The city reserves the right to impose a franchise fee pursuant to the Iowa Code, on the gross revenue of the company, minus uncollectible accounts, derived from the distribution and the retail sale of electricity by the company to customers within the current or future corporate limits of the city. The city shall provide the company with ninety (90) days' advance notice of the effective date of any franchise fee put into effect by the city. The city may require the company to provide an accounting to establish that the fee has been correctly calculated. The city may include a requirement that an audit of the calculation and basis for calculation of the franchise fee be conducted by an auditor of the city's selection and the company will cooperate with such an audit. Said audit shall not be conducted more than once a year. The city shall pay the costs of the audit unless the audit shows an underpayment of franchise fees by an amount equal to three percent (3%) or more of the fees, in which event the company shall pay the cost of the audit. (Ord. 07-4294, 11-27-2007)