ORDINANCE NO. 3171 AN ORDINANCE IMPOSING A FRANCHISE FEE IMPOSING A FRANCHISE FEE ON MIDAMERICAN ENERGY COMPANY IN THE AMOUNT OF 2% OF THE GROSS RECEIPTS DERIVED BY THE COMPANY FROM THE TRANSMISSION OR DISTRIBUTION OF ELECTRICITY AND NATURAL GAS TO CUSTOM

ORDINANCE NO. 3171 AN ORDINANCE IMPOSING A FRANCHISE FEE IMPOSING A FRANCHISE FEE ON MIDAMERICAN ENERGY COMPANY IN THE AMOUNT OF 2% OF THE GROSS RECEIPTS DERIVED BY THE COMPANY FROM THE TRANSMISSION OR DISTRIBUTION OF ELECTRICITY AND NATURAL GAS TO CUSTOMERS WITHIN THE CORPORATE LIMITS OF THE CITY PURSUANT TO IOWA CODE SECTION 364.2 (2025). WHEREAS, the City of Waukee, Iowa has adopted franchise ordinances with MidAmerican Energy Company, for the purpose of granting the right and franchise to operate gas and electric facilities within the City; AND WHEREAS, pursuant to the gas and electric franchises granted to MidAmerican Energy Company, and Iowa Code 364.2 (2025), 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 § 364.2(4)(1) and it has been published in the manner provided by Iowa Code § 362.3; AND WHEREAS, the City Council of the City of Waukee has published notice and held a public hearing regarding the proposed ordinance imposing franchise fees in an amount equal to a 2% of the gross receipts derived by the Company from the transmission or distribution of natural gas and electricity to customers within the corporate limits of the City as required by Iowa Code section 364.2 (2025). BE IT ORDAINED by the City Council of the City of Waukee, Iowa: Section 1. Franchise Fee. A franchise fee is hereby imposed in an amount equal to 2% of the gross revenues, minus uncollectible accounts, derived by MidAmerican Energy Company ("Company") from the transmission or distribution of electricity and natural gas to customers within the corporate limits of the City (excluding, however, the sale of electricity and natural gas to the City). A. The franchise fee shall be remitted by the Company 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. B. The Company will use its best efforts to commence 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. C. The Company shall collect franchise fees from customers in newly annexed areas after such ordinances have been provided to the Company by certified mail from the City. The Company 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. D. Company 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. E. With respect to the distribution or transportation by the Company of natural gas sold to the customer by a third-party supplier of the commodity, the percentage of gross revenues shall be applied to the customer's full cost of gas delivered within the City, including all costs of acquisition, ownership, and transportation whereof, wherever incurred. In determining the amount of the fee, the Company may presume that the customer's commodity cost of gas is the same as if the gas were sold by the Company, unless a different cost is provided by Customer to Company. 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 5th day of January, 2026, and approved this 5th day of January, 2026. Courtney Clarke, Mayor Attest: Rebecca D. Schuett, City Clerk January 15 2026 LIOW0435416