§ 18. Franchise Fee.

In its monthly billing, Company shall include a franchise fee of three percent (3%) on the gross revenues from the sale of electricity for customers within the limits of the City of Cedar Rapids, Linn County, Iowa. The amount of franchise fee shall be shown separately on the utility bill to each customer. The franchise fee may increase up to a maximum of five percent (5%), as allowed by law. The City shall give the Company a minimum six-month notice prior to the request to implement an increase in the franchise fee. The City shall be solely responsible for the proper use of any amounts collected as franchise fees, and should only use such fees as collected for a purpose as allowed 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 Ordinance term. Notwithstanding the foregoing, the collection of any franchise fee shall be in accordance with applicable law, including but not limited to any limitations upon the question of such franchise fee.

(007-16)

Note— Section 18 shall be in full force and effect July 31, 2016.