GRIMES ORDINANCE NO. 812

GRIMES ORDINANCE NO. 812 AN ORDINANCE IMPOSING FRANCHISE FEES ON BLACK HILLS/IOWA GAS UTILITY COMPANY, LLC D/B/A BLACK HILLS ENERGY AND MIDAMERICAN ENERGY COMPANY IN THE AMOUNT OF 3% OF THE GROSS REVENUES DERIVED BY THE COMPANIES FROM THE SALE AND DISTRIBUTION OF ELECTRICITY AND NATURAL GAS TO CUSTOMERS WITHIN THE CORPORATE LIMITS OF THE CITY PURSUANT TO IOWA CODE SECTIONS 364.2 AND 384.3A (2026). WHEREAS, the City of Grimes, Iowa ("City"), has adopted franchise ordinances with Black Hills/Iowa Gas Utility Company, LLC d/b/a Black Hills Energy ("Black Hills Energy") and MidAmerican Energy Company, for the purpose of granting the right and franchise to operate gas and/or electric facilities within the City; AND WHEREAS, pursuant to the natural gas franchise granted to Black Hills Energy, and Iowa Code Sections 364.2 and 384.3A, the City has the authority to impose franchise fees; AND WHEREAS, pursuant to the natural gas and electric franchises granted to MidAmerican Energy Company, and Iowa Code Sections 364.2 and 384.3A, the City has the authority to impose franchise fees; AND WHEREAS, the City Council has adopted a "Revenue Purpose Statement" and as required by Iowa Code Section 364.2(4)(1) and it has been published in the manner provided by Iowa Code Section 362.3; AND WHEREAS, the City Council of the City of Grimes has published notice and held a public hearing regarding the proposed ordinance imposing franchise fees in an amount equal to a 3% of the gross revenues derived by the Companies from the sale and distribution of natural gas and electricity to customers within the corporate limits of the City as required by Iowa Code Section 364.2. BE IT ORDAINED by the City Council of the City of Grimes, Iowa, that the Grimes Code of Ordinances be amended by adding new Title Sections 10-1-10 and 10-2-3 as follows: TITLE 10-1-10 3% FRANCHISE FEE: A franchise fee is hereby imposed in an amount equal to 3% of the gross revenues, minus uncollectible accounts, derived by Black Hills Energy and MidAmerican Energy Company ("Companies") from sales of natural gas and distribution service to customers within the corporate limits of the City (excluding, however, the sale of natural gas to the City). The Companies will use their best efforts to commence the initial collection of franchise fees on or before the first Company billing cycle of the first calendar month following ninety (90) days of receipt of Information required of the City to implement the franchise fee. The Companies shall not, under any circumstances be required to return or refund any franchise fees that have been collected from customers and remitted to the City.Collected franchise fees shall be remitted by the Companies to the City on or before the last business day of the month following the close of the calendar quarter in which the franchise fee is charged. The Companies shall collect franchise fees from customers in newly annexed areas after the annexation information has been provided to the Companies by certified mail from the City. The Companies will use their best efforts to commence collecting franchise fees in the annexed areas no later than sixty (60) days after receiving annexation ordinances from the City. TITLE 10-2-3 3% FRANCHISE FEE: 1. A franchise fee is hereby imposed in an amount equal to 3% of the gross revenues, minus uncollectible accounts, derived by MidAmerican Energy Company ("MidAmerican") from the sales of electricity and distribution service to customers within the corporate limits of the City (excluding, however, the sale of electricity to the City). 2. MidAmerican will use their best efforts to commence the initial collection of franchise fees on or before the first Company billing cycle of the first calendar month following ninety (90) days of receipt of Information required of the City to implement the franchise fee. 3. Collected franchise fees shall be remitted by MidAmerican to the City on or before the last business day of the month following the close of the calendar quarter in which the franchise fee is charged. 4. MidAmerican shall not, under any circumstances be required to return or refund any franchise fees that have been collected from customers and remitted to the City. 5. MidAmerican shall collect franchise fees from customers in newly annexed areas after the annexation information has been provided to MidAmerican by certified mail from the City. MidAmerican will use its best efforts to commence collecting franchise fees in the annexed areas no later than sixty (60) days after receiving annexation ordinances from the City. Section 2. Repealer. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 3. Severability Clause. If any section, provision or part of this ordinance shall be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provisions or part thereof not adjudged invalid or unconstitutional. Section 4. Effective Date. This ordinance shall be in effect from and after its final passage, approval and publication as provided by law. Passed by the Council the 26th day of May, 2026, and approved this 26th day of May, 2026. Attest: Mayor David Gisch City Clerk Rachel Greving May 28 2026 LIOW0525834