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Wasco Electric raises franchise-fee concerns as Maupin council considers formal ordinance
Summary
Wasco Electric told the Maupin City Council it has been paying a 3% gross fee and asked to negotiate terms for a formal franchise ordinance; city attorney noted state law allows up to a 5% privilege fee. Council asked staff to continue working with Wasco Electric counsel.
Wasco Electric General Manager Lindsay Forepaugh told the City of Maupin Council that the cooperative has been remitting a 3% gross fee to the city for years and is seeking a formal franchise agreement to clarify responsibilities.
"We have been operating with paying that 3% franchise agreement for a number of years," Forepaugh said, explaining the cooperative recently itemized the charge on member bills and is concerned about indemnity language in a proposed ordinance. City Attorney Ruben Cleaveland told council the co-op has legally paid a 3% fee without a formal franchise and that Oregon statute permits the city to recoup up to 5% in lieu of a franchise.
Councilors asked how the fee is passed to customers and whether raising the fee would be appropriate. Councilor Randy Bechtol said he would be reluctant to increase the charge on residents. Attorney Cleaveland said the council retains final authority and that he will continue discussions with Wasco Electric counsel and return with recommended language for formal consideration.
The council did not vote on an ordinance at the meeting; the matter will return to a future agenda after the city attorney and Wasco Electric counsel negotiate outstanding points, including indemnity provisions and how the fee is applied.
