HomeMy WebLinkAbout2026-01-05 Ordinance 3171_Franchise Fee, Electricity, Natural GasORDINANCE NO. 3171
AN ORDINANCE IMPOSING A FRANCHISE FEE IMPOSING A FRANCHISE FEE ON
MIDAMERICAN ENERGY COMPANY IN THE AMOUNT OF 2% OF THE GROSS
RECEIPTS DERIVED BY THE COMPANY FROM THE TRANSMISSION OR
DISTRIBUTION OF ELECTRICITY AND NATURAL GAS TO CUSTOMERS WITHIN
THE CORPORATE LIMITS OF THE CITY PURSUANT TO IOWA CODE SECTION
364.2 (2025).
WHEREAS, the City of Waukee, Iowa has adopted franchise ordinances with MidAmerican
Energy Company, for the purpose of granting the right and franchise to operate gas and electric
facilities within the City; AND
WHEREAS, pursuant to the gas and electric franchises granted to MidAmerican Energy
Company, and Iowa Code 364.2 (2025), the City has the authority to impose franchise fees; AND
WHEREAS, the City Council has adopted a "Revenue Purpose Statement" and as required by
Iowa Code § 364.2(4)(1) and it has been published in the manner provided by Iowa Code § 362.3;
AND
WHEREAS, the City Council of the City of Waukee has published notice and held a public
hearing regarding the proposed ordinance imposing franchise fees in an amount equal to a 2% of
the gross receipts derived by the Company from the transmission or distribution of natural gas and
electricity to customers within the corporate limits of the City as required by Iowa Code section
364.2 (2025).
BE IT ORDAINED by the City Council of the City of Waukee, Iowa:
Section 1. Franchise Fee. A franchise fee is hereby imposed in an amount equal to 2%
of the gross revenues, minus uncollectible accounts, derived by MidAmerican Energy Company
("Company") from the transmission or distribution of electricity and natural gas to customers
within the corporate limits of the City (excluding, however, the sale of electricity and natural gas
to the City).
A. The franchise fee shall be remitted by the Company to the City on or before the last
business day of the month following the close of the calendar quarter in which the franchise fee is
charged.
B. The Company will use its best efforts to commence collection of franchise fees on or
before the first Company billing cycle of the first calendar month following ninety (90) days of
receipt of Information required of the City to implement the franchise fee.
C. The Company shall collect franchise fees from customers in newly annexed areas after
such ordinances have been provided to the Company by certified mail from the City. The Company
will use its best efforts to commence collecting franchise fees in the annexed areas no later than
sixty (60) days after receiving annexation ordinances from the City.
D. Company shall not, under any circumstances be required to return or refund any
franchise fees that have been collected from customers and remitted to the City.
E. With respect to the distribution or transportation by the Company of natural gas sold to
the customer by a third -party supplier of the commodity, the percentage of gross revenues shall be
applied to the customer's full cost of gas delivered within the City, including all costs of
acquisition, ownership, and transportation whereof, wherever incurred. In determining the amount
of the fee, the Company may presume that the customer's commodity cost of gas is the same as if
the gas were sold by the Company, unless a different cost is provided by Customer to Company.
Section 2. Repealer. All ordinances or parts of ordinances in conflict with the provisions
of this ordinance are hereby repealed.
Section 3. Severability Clause. If any section, provision or part of this ordinance shall
be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the
ordinance as a whole or any section, provisions or part thereof not adjudged invalid or
unconstitutional.
Section 4. Effective Date. This ordinance shall be in effect from and after its final
passage, approval and publication as provided by law.
Passed by the Council the 5th day of January, 2026, and approved this 5th day of January, 2026.
Courtney Clarke, Mayor
Attest:
Rebecca D. Schuett, City Clerk