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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