(A) Form.
(1) During the term of the franchise hereby granted, and in addition to permit fees being imposed or that the city has a right to impose, the city may charge the company a franchise fee. The fee may be:
(a) A percentage of gross revenues received by the company for its operations within the city; or
(b) A flat fee per customer based on metered service to retail customers within the city, or on some other similar basis; or
(c) A fee based on units of energy delivered to any class of retail customers within the corporate limits of the city.
(2) The method of imposing the franchise fee, the percentage of revenue rate, or the flat rate based on metered service may differ for each customer class or combine the methods described in divisions (1) through (3) above in assessing the fee. The city shall use a formula that provides a stable and predictable amount of fees.
(B) Separate ordinance. The franchise fee shall be imposed by separate ordinance duly passed and adopted by the City Council, which subchapter shall not be adopted until at least 30 days after written notice enclosing the proposed ordinance has been served upon the company. The effective date of the franchise fee shall be specified in the proposed ordinance.
(C) Conditions of fee. The city may impose a franchise fee on the company to recover the cost of specific public projects which it orders from time to time that involve electric utility work of the company. Any franchise fee imposed for a specific project after the effective date of this subchapter shall expire upon the date that the cost of the company's electric utility work associated with the project has been paid for. A franchise fee for any other purpose shall not be imposed on the company, unless the same franchise fee is also imposed on all other energy suppliers providing service within the city. This § 119.08(C) shall not apply to any franchise fee existing or hereinafter imposed in connection with the Johnny Cake Ridge Road and 140th Street substation and related facilities.
(D) Collection of fee. The franchise fee shall be payable not less than quarterly during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time, however, the change shall meet the same notice requirements and the fee may not be changed more often than annually. Such fee shall not exceed any amount that the company may legally charge to its customers prior to payment to the city. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the company. The company agrees to make available for inspection by the city at reasonable times all records necessary to audit the company's determination of the franchise fee payments.
(E) Continuation of franchise fee. If this franchise expires and the city and the company are unable to agree upon terms of a new franchise, the franchise fee, if any being imposed by the city at the time this franchise expires, will remain in effect until a new franchise is agreed upon.
(Ord. 753, passed 6-24-04)