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Utility Franchise Agree Amendment D~ ~<k~ 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.