.16th. day
with a map depicting of March, 2015.
its current corporate Attes//Rby D: Duh, Mayor
boundaries and shall Gleason, Assistant City
notify the company of � Clerk
any changes to the Published officially in
Same.
The company shall on the
oh the Heraldh 8th
theamontfifteeh, day ;,.e- day of March, 2015.
each month, 15mmence t
provide to /s/Trish L. Gleason,
May , 1 the city 2 city Assistant City Clerk
ltl/18
manager in a form
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: March 06, 2015, and for which the charge is $26.10.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this /dea day of , 20 /g' .
CITY OF DUBUQUE
OFFICIAL NOTICE
NOTICE OF PUBLIC
HEARING OF THE rCITY
COUNCIL OF THE 'CITY
OF DUBUQUE, STATE
OF IOWA, ON THE
MATTER OF AN OR-
DINANCE ; AMENDING
CITY OF DUBUQUE
CODE OF ORDINANCES
SEC. 11-5B-23: FRAN-
CHISE FEE, - WHICH
IMPOSED A FRANCHISE
FEE OF THREE
PERCENT (3%) ON THE
GROSS REVENUE GEN-
ERATED FROM THE
DISTRIBUTION AND
SALE OF ELECTRICITY
WITHIN THE CITY OF
DUBUQUE BY MAQUO-
KETA -VALLEY COOP-
ERATIVE, BY INC-
REASING SUCH FEE TO
FIVE PERCENT (5%),
PUBLIC ,NOTICE is
hereby given that the
City Council of the City
of Dubuque, State of
Iowa, will meet on the
12th day of March,
2075, at 6:30 P.M., in
the City Council Cham-
bers, Historic Federal
Building, 350 W. -6th
reet, Dubuque, Iowa,
at which meeting the
City Council proposes
to consider the
adoption of an
ordinance amending
the franchise agree-
ment with Maquoketa II
Valley Electric Coop-
erative, City of Dubu-
que Ordinances § 11-i
58-23, which imposed a
Notary Public in and for Dubuque County, Iowa.
franchise fee equal to
three per cent (3%) on
the.; grossrevenue
generatedfrom the
distribution andsale of
electricity within the
City of Dubuque, by
increasing such fee to
five percent (5%).
A copy of the
proposed ordinance is
on file at the Office of
the City Clerk, City
Hall, 50 W. 13th Street,
Dubuque, Iowa.
Written comments
regarding the ordi-
nance may be
submitted to the City.
Clerk on or before the
time of the public
hearing.
At said time and place
of the public hearing,
all interested citizens
opportunitywill be given
to address
the city _ council
regarding the pro-
posed ordinance.
This Notice is given by
order of the City
Council of Dubuque,
Iowa, as provided by
Sections 364.2(4) and
362.3 of the Code of
Iowa, as amended.
Dated this 2nd day of
March, 2015.
Trish L. Gleason,
Assistant City Clerk
1t 3/6
ARY K. WESTERMEYER
Cornmission Number 154885
My Comm, Exp. FEB, 1, 2017