HomeMy WebLinkAbout5149-02/18/2013Prepared by Carol Failor, Deputy City Clerk, City of Waterloo,
715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323.
ORDINANCE NO. 5149
AN ORDINANCE GRANTING TO MIDAMERICAN ENERGY
COMPANY, ITS SUCCESSORS AND ASSIGNS THE
RIGHT AND NON-EXCLUSIVE FRANCHISE TO
ACQUIRE, CONSTRUCT, ERECT, MAINTAIN AND
OPERATE IN THE CITY OF WATERLOO, IOWA, A
NATURAL GAS SYSTEM TO FURNISH AND SELL
NATURAL GAS TO THE CITY AND ITS INHABITANTS,
AND AUTHORIZING THE CITY TO COLLECT
FRANCHISE FEES FOR A PERIOD OF 18 YEARS.
WHEREAS, the City of Waterloo, Iowa, and MidAmerican Energy
Company entered into a franchise agreement Ordinance No. 5029,
adopted by the City Council on February 21, 2011, and
WHEREAS, the City of Waterloo and MidAmerican Energy
Company agree the franchise must be amended to clarify the
intent of the parties, and
WHEREAS, pursuant to the provisions of Section 364.2,
subsection (4)(f) of the Code of Iowa, the City has prepared a
Revenue Purpose Statement outlining the purposes for which the
City shall use the franchise fee revenues that will be received
if the proposed ordinance is adopted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Waterloo, Iowa, as follows:
1. That the Preamble of Ordinance No. 5029 is struck and
the following Preamble is substituted:
An ordinance granting to MidAmerican Energy Company,
its successors and assigns the right and non-exclusive
franchise to acquire, construct, erect, maintain and
operate in the City of Waterloo, Iowa, a natural gas
system to furnish and sell natural gas to the City and
its inhabitants, and authorizing the City to collect
franchise fees for a period of 18 years.
2. That Section 1 of Ordinance No. 5029 is struck and the
following Section 1 is substituted:
Section 1. There is hereby granted to MidAmerican
Energy Company, an Iowa corporation, hereinafter
called the "Company," and its successors and assigns,
the right and non-exclusive franchise to acquire,
construct, erect, maintain and operate in the City of
Waterloo, Iowa, hereinafter called the "City," a gas -
distribution system to furnish natural gas along,
under, over and upon the streets, avenues, alleys and
public places to serve customers within and without
the City, and to furnish and sell natural gas to the
City and its inhabitants. For the term of this
Ordinance No. 5149
Page 2
franchise, the Company is granted the right of eminent
domain, the exercise of which is subject to City
Council approval upon application by the Company.
This franchise shall be effective for an eighteen (18)
year period from and after the effective date of this
ordinance, however, that either the City or the
Company may, during the first ninety (90) days
following the eighth ( 8th) and twelfth (12th)
anniversaries of the effective date of the franchise,
provide written notice to the other party of its
desire to amend the franchise. The parties shall
negotiate these amendments in good faith for a period
of up to ninety (90) days following receipt of notice.
If, at the conclusion of the negotiation period, the
City determines in good faith that the franchise, if
continued without amendment, will have a material or
significant adverse impact on the City or the
Company's natural gas customers located within the
corporate limits of the City, the City may terminate
the franchise. The City shall have the burden to
objectively demonstrate the material or significant
adverse impact. Failure to amend the franchise at the
first option does not render invalid the City's second
option to amend the franchise.
3. That Section 13 of Ordinance No. 5029 is hereby struck
and the following Section 13 is substituted:
Section 13. There is hereby imposed upon, and shall
be collected from persons located within the corporate
limits of the City who are retail natural gas
customers of the Company, receiving service pursuant
to the tariff, a franchise fee of the gross receipts
from each revenue class as set forth below, minus
uncollectible accounts, derived by the Company from
the delivery and sale of natural gas to such
customers. The Company shall remit such franchise
fees to the City within sixty (60) days of collection.
City imposes the following franchise fee upon the
following revenue classes, effective July 1, 2013 and
July 1, 2014, for the length of the franchise
agreement:
7/1/13 7/1/14
•
Residential Customers
20 30
•
Non -Residential
Customers
20 3%
INTRODUCED:
February
18,
2013
PASSED 1St
CONSIDERATION:
February
18,
2013
PASSED 2nd
CONSIDERATION:
February
18,
2013
PASSED 3rd
CONSIDERATION:
February
18,
2013
Ordinance No. 5149
Page 3
PASSED AND ADOPTED by the City Council of the City of
Waterloo, Iowa, on the 18th day of February, 2013, and approved
by the Mayor on the 18th day of February, 2013.
ATTEST:
Suzy Sc ares, CMC
City Cl rk
nest G. Clark, Mayor
CERTIFICATE
I, Suzy Schares, City Clerk of the City of Waterloo, Iowa, do
hereby certify that the preceding is a true and complete copy of
Ordinance No. 5149, as passed and adopted by the City Council of
the City of Waterloo, Iowa, on the 18th day of February, 2013.
2013.
SEAL
Witness my hand and seal of office this 18th day of February,
Suzy ScIares, CMC
City Clerk
STATE OF IOWA, I
Black Hawk County,
ORDINANCE NO. 5149
AN ORDINANCE GRANTING TO MI-
DAMERICAN ENERGY COMPANY,
ITS SUCCESSORS AND ASSIGNS
THE RIGHT AND NON-EXCLUSIVE
FRANCHISE TO ACQUIRE, CON-
STRUCT, ERSGT; MAINTAIN AND OP-
ERATE IN THE CITY OF WATERLOO,
IOWA, A NATURAL GAS SYSTEM TO
FURNISH AND SELL NATURAL GAS,
TO THE CITY AND ITS INHABITANTS,
AND AUTHORIZING THE CITY TO
COLLECT FRANCHISE FEES FOR A
PERIOD OF 18 YEARS.
WHEREAS, the City of Waterloo, Iowa,
and MidAmerican Energy Companyen-
tered into a franchise agreement 0rdl-
nanpe No. 5029, adopted by'the City
Council on February 21, 2011, and
'WHEREAS, the City of Waterloo and Mi-
dAmerican Energy Company agree the
franchise must be amended to clarify the
intent of the parties, and
WHEREAS, pursuant to the provisions
of Section 364.2, subsection (4)(fl of the
Code of Iowa, the Cityhasprepared a
Revenue Purpose Stat@@menti outlining
the purposes for which the City shall use
the franchise fee revenues that will be
received if the proposed ordinance is
adopted
NOW, THEREFORE, 89 IT RESOLVED
by the City Council of the City of Water-
loo, Iowa, as follows:
17hat the Preamble of. Ordinance No.
5029 is struck and the following Pream-
ble is substituted:
An ordinance granting to MidAmerican
Energy Company, its successors and
assigns the right and non-exclusive fran-
chise to acquire, construct, erect, main-
tain and operate in the City of Waterloo,
Iowa, a natural gas system to furnish and
sell natural gas to the City and its inhab-
itants, and authorizing the City to collect
franchise fees for a period of 18 years.
2. That Section I of Ordinance No. 5029
is struck and the following Section 1 is
substituted:
Section 1. There is hereby granted to
MidAmerican Energy Company, an Iowa
corporation, hereinafter called the "Com-
pany," and its successors and assigns,
the right and non-exclusive franchise to
acquire, construct, erect, maintain and
operate in the City of Waterloo, Iowa,
hereinafter called the "City," a gas -
distribution system to furnish natural gas
along, under, over and upon the streets,
avenues, alleys and public places to
serve customers within and without the
City, and to furnish and sell natural gas
to the City and its inhabitants. For the.
term of this franchise; the Company is
granted the right of eminent domain, the
exercise of which is subject to City Coun-
cil approval upon application by the
Company. This franchise shall be effec-
tive for an eighteen (18) year period from
and after the effective date of this ordi-
nance, however, that either the City or
the Company may, during the first ninety
(90) days following the eighth (8th) and"
twelfth (12th) anniversaries of the effec-
tive date of the franchise, provide written
notice to the other party of its desire to
amend the franchise. The parties shall
negotiate these amendments in good
faith for a period of up to ninety (90) days
following receipt of notice. If, at the con-
clusion of the negotiation period, the City
determines in good faith that the fran-
chise; if continued without amendment,
will have a material or significant ad-
verse impact on the City or the Compa-
ny's natural gas customers located with-
in the corporate limits of the City, the City
may terminate the franchise. The City
shall have the burden to objectively
demonstrate the material or significant
adverse impact. Failure to amend the
franchise at the first option does not ren-
der invalid the City's second option to
amend the franchise.
3.ThatSection 13 of Ordinance No. 5029
is hereby struck and the following Sec-
tion 13 is substituted:
Section 13 Th—A ie herahv imnncnd
I do solemnly swear that the annexed copy of legal
City of Waterloo
SS Ordinance No. 5149
Notice was published in the Waterloo -Cedar Falls
Courier, a daily newspaper printed in Waterloo, Black
Hawk County, Iowa, once commencing on the 7th
day of March, 2013 in the name of said newspaper,
and that the annexed rate of advertised is the regular
legal rate of said newspaper, and that the following is
a correct bill for publishing said notice.
Printer's Bill $45.95
Subscribed and sworn to
Day of
A
Received of
the sum of
Signed
me this I "1
Notary
Dollars.
In full for publication of the above notice.