In consideration of the right and franchise granted to MidAmerican Energy Company (the “Company”) in Section 9-1-1 of this chapter, a franchise fee equal to five percent of the gross receipts minus uncollectable amounts derived by the Company in the City for delivery and sale of natural gas, shall be imposed from and after January 1, 2011 until December 1, 2032.
1. The amount of franchise fee shall be shown separately on the utility bill to each customer. The Company shall remit collected franchise fees to the City on a quarterly basis, within 30 days after the last day of the last revenue month of each quarter of the calendar year (i.e., remitted by April 30, July 31, October 31, and January 31). The City shall not modify the level of the franchise fee more frequently than once in any 12-month period.
2. The City shall be solely responsible for the proper use of any amounts collected as franchise fees, and shall only use such franchise fees for purposes as allowed by State law and as set forth in the Revenue Purpose Statement adopted by the City.
3. The franchise fee shall be applied to all customers’ bills in accordance with Chapters 364.2(f) and 423B.5 of the Code of Iowa, except for the City’s bills which shall be exempt from the franchise fee.
4. Upon receipt of a final and unappealable order or approval authorizing annexation or changes in the corporate boundaries of the City, the Clerk shall provide written notification to the Company of such annexation or change in the corporate boundaries of the City, and the Company shall apply the franchise fee to its customers who are affected by the annexation or change in the corporate boundaries of the City, commencing no more than 90 days after receipt of the written notice and City’s verification of the area added to the City.
5. To fulfill the purpose and intent of this section, the City and the Company may enter into an agreement addressing the implementation of the collection of the franchise fee, which agreement shall be approved by resolution by the City.