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HomeMy WebLinkAbout2005-40 AFN Surcharge RESOLUTION NO. 2005- 40 A RESOLUTION TO REPEAL RESOLUTION 2005-36 AMENDING 1'HE IMPLEMENTATION DATE FOR THE ASHLAND FIBER NETWORK SURCHARGE ON ELECTRIC ACCOUNTS Recitals: A. The City of Ashland operates Ashland Electric Utility to provide electricity to customers within the City limits of Ashland. B. The City of Ashland also operates Ashland Fiber Network (AFN) which uses a fiber optic backbone to provide cable television and internet services to customers within the City of Ashland. C. The Ashland Electric Utility utilizes the AFN fiber optic backbone to transmit data important to the operation of the electric utility and therefore finds it appropriate to subsidize the operation of AFN. D. The City established a $7.50 surcharge on all electric accounts effectivle with Cycle 2 billings prepared on or after October 7, 2005, through Resolution 200!5-36. E. The City finds it beneficial to repeal Resolution 2005-36 and defer the implementation of the AFN surcharge on electric utility customer accounts allowing staff time to propose changes to the calculation and relief to low income customers. THE CITY OF ASHLAND RESOLVES AS FOllOWS: SECTION 1. The City of Ashland adopts a $7.50 surcharge on electric account billings to provide a subsidy to Ashland Fiber Network, said surcharge to begin with Cycle 2 billings prepared on or after January 10, 2006. SECTION 2. The electric utility accounts that have been billed under Resolution 2005-36 are to be credited for the AFN Surcharge resulting in no payment of the surcharge being required per that resolution. SECTION 3. The surcharge revenue is not subject to the Electric Utility Tax or included in the franchise fee calculation for General Fund Revenues. SECTION 4. Resolution 2005-36 is repealed. 1- Resolution - Repeal 2005-36 Delaying AFN Surcharge ImplementationG:\IegaI\PAUL\FORMS\resolution form.wpd - T SECTION 5. This resolution takes effect upon signing by the Mayor. This resolution was read by title only in accordance with Ashland Municipal Code 92.04.090 duly PASSED and ADOPTED this 18th day of October, 2005. Ai~~ Barbara Christensen, City Recorder SIGNED and APPROVED this / t day of tJ t:/F6...r- ,2005. Reviewed as to form: VvvL-vv. v~ Mike Reeder, Assistant City Attorney 2- Resolution - Repeal 2005-36 Delaying AFN Surcharge ImplementationG:\legal\PAUL\FORMS\resolution form. wpd ~ T