Opinion ID: 2233359
Heading Depth: 1
Heading Rank: 6

Heading: Disposition and Directions.

Text: Because under this record a genuine issue of material fact exists as to whether all or part of the franchise fees charged by the City on gas and electric services are reasonably related to the City's administrative expenses in exercising its police power, we reverse the decision of the district court and remand the case to determine the class certification question and for a trial on the merits. At trial, the district court shall determine what, if any, part of the franchise fees are related to the City's administrative expenses in exercising its police power, including the costs associated with any incidental consequences of the franchised services. If after trial the district court determines that none of the franchise fees are reasonably related to the City's administrative expenses, the court shall issue the appropriate order disallowing the franchise fees as contained in the ordinances. However, if the district court determines that all or part of the franchise fees are reasonably related to the City's administrative expenses, the court shall enforce the ordinances up to an amount equal to the fees reasonably related to the City's administrative expenses in exercising its police power. Cf. State ex rel. Turner v. Younker Bros., Inc., 210 N.W.2d 550, 565 (Iowa 1973) (holding a department store was not allowed to collect finance charges on its retail installment contracts and revolving charge accounts that were in excess of the interest rate allowed by statute; however, the store was allowed to assess finance charges in the amount allowed by statute); Ehlers v. Iowa Warehouse Co., 188 N.W.2d 368, 373 (Iowa 1971) (holding an employer may partially enforce a noncompete agreement to the extent it is reasonable under the circumstances). REVERSED AND CASE REMANDED WITH DIRECTIONS.