Urbandale council approves first steps on 20‑year MidAmerican franchise agreements, including 1% fee
January 21, 2026 | Urbandale, Polk County, Iowa
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The Urbandale City Council advanced franchise agreements with MidAmerican Energy Company for electric and natural‑gas service, approving council letters to move both items forward after public hearings.
John Coneyer, the city’s Director of Administrative Services and Risk Management, told the council the draft franchise agreements modernize 25‑year‑old contracts, authorize use of city rights‑of‑way, update responsibilities for construction and relocations, and add a 1% franchise fee (in lieu of the local option sales tax). Staff estimated combined franchise‑fee revenue of roughly $500,000 in the first year. The proposed agreements are nonexclusive, run for 20 years and include ‘‘openers’’ at years 10 and 15 so the city or MidAmerican can reopen terms mid‑term.
Councilmembers asked whether adoption of a franchise fee required a separate revenue purpose statement; staff confirmed a separate public hearing is required and said the recommended revenue purpose language will be drafted broadly to allow lawful uses, with the intent to place the revenue in the general fund to help operations this fiscal year and next. Coneyer also said the city will coordinate customer notification of the change and noted some nonprofits who previously were not subject to the local option sales tax could see a new charge under the franchise fee.
No members of the public spoke during the electric or gas hearings. Council moved to close both hearings and approved council letters to advance the franchise agreements (council letters 8410 and 8412). The items still require a second ordinance reading and publication before the fee can be implemented; staff anticipated publication around Feb. 20 for the next procedural steps.
The council’s action updates long‑expired franchise language, sets expectations for relocation and vegetation management, and starts the procedural sequence for the city to collect a locally controlled 1% franchise fee if the ordinances are ultimately adopted.
John Coneyer, the city’s Director of Administrative Services and Risk Management, told the council the draft franchise agreements modernize 25‑year‑old contracts, authorize use of city rights‑of‑way, update responsibilities for construction and relocations, and add a 1% franchise fee (in lieu of the local option sales tax). Staff estimated combined franchise‑fee revenue of roughly $500,000 in the first year. The proposed agreements are nonexclusive, run for 20 years and include ‘‘openers’’ at years 10 and 15 so the city or MidAmerican can reopen terms mid‑term.
Councilmembers asked whether adoption of a franchise fee required a separate revenue purpose statement; staff confirmed a separate public hearing is required and said the recommended revenue purpose language will be drafted broadly to allow lawful uses, with the intent to place the revenue in the general fund to help operations this fiscal year and next. Coneyer also said the city will coordinate customer notification of the change and noted some nonprofits who previously were not subject to the local option sales tax could see a new charge under the franchise fee.
No members of the public spoke during the electric or gas hearings. Council moved to close both hearings and approved council letters to advance the franchise agreements (council letters 8410 and 8412). The items still require a second ordinance reading and publication before the fee can be implemented; staff anticipated publication around Feb. 20 for the next procedural steps.
The council’s action updates long‑expired franchise language, sets expectations for relocation and vegetation management, and starts the procedural sequence for the city to collect a locally controlled 1% franchise fee if the ordinances are ultimately adopted.
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