Chapter 111—Electric Franchise

111.01 Franchise Granted
111.02 Poles and Wires; Indemnification
111.03 Excavations
111.04 Construction and Maintenance
111.05 Meters
111.06 System Requirements
111.07 Nonexclusive
111.08 Continuous Service
111.09 Franchise Fee
111.10 Term of Franchise
111.11 Entire Agreement

111.01 FRANCHISE GRANTED.

There is hereby granted to INTERSTATE POWER & 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 of Roland, Story County, Iowa, 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 said City of Roland, Story County, Iowa; also the right to erect and maintain upon the streets, avenues, alleys and public places, electric lines through the said City of Roland, Story County, Iowa, to supply individuals, corporations, communities, and municipalities both inside and outside of said City with electric light, heat and power for the period of twenty-five (25) years, † subject to a limited right of cancellation at the end of the fifteenth (15th) year anniversary date as defined within; also the right of eminent domain as provided in Section 364.2 of the Code of Iowa.

111.02 POLES AND WIRES; INDEMNIFICATION.

The poles, wires and appliances shall be placed and maintained so as not to unnecessarily interfere with the travel on said streets, alleys, and public places in said City nor unnecessarily interfere with the proper use of the same, including ordinary drainage, or with the sewers, underground pipe and other property of the City, and the said Company, its successors and assigns shall hold the City free and harmless from all damages arising from the negligent acts or omissions of the Company in the erection or maintenance of said system.

111.03 EXCAVATIONS.

In making any excavations in any street, alley, avenue or public place, Company, its successors and assigns, shall protect the site while work is in progress by guards, barriers or signals, shall not unnecessarily obstruct the use of the streets, shall back fill all openings in such manner as to prevent settling or depressions in surface, pavement or sidewalk of such excavations with same materials, restoring the condition as nearly as practical and if defects are caused shall repair the same.

111.04 CONSTRUCTION AND MAINTENANCE.

The Company shall, at its cost and expense, locate and relocate its existing facilities or equipment in, on, over or under any public street or alley in the City in such a manner as the City may at any time reasonably require for the purposes of facilitating the construction, reconstruction, maintenance or repair of the street or alley or any public improvement of, in or about any such street or alley or reasonably promoting the efficient operation of any such improvement. If the City orders or requests the Company to relocate its existing facilities or equipment for the primary benefit of a commercial or private project, or as the result of the initial request of a commercial or private developer or other non-public entity, the Company shall receive payment for the cost of such relocation as a precondition to relocating its existing facilities or equipment. The City shall consider reasonable alternatives in designing its public works projects so as not arbitrarily to cause the Company unreasonable additional expense in exercising its authority under this section. The City shall also provide a reasonable alternative location for the Company’s facilities. The City shall give the Company reasonable advance written notice to vacate a public right-of-way. Vacating a public right-of-way shall not deprive the Company of its right to operate and maintain existing facilities, until the reasonable cost of relocating the same are paid to the Company.

111.05 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.

111.06 SYSTEM REQUIREMENTS.

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 said City and its inhabitants thereof and shall be kept in a modern and up-to-date condition.

111.07 NONEXCLUSIVE.

The franchise granted by this chapter shall not be exclusive.

111.08 CONTINUOUS SERVICE.

Service to be rendered by the Company under this franchise shall be continuous unless prevented from doing so 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 is reasonably possible.

111.09 FRANCHISE FEE.
  1. In its monthly billing Company shall include a franchise fee of zero percent (0%) on the gross receipts from the sale of electricity for customers within the limits of the City of Roland, Story County, Iowa. The Company shall commence collecting the zero percent (0%) franchise fee on the date of January 1 or July 1, following six months from the date the acceptance of the ordinance codified by this chapter by the Company is filed with the City Clerk. The franchise fee may increase up to a maximum of 5% on or after January 1, 2010. The Grantor shall give the Company a minimum 6-month notice prior to the request to implement an increase in the franchise fee. Grantor 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.
  2. The franchise fee shall be applied to all customers’ bills in accordance with Code of Iowa Sections 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 to the City the franchise fee.
  3. The franchise fee shall include an additional charge equal to .06 percent (0.06%) on the gross receipts from the sale of electricity for customers within the limits of the City of Roland, Story County, Iowa. Said additional charge will cover the administrative and related expenses incurred by Company to accommodate City’s franchise fee and shall only apply when a franchise fee is being collected pursuant to this section.
  4. City agrees that Company’s obligations related to the franchise fee are limited to those obligations set forth in this section. City further agrees to bear all 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 the Company.
  5. Upon receipt of a final and unappealable order or approval authorizing annexation, or changes in the limits of said City, the City Clerk shall provide written notification to an officer of Company of such annexation or change in the limits of said City, and the Company shall apply the franchise fee to its customers who are affected by the annexation or change in the limits of the City, commencing six (6) months from receipt of the written notice.
  6. 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 customer.
  7. The Company shall remit collected franchise fees to the City on a quarterly basis, within thirty (30) days after last day of the last revenue month of the quarter.
  8. That said 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 said 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 the streets, avenues, alleys and public places in the said 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 tax, assessment, license or rental charge during the entire term of this franchise.
111.10 TERM OF FRANCHISE.

The term of the franchise granted by this chapter and the rights granted thereunder shall continue for the period of twenty-five (25) years, subject to a limited right of cancellation at the end of the fifteenth (15th) year anniversary date, from and after its acceptance by the said Company, as herein provided.

111.11 ENTIRE AGREEMENT.

This chapter sets forth and constitutes the entire agreement between the Company and the City of Roland with respect to the rights contained herein, and may not be superseded, modified or otherwise amended without the approval and acceptance of the Company. Upon acceptance by the Company, this chapter shall supersede, abrogate and repeal the prior electric system ordinance between the Company and the City of Roland as of the date the this ordinance codified by this chapter is accepted by the Company. Notwithstanding the foregoing, in no event shall the City of Roland enact any ordinance or place any limitations, either operationally or through the assessment of fees other than those approved and accepted by the Company within this chapter, that create additional burdens upon the Company, or which delay utility operations.