Utility Franchise Agree Amendment
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MEMORANDUM
March 29, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Utility Franchise Agreements with Aquila and Alliant
Energy
In 2003 the City Council adopted amendments to the gas and electricity franchise
agreements imposing a two percent franchise fee on the sales of gas and electricity.
The franchise agreements exempt sales of gas and electricity to customers from the
franchise fee who are exempt from the sales tax on those utilities.
With the phase-out of the sales tax on gas and electricity over the next several years,
residential customers will eventually be exempt from sales tax on gas and electricity,
and, under the franchise fee ordinances, residential customers would then also be
exempt from the franchise fee. That was not the City's intent when the franchise fee
was adopted. .
Finance Director Ken TeKippe is recommending City Council approval of an
amendment to the franchise fee ordinances with Aquila and Alliant Energy to state that
the franchise fee applies to all sales of gas or electricity to residential customers,
regardless of sales tax exemptions. This amendment will result in the continuation to
collect franchise fees from residential customers even if the State of Iowa eliminates the
sales tax on utilities. This was the original intent of the ordinance and is simply a
cleaning-up of the ordinance language.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
. ¡ . ¡l ¡J
{11tcJl,Æ L~?¡2h~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
FROM:
Michael C. Van Milligen, City Manager
Ken TeKippe, Finance Director 1~ G'~
TO:
SUBJECT: Amendment to Franchise Agreements with Aquila and Alliant Energy
DATE:
March 16, 2004
In 2003, the City Council adopted amendments to the gas and electricity franchise
agreements imposing a two percent franchise fee on the sales of gas and electricity.
The franchise agreements exempts sales of gas and electricity to customers from.the
franchise fee who are exempt from the sales tax on those utilities.
With the phase-out of the sales tax on gas and electricity over the next several years,
residential customers will eventually be exempt from sales tax on gas and electricity,
and, under the franchise fee ordinances, residential customers would then also be
exempt from the franchise fee. That was not the City's intent when the franchise fee
was adopted.
Enclosed are amendments to the franchise fee ordinances with Aquila and Alliant
Energy to provide that the franchise fee applies to all sales of gas or electricity to
residential customers regardless of sales tax exemptions. The amendment would result
in the continuation of collecting franchise fees from residential customers even if the
State of Iowa eliminates the sales tax on utilities.
I recommend that the franchise agreement amendments be submitted to the City
Council for approval at the April 5, 2004 public hearing. If you have any questions on
the amendments, please feel free to contact me.
KT/jg
Enclosures
cc: Barry Lindahl, Corporation Counsel
Preparer: Barrv A. Lindahl 300 Main Street Suite 330 Dubuaue IA 5200115631 583-4113
ORDINANCE NO. 21-04
AMENDING ORDINANCE NO. 58-03 ESTABLISHING A FRANCHISE FEE OF
TWO PERCENT (2%) OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY,; ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE
SALE OF ELECTRICITY WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 58-93 (City of Dubuque
Code of Ordinances Appendix D), adopted by the City Council on the 4th
day of October 1993, granted to Interstate Power Company, its successors
and assigns (hereinafter referred to collectively as the Company),
nonexclusive authority for a period of twenty-five (25) years to. maintain
and operate its electrical system within the limits of the City of Dubuque;
and
Whereas, Ordinance No. 58-93 provides that the City Council may,
impose a franchise fee not to exceed three (3) percent of the gross revenue
of the Company generated from the sale of electricity within the City of
Dubuque; and
Whereas, the City Council by the adoption of Ordinance No. 58-03
established a franchise fee; and
Whereas, the City Council by Ordinance No. 75-3 amended
Ordinance No. 58-03; and
Whereas, the City Council finds it necessary to further amend
Ordinance No. 58-03.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. Ordinance No. 58-03 is amended to read as follows:
ORDINANCE NO. 58-03
ESTABLISHING A FRANCHISE FEE OF TWO PERCENT (2%)
OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY, ITS SUCCESSORS AND ASSIGNS, GENERATED
FROM. THE SALE OF ELECTRICITY WITHIN THE CITY OF
DUBUQUE .
Section 1. Effective October 1, 2003 and for the term of
the franchise granted by Ordinance No. 58-93, there is hereby
imposed upon the Company a fee equal to two percent (2%) of
the gross revenue generated fromíhe sale of electricity within
the City of Dubuque.
Section 2. The Company shall on the fifteenth day of
each month, commencing November 15, 2003, provide to the
City Manager in a form acceptable to the City Manager records
establishing the gross revenues from the sale of electricity by
the Company within the City of Dubuque for the preceding
month and shall pay the fee to the City within thirty (30) days
following the last day ofthe preceding month.
Section 3. The fee imposed by Sec. 1 shall not apply to
any. sale of electricity by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code §
422.43 and in computing the amount of the fee, the Company
shalt not include such sales, unless it is impracticable to do
so, itJ which event the City Manager may provide for a rebate
of the amount of the fee for such exempt sales of electricity to
the Company's customers. Notwithstanding the foregoing, the
fee imposed herein shall apply to all sales of electricity by the
company to residential customers.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this 5th day of April,
.2004.
Terrance M. Duggan, Mayor
Jeanne F. Schneider, City Clerk
"
. .
Preparer: Barrv A. Lindahl 300 Main Street Suite 330 DubuQue IA 520011563) 583-4113
ORDINANCE NO.
AMENDING ORDINANCE NO. 59-03 ESTABLISHING A FRANCHISE FEE OF TWO
PERCENT (2%) OF THE GROSS REVENUE OF PEOPLES NATURAL GAS
COMPANY, ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE
DISTRIBUTION AND SALE OF NATURAL GAS OR MIXED GAS WITHIN THE CITY
OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 43-93 (City of Dubuque Code of
Ordinances Appendix C), adopted by the City Council on the 19th day of July,
1993,granted to Peoples Natural Gas Company, its successors and assigns
(hereinafter referred to collectively as the Company), nonexclusive authority for a
period of twenty-five (25) years to maintain and operate its gas. distribution
system within the limits of the City of Dubuque; and
Whereas, Ordinance No. 43-93 provides that the City Council may, impose
a franchise fee not to exceed three (3) percent of the gross revenue of the
Company generated from the sale. of natural and mixed gas within the City of
Dubuque; and
Whereas, the City Council by the adoption of Ordinance No. 59-03
established a franchise fee; and
Whereas, the City Council by the adoption of Ordinance No. 76-03 amended
Ordinance No. 59-03; and
Wherealil, the City Council finds it necessary to further amend Ordinance
No. 59-03. .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. Ordinance No. 59-03 is amended to read as follows:
ORDINANCE NO. 59-03
ESTABLISHING A FRANCHISE FEE OF TWO PERCENT (2%) OF THE
GROSS REVENUE OF PEOPLES NATURAL GAS COMPANY, . ITS
SUCCESSORS AND ASSIGNS, GENERATED FROM THE
",
",
DISTRIBUTION AND SALE OF NATURAL GAS OR MIXED GAS
WITHIN THE CITY OF DUBUQUE
Section 1. Effective October 1, 2003 and for the term of the
franchise granted by Ordinance No. 43-93, there is hereby imposed
upon the Company a fee equal to two percent (2%) of the gross
revenue generated from the sale of natural and mixed gas within the
City of Dubuque.
Section 2. The Company shall on the fifteenth day of each
month, commencing November 15,2003, provide to the City Manager
'in a form acceptable to the City Manager records establishing the
gross revenues from the sale of natural and mixed gas by the
Company within the City of Dubuque for the preceding month and
shall pay the fee to the City within thirty (30) days following the last
day of the preceding month.
Section 3. The fee imposed by Sec. 1 shall not apply to any.
sale of natural and mixed gas by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code § 422.43. The
City shall, prior to October 1, 2003, and thereafter as persons on the
exemption list are changed by the City, provide the Company with a
list of the names of persons who are exempt from the fee and in
computing the amount of the fee, the Company shall not include any
sales to such persons. Notwithstanding the foregoing, the fee
imposed herein shall apply to all sales of electricity by the company
to residential customers.
The City Manager shall provide a procedure for the rebate of
the fee to persons who are partially exempt under § 422.45 from the
tax imposed by Iowa Code § 422.43 for sales of natural and mixed
gas to the Company's customers.
Section 4. If for any reason the time and manner of collecting,
or any aspect of the franchise fee, is challenged by or before the
Iowa Utilities Board, Company shall promptly give notice to City and
the ColJlpany shall, in any case, diligently and continuously
exercis~s its efforts to sustain said fee and payments and the time
and mariner of its collection.lfat any time the Iowa Utilities Board, or
any other authority having proper jurisdiction, prohibits the City from
imposing the franchise fee called for herein, the Company will no
"
, '
longer be obligated to collect and pay the franchise fee herein. The
City agrees to save harmless the Company, its employees or agents
from and against all claims, demands, losses and expenses arising
out of the collection of the franchise fee from the Company's
customers or in remitting the franchise fee amounts collected to the
City; provided, however, that the City shall not be required to save
harmless the Company from claims, demands, losses and expenses
arising out of the negligence of the Company, its employees or
agents
Section 5. The amount billed by the Company for the sale of
natural gas or mixed gas to its customers may be adjusted for any
net write-off of uncollectible accounts and corrections of bills
theretofore rendered, and past or future franchise fees remitted to
theCity'may be adjusted accordingly by the Company to reflect the
lawful or necessary correction to billing and collection from its
customers for natural gas sold within the corporate limits of the City.
Section 6. The City shall provide copies of annexation
ordinances to the Company on a timely basis to ensure appropriate
franchise fee collection from customers within the corporate limits of
the City.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this 15th day of September, 2003.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC
City Clerk
,.'
",
EFFECT OF AMENDMENT
Section 3. The fee imposed by Sec. 1 shall not apply to any
sale of natural and mixed gas by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code § 422.43. The
City shall, prior to October 1, 2003, and thereafter as persons on the
exemption list are changed by the City, provide the Company with a
list of the names of persons who are exempt from the fee and in
computing the amount of the fee, the Company shall not include any
sales to such persons. NotwithstandinQ the foreQoinQ. the fee
imposed herein shall apply to all sales of electricity by the company
to residential customers.
Preparer: Barrv A. lindahf300 Main Street Suite 330 DubuQue fA 52001/563\ 583-4113
ORDINANCE NO. 21-04
AMENDING ORDINANCE NO. 58-03 ESTABLISHING A FRANCHISE .FEE OF
TWO PERCENT (2%) OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY,' ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE
SALE OF ELECTRICITY WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 58-93 (City of Dubuque
Code of Ordinances Appendix D), adopted by the City Council on the 4th
day of October 1993, granted to Interstate Power Company, its successors
and assigns (hereinafter referred to collectively as the. Company),
nonexclusive authority for a period of twenty-five (25) years to maintain
and operate its electrical system within the limits of the City of Dubuque;
and .
Whereas, Ordinance No. 58-93 provides that the City Council may,
impose a franchise fee not to exceed three (3) percent of the gross revenue
of the Company generated from the sale of electricity within the City of
Dubuque; and
Whereas, the City Council by the adoption of Ordinance No. 58-03
established a franchise fee; and .
Whereas, the City Council by Ordinance No. 75-3 amended
Ordinance No. 58-03; and
Whereas, the City Council finds it necessary to further amend
Ordinance No. 58-03.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. Ordinance No. 58-03 is amended to read as follows:
ORDINANCE NO. 58-03
ESTABLISHING A FRANCHISE FEE OF TWO PERCENT (2%)
OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY, ITS SUCCESSORS AND ASSIGNS, GENERATED
FROM THE SALE OF ELECTRICITY WITHIN THE CITY OF
DUBUQUE
Section 1. Effective October 1, 2003 and for the term of
the franchise granted by Ordinance No. 58-93, there is hereby
imposed upon the Company a fee equal to two percent (2%) of
the gross revenue generated from the sale of electricity within
the City of Dubuque. .
Section 2. The Company shall on the fifteenth day of
each month, commencing November 15, 2003, provide to the
City Manager ina form acceptable to the City Manager records
establishing the gross revenues from the sale of electricity by
the Company within the City of Dubuque for the preceding
month and shall pay the fee to the City within thirty (30) days
following the last day of the preceding month.
Section 3. The fee imposed by Sec. 1 shall not apply to
any sale of electricity by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code §
422.43 and in computing the amount of the fee, the Company
shalt not include such sales, unless it is impracticable to do
so, ill which event the City Manager may provide for a rebate
ofthe amount of the fee for such exempt sales of electricity to
the Company's customers. Notwithstanding the foregoing, the
fee imposed herein shall apply to all sales of electricity by the
company to residential customers.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this 5th day of April, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
.v
"
. t
EFFECT OF AMENDMENT
Section 3. The fee imposed by Sec. 1 shall not apply to
any sale of electricity by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code §
422.43 and in computing the amount of the fee, the Company
shall not include such sales, unless it is impracticable to do
so, in which event the City Manager may provide for a rebate
of the amount of the fee for such exempt sales of electricity to
the Company's customers. Notwithstandina the foreaoina. the
fee imposed herein shall apply to all sales of electricity bv the
company to residential customers.
~
RESOLUTION NO.
109
-04
SETTING A PUBLIC HEARING ON AN AMENDMENT TO THE FRANCHISE
AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND AQUILA
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council shall conduct a public hearing on a proposed
amendment to the Franchise Agreement between the City of Dubuque, Iowa and Aquila
at the Carnegie Stout Public Library Auditorium, 360 West 11th Street, Dubuque, Iowa,
on Monday, April 5, 2004, beginning at 6:30 p.m.
Section 2. That the City Clerk be and is hereby authorized and directed to
publish notice of the public hearing, according to law.
Passed, approved and adopted this ~ day of March, 2004.
Attest:
~f ~üiJ)
'. eanne F. Schneider
City Clerk
~.
..
Pfepafef: BaITY A. Lindahl 300 Main Stfeet Suite 330 Dubuaue IA 52001/5631 583-4113
ORDINANCE NO. 22-04
AMENDING ORDINANCE NO. 59-03 ESTABLISHING A FRANCHISE FEE OF TWO
PERCENT (2%) OF THE GROSS REVENUE OF PEOPLES NATURAL GAS
COMPANY, ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE
DISTRIBUTION AND SALE OF NATURAL GAS OR MIXED GAS WITHIN THE CITY
OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 43-93 (City of Dubuque Code of
Ordinances Appendix C), adopted by the City Council on the 19th day of July,
1993, granted to Peoples Natural Gas Company, its successors and assigns
(hereinafter referred to collectively as the Company), nonexclusive authority for a
period of twenty-five (25) years to maintain and operate its gas distribution
system within the limits of the City of Dubuque; and
Whereas, Ordinance No. 43-93 provides that the City Council may, impose
a franchise fee not to exceed three (3) percent of the gross revenue of the
Company generated from the sale of natural and mixed gas within the City of
Dubuque; and
Whereas, the City Council by the adoption of Ordinance No. 59-03
established a franchise fee; and
Whereas, the City Council by the adoption of Ordinance No. 76-03 amended
Ordinance No. 59-03; and
Wherea!¡l, the City Council finds it necessary to further amend Ordinance
No. 59-03. '
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. Ordinance No. 59-03 is amended to read as follows:
ORDINANCE NO. 59-03
ESTABLISHING A FRANCHISE FEE OF TWO PERCENT (2%) OF THE
GROSS REVENUE OF PEOPLES NATURAL GAS COMPANY, . ITS
SUCCESSORS AND ASSIGNS, GENERATED FROM THE
,.
DISTRIBUTION AND SALE OF NATURAL GAS OR MIXED GAS
WITHIN THE CITY OF DUBUQUE
Section 1. Effective October 1, 2003 and for the term of the
franchise granted by Ordinance No. 43-93, there is hereby imposed
upon the Company a fee equal to two percent (2%) of the gross
revenue generated from the sale of natural and mixed gas within the
City of Dubuque.
Section 2. The Company shall on the fifteenth day of each
month, commencing November 15,2003, provide to the City Manager
in a form acceptable to the City Manager records establishing the
gross revenues from the sale of natural and mixed gas by the
Company within the City of Dubuque for the preceding month and
shall pay the fee to the City within thirty (30) days following the last
day of the preceding month.
Section 3. The fee imposed by Sec. 1 shall not apply to any
sale of natural and mixed gas by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code § 422.43. The
City shall, prior to October 1, 2003, and thereafter as persons on the
exemption list are changed by the City, provide the Company with a
list of the names of persons who are exempt from the fee and in
computing the amount of the fee, the Company shall not include any
sales to such persons. Notwithstanding the foregoing, the fee
imposed herein shall apply to all sales of electricity by the company
to residential customers.
The City Manager shall provide a procedure for the rebate of
the fee to persons who are partially exempt under§ 422.45 from the
tax imposed by Iowa Code § 422.43 for sales of natural and mixed
gas to the Company's customers.
Section 4. If for any reason the time and manner of collecting,
or any aspect of the franchise fee, is challenged by or before the
Iowa Utilities Board, Company shall promptly give notice to City and
the Co!JIpany shall, in any case, diligently and continuous.ly
exercises its. efforts to sustain said fee and payments and the time
and marmer ofits collection. If at any time the Iowa Utilities Board, or
any other authority having proper jurisdiction, prohibits the City from
imposing the franchise fee called for herein, the Company will no
'. .
J'
longer be obligated to collect and pay the franchise fee herein. The
City agrees to save harmless the Company, its employees or agents
from and against all claims, demands, losses and expenses arising
out of the collection of the franchise fee from the Company's
customers or in remitting the franchise fee amounts collected to the
City; provided, however, that the City shall not be required to save
harmless the Company from claims, demands, losses and expenses
arising out of the negligence of the Company, its employees or
agents
Section 5. The amount billed by the Company for the sale of
/ natural gas or mixed gas to its customers may be adjusted for any
net. write-off of uncollectible accounts and corrections of bills
theretofore rendered, and past or future franchise fees remitted to
the City'may be adjusted accordingly by the Company to reflect the
lawful or necessary correction to billing and collection. from its
customers for natural gas sold within the corporate limits of the City.
Section 6. The City shall provide copies of annexation
ordinances to the Company on a timely basis to ensure appropriate
franchise fee collection from customers within the corporate limits of
the City.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this 5th day of Apri 1, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
,.
EFFECT OF AMENDMENT
Section 3. The fee imposed by Sec. 1 shall not apply to any
sale of natural and mixed gas by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code § 422.43. The
City shall, prior to October 1, 2003, and thereafter as persons on the
exemption list are changed by the City, provide the Company with a
list of the names of persons who are exempt from the fee and in
computing the amount of the fee, the Company shall not include any
sales to such persons. NotwithstandinQ the foreaoina, the fee
imposed herein shall apply to all sales of electricity bv the company
to residential customers.
~7
RESOLUTION NO.
110
-04
SETTING A PUBLIC HEARING ON AN AMENDMENT TO THE FRANCHISE
AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND ALLIANT ENERGY
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council shall conduct a public hearing on a proposed
amendment to the Franchise Agreement between the City of Dubuque, Iowa and Alliant
Energy at the Carnegie Stout Public Library Auditorium, 360 West 11th Street, Dubuque,
Iowa, on Monday, April 5, 2004, beginning at 6:30 p.m.
Section 2. That the City Clerk be and is hereby authorized and directed to
publish notice of the public hearing, according to law.
Passed, approved and adopted this ~ day of March, 2004.
Attest:
~/~~
. eanne F. Schneider
City Clerk
Preparer: Barrv A. Lindahl 300 Main Street Suite 330 Dubuaue IA 520011563\ 583-4113
ORDINANCE NO.
AMENDING ORDINANCE NO. 58-03 ESTABLISHING A FRANCHISE FEE OF
TWO PERCENT (2%) OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY,' ITS SUCCESSORS AND ASSIGNS, GENERATED FROM THE
SALE OF ELECTRICITY WITHIN THE CITY OF DUBUQUE
Whereas, City of Dubuque Ordinance No. 58-93 (City of Dubuque
Code of Ordinances Appendix D), adopted by the City Council on the 4th
day of October 1993, granted to Interstate Power Company, its successors
and assigns (hereinafter referred to collectively as the Company),
nonexclusive authority for a period of twenty-five (25). years to maintain
and operate its electrical system within the limits of the City of Dubuque;
and
Whereas, Ordinance No. 58-93 provides that the City Council may,
impose a franchise fee not to exceed three (3) percent of the gross revenue
of the Company generated from the sale of electricity within the City of
Dubuque; and
Whereas, the City Council by the adoption of Ordinance No. 58-03
established a franchise fee; and
Whereas, the City Council by Ordinance No. 75-3 amended
Ordinance No. 58-03; and
Whereas, the City Council finds it necessary to further amend
Ordinance No. 58-03.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. Ordinance No. 58-03 is amended to read as follows:
ORDINANCE NO. 58-03
ESTABLISHING A FRANCHISE FEE OF TWO PERCENT (2%)
OF THE GROSS REVENUE OF INTERSTATE POWER
COMPANY, ITS SUCCESSORS AND ASSIGNS, GENERATED
FROM THE SALE OF ELECTRICITY WITHIN THE CITY OF
DUBUQUE
Section 1. Effective October 1, 2003 and for the term of
the franchise granted by Ordinance No. 58-93, there is hereby
imposed upon the Company a fee equal to two percent (2%) of
the gross revenue generated from the sale of electricity within
the City of Dubuque.
Section 2. The Company shall on the fifteenth day of
each month, commencing November 15, 2003, provide to the
City Manager in a form acceptable to the City Manager records
establishing the gross revenues from the sale of electricity by
the Company within the City of Dubuque for the preceding
month and shall pay the fee to the City within thirty (30) days
following the last day of the preceding month.
Section 3. The fee imposed by Sec. 1 shall not apply to
any sale of electricity by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code §
422.43 and in computing the amount of the fee, the Company
shalt not include such sales, unless it is impracticable to do
so, ill which event the City Manager may provide for a rebate
of the amount of the fee for such exempt sales of electricity to
the Company's customers. Notwithstanding the foregoing, the
fee imposed herein shall apply to all sales of electricity by the
company to residential customers.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this - day of
,2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC
City Clerk
EFFECT OF AMENDMENT
Section 3. The fee imposed by Sec. 1 shall not apply to
any sale of electricity by the Company that is exempt under
Iowa Code § 422.45 from the tax imposed by Iowa Code. §
422.43 and in computing the amount of the fee, the Company
shall not include such sales, unless it is impracticable to do
so, in which event the City Manager may provide for a rebate
of the amount of the fee for such exempt sales of electricity to
the Company's customers. Notwithstandina the foreaoina. the
fee imposed herein shall apply to all sales of electricity bv the
company to residential customers.