RESOLUTION NO. 2005-____

A RESOLUTION ADDING A SURCHARGE TO ELECTRIC UTILITY RATES FOR THE PURPOSE OF SUBSIDIZING ASHLAND FIBER NETWORK

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 beneficial to subsidize the operation of AFN.

D. The City finds it beneficial to establish a surcharge on electric utility customer rates for the purpose of subsidizing AFN.

THE CITY OF ASHLAND RESOLVES AS FOLLOWS:

SECTION 1. The City of Ashland adopts a $_______ surcharge on billings for electric usage to provide a subsidy to Ashland Fiber Network, said surcharge to begin with Cycle 1 billings prepared on or after October 1, 2005.

SECTION 2. The surcharge revenue is not subject to the Electric Utility Tax or included in the franchise fee calculation for General Fund Revenues.

SECTION 3. This resolution takes effect upon signing by the Mayor.

This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly

PASSED and ADOPTED this ______day of ______, 2005:
Barbara Christensen, City Recorder

SIGNED and APPROVED this ______day of ______, 2005:
John W. Morrison, Mayor

Reviewed as to form:
Michael W. Franell, City Attorney