Chapter 1 code of ordinances

CHAPTER 111

ELECTRIC FRANCHISE

111.01 Franchise Granted	111.07 Services
111.02 Right-of-Way Granted	111.08 Franchise Fee
111.03 Excavations and Construction	111.09 Hold Harmless
111.04 Meters	111.10 Fees to Be Paid by Company
111.05 System	111.11 Repeal Conflicting Ordinances
111.06 Franchise Not Exclusive	111.12 Term of Agreement

111.01 FRANCHISE GRANTED. There is hereby granted to Interstate Power and Light Company, hereinafter referred to as the Company, its successors and assigns, the right and franchise to acquire, construct, erect, maintain and operate in the City works and plants for the manufacture and generation of electricity and a distribution system for electric light, heat, and power, and the right to erect and maintain the necessary poles, lines, wires, conduits, and other appliances for the distribution of electric current along, under, and upon the streets, avenues, alleys, and public places in the City, and also the right to erect and maintain upon the streets, avenues, alleys, and public places electric lines through the City, to supply individuals, corporations, communities and municipalities both inside and outside of the City with electric light, heat and power for a period of twenty-five (25) years,^† subject to a limited right of cancellation at the end of the fifteenth (15th) year anniversary of the Anniversary Date as defined herein; also, the franchise includes any right of eminent domain which may be provided in Section 364.2 of the Code of Iowa.

111.02 RIGHT-OF-WAY GRANTED. The poles, wires, and appliances shall be placed and maintained so as not to interfere unnecessarily with the travel on said streets, avenues, alleys and public places in said City, or to interfere unnecessarily with the proper use of the same, including ordinary drainage, or with the sewers, underground pipe and other property of the City, and the Company, its successors and assigns, shall hold the City free and harmless from all damages arising from any negligent acts or omissions of the Company or the Company’s agents in the erection or maintenance of said system.

111.03 EXCAVATIONS AND CONSTRUCTION. In making any excavations in any streets, avenues, alleys or public place, the Company, its successors and assigns, shall protect the site while work is in progress by placing guards, barriers, or signals, and shall not unnecessarily obstruct the use of the streets, and shall backfill all openings in such manner as to prevent settling or depressions in the surface, pavement or sidewalk of such excavations with same materials, restoring the condition as nearly as practical and if any defects are caused shall repair the same. If Company removes any concrete, asphalt, or other hard surface, Company shall replace same immediately. Any and all backfilling, repair, replacement or surfacing, whether hard surface or not, shall be done in a good, workmanlike and reasonable manner. The Company shall, at its own cost and expense, locate and relocate its existing facilities or equipment in, on, over, or under any public street, avenue, alley or other public place in the City in such manner as the City may at any time reasonably require for the purposes of facilitating the construction, reconstruction, maintenance or repair of the street, avenue, alley or public place or any public improvement thereon or to reasonably promote the efficient operation of such improvement or for any other reasonable cause. The City shall consider reasonable alternatives in designing its public works projects so as not to cause the Company unreasonable additional expense in exercising its authority under this section and shall not arbitrarily require Company to relocate its services. The City shall provide a reasonable alternative location for the Company's facilities, unless Company agrees that a reasonable alternative location is not available. The City shall give the Company reasonable advance written notice in the event the City vacates a public right-of-way. If the City orders the Company to relocate its existing facilities or equipment for the primary benefit of a commercial or private (non-public) project, Company shall receive payment for the cost of such relocation prior to such relocation. The vacation of a public right of way shall not deprive Company of its right to operate and maintain existing facilities, unless and until the reasonable cost of relocating its existing facilities or equipment is paid to Company.

111.04 METERS. The Company, its successors and assigns, shall furnish and install all meters at its own expense and shall provide the service wire to buildings as set forth in the Company’s tariff filed with the Iowa Utilities Board.

111.05 SYSTEM. The system authorized by this chapter shall be modern and up-to-date and shall be of sufficient capacity to supply all reasonable demands of the City and its inhabitants and shall be kept in a modem and up-to-date condition.

111.06 FRANCHISE NOT EXCLUSIVE. The franchise granted by this chapter shall not be exclusive.

111.07 SERVICES. Service to be rendered by the Company under the franchise shall be continuous unless prevented by fire, acts of God, unavoidable accidents or casualties, or reasonable interruptions necessary to properly service the Company’s equipment, and in such event service shall be resumed as quickly as reasonably possible.

111.08 FRANCHISE FEE.

1. 
   In its monthly billing the Company shall include a franchise fee of 0% on the gross receipts from the sale of electricity for customers within the City limits. The Company shall commence collecting the 0% franchise fee on the date of January 1 or July 1, following six months from the date of the acceptance by the Company of the ordinance codified in this chapter and the filing of that acceptance with the City Clerk. The franchise fee may increase up to a maximum of 5% on or after January 1, 2010. The City shall give the Company a minimum six-month notice prior to the implementation of an increase in the franchise fee. 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 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.
   
2. 
   The franchise fee shall be applied to all customers’ bills in accordance with Code of Iowa Chapter 364.2(f) and 423B.5. The Company shall not grant exemptions or refunds of the franchise fee beyond that granted by the Code of Iowa. If at any time the Iowa Utilities Board or another authority having proper jurisdiction prohibits the collection or payment of a franchise fee, the Company shall be relieved of its obligation to collect and pay the franchise fees to the City.
   
3. 
   The franchise fee shall be in lieu of any other payments to the City for the Company’s use of streets, avenues, alleys and public places in the City and other administrative or regulatory costs with regard to said franchise; and said poles, lines, wires, conduits and other appliances for the distribution of electric current along, under and upon any streets, avenues, alleys or public places in the City to supply individuals, corporations, communities, and municipalities both inside and outside of said City with electric light, heat and power shall be exempt from any special assessment, tax levied by the City, license or rental charge during the term of the franchise. Upon receipt of a final and unappealable order or approval authorizing any voluntary or involuntary annexation or any changes in the City limits, the City Clerk shall provide written notification to an officer or designated representative of the Company of such annexation or change of the City limits, and the Company shall apply the franchise fee to its customers who are affected by the annexation or change in the City limits, commencing six months from the receipt of the written notice.
   
4. 
   Any additional charges for the franchise fee or any related fees shall be shown separately on the utility bill to each customer. The Company shall collect franchise fees and shall remit them to the City on a quarterly basis within thirty (30) days after the last day of the last revenue month of the quarter.
   
5. 
   A franchise fee shall not be assessed to the City as a customer.
   
6. 
   The City agrees to bear any costs, including attorney fees, and to defend, indemnify and hold Company harmless from any and all liability, claims, or causes of action associated with disputes related to the billing and/or collection of the franchise fee, provided that the City shall not be obligated to bear such costs or to defend, indemnify and hold Company harmless if such disputes arise from claims of inaccurate billing by Company due to Company’s wrongful intentional or negligent acts.
   

111.09 HOLD HARMLESS. The Company, during the term of the franchise, agrees to save and hold harmless the City from and against all claims, demands, losses and expenses arising directly out of the negligence of the Company, its employees or agents, in the construction, operation and maintenance of any facilities or appurtenances of the Company or reasonable use thereof.

111.10 FEES TO BE PAID BY COMPANY. Any expenses associated with the publication of the franchise ordinance shall be paid by the Company.

111.11 REPEAL CONFLICTING ORDINANCES. The franchise ordinance, when accepted by the Company, shall constitute the entire agreement between the City and the Company relating to this franchise and the same shall supersede all prior ordinances pertaining to the franchise agreement, and any terms and conditions of such prior ordinances or parts thereof in conflict with this chapter are hereby repealed. In no event shall the obligations of the Company or the fees associated with the franchise be modified or altered unless otherwise approved and accepted by the Company.

111.12 TERM OF AGREEMENT. The term of the franchise and the rights granted thereunder shall continue for the period of twenty-five (25) years from and after its acceptance by the Company, as herein provided. The City may cancel this franchise on the fifteenth (15^th) year anniversary of the Anniversary Date of the franchise by notifying Company in writing of its desire to do so, said notification to be given within thirty (30) days of said 15^th year anniversary. If Company is not notified of the cancellation by the 15^th year anniversary, then the franchise shall continue without cancellation until the 25^th year. The Anniversary Date shall be the date the franchise is filed with the City Clerk or is otherwise effective by operation of law.

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