In December of 2017 the City of Orofino annexed 45 acres of real property known as the Konkolville area. The Konkolville area is a developed area which is contiguous to the Orofino City Limits consisting of approximately 37 individual residential homes and businesses. All homes and businesses receive full city services such as water, sewer, police, fire, and building services.

The City of Orofino’s electrical power needs are provided by Avista Utilities, a private utility company. The Konkolville area is served by the Clearwater Power Company, a not-for-profit utility owned by the people they serve. Once the Konkolville area was annexed into the city, so was a portion of the Clearwater Power infrastructure system and 37 of their customers.

The City of Orofino has an existing Franchise Ordinance with Avista Utilities assessing a 3% fee for all electrical power sold within the city limits. Ordinance 707, which is the Avista Franchise Agreement, is a non-exclusive agreement that allows other utility companies to compete against each other. The agreement stipulates that if other Franchises are authorized, then the Franchise Fee needs to be equal to what Avista is paying. There is no increase for existing residents within the city who receive electrical services from Avista Utilities: but vou still have the right to vote on the issue as a citizen of the City of Orofino. This fee only affects newly annexed residents of the Konkolville area. The city is simply following Franchise Ordinance 707, which provides that all residents will be paying the same Franchise Fee for electrical power throughout the city.

The funds that are generated through the franchise fee will help pay for city operations such as police and fire protection, street improvements, building inspection, planning and zoning services, legislative and executive operations and airport activities.

It is the desire of the Governing Body of Orofino to enter into a Franchise Agreement with Clearwater Power Company as the same 3% fee Avista is paying.

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