1. The Cooperative shall include a franchise fee at a rate of three percent (3.00%) of the gross receipts from the sale of electricity for customers within the City Limits of North Liberty, Johnson County, Iowa. At any time during the term of the Franchise Agreement, the City may amend said franchise fee. The Cooperative shall commence collecting the franchise fee at the specified rate within six months of the date the City notifies the Cooperative of adoption or amendment of the franchise fee.
The franchise fee may increase up to a maximum of five percent (5%) as allowed by law. The City shall be solely responsible for the proper use of any amounts collected as franchise fees, and shall only use such fees as collected for a purpose as allowed by applicable law. Collection of the franchise fee shall cease at the earlier of the City’s repeal of the franchise fee or the end of the franchise term. Notwithstanding the foregoing, the collection of any franchise fee shall be in accordance with applicable law, including but not limited to any limitations upon the collection of such franchise fee.
(Ord. 2023-27 – Jan. 24 Supp.)
2. The franchise fee shall be applied to all customers’ bills in accordance with Iowa Code Section 364.2(f) and 423B.5, as amended, and subject to any modifications or the repeal of same. Only the City may grant exemptions or refunds of the franchise fee granted by the Code of Iowa applicable at the time of such exemption or refund. If at any time the Iowa Utilities Board or another authority having proper jurisdiction prohibits the collection or payment of a franchise fee, the Cooperative shall be relieved of its obligation to collect and pay to the City the franchise fee.
3. The City agrees that the Cooperative’s obligations related to the franchise fee are limited to those obligations set forth in this section. The City further agrees to bear all costs (including attorney fees), and to defend, indemnify and hold the Cooperative harmless from any and all liability, claims or causes of action associated with disputes related to the billing and/or collections of the franchise fee, provided that the City shall not be obligated to bear such costs or to defend, indemnify and hold the Cooperative harmless if such disputes are the result of inaccurate billing or negligence by the Cooperative.
4. Upon receipt of a final and unappealable order or approval authorizing annexation, or changes in the limits of the City, the City Clerk shall provide written notification to an officer of the Cooperative of such annexation or change in the limits of the City, and the Cooperative shall apply the franchise fee to its members who are affected by the annexation or change in the limits of the City, commencing no later than six (6) months from the effective date of the annexation.
5. The sum of such additional charges for the franchise fee and any additional charges related to this section shall be shown separately on the utility bill to each member.
6. The Cooperative shall remit collected franchise fees to the City on a basis determined by the City, but no more frequently than monthly, within thirty (30) days after last day of the last revenue month of the quarter.