§ 20.66 FRANCHISE FEE.

   (a)   Fee schedule . During the term of the franchise hereby granted, the city may impose on Company a franchise fee by collecting the amounts indicated in a fee schedule set forth in a separate ordinance from each customer in the designated company customer class . The parties have agreed that the initial franchise fee collected by the Company and paid to the city in accordance with this § 20.66 shall be the following amounts.

 

Class	Fee Per Premise Per Month
	prior to 1-2022
Residential	$ 3.75
Sm C & I - Non-Dem	$ 7.50
Sm C & I - Demand	$ 40.00
Large C & I	$ 115.00

 

   (b)   Separate ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 90 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. § 20.59(e) shall constitute the sole remedy for solving disputes between Company and the city in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the city to implement a separate ordinance will commence until this Article III is effective. The separate ordinance may be modified not more than annually to increase or decrease the fee. If the city increases the fee set forth in subsection (a) above or subsequent schedule adopted pursuant to this § 20.66, all notice requirements shall be in effect. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in subsection (a) above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class.

   (c)   Terms defined. For the purpose of this § 20.66, the following definitions apply:

      CUSTOMER CLASS. Shall refer to the classes listed on the fee schedule and as defined or determined in Company’s electric tariffs on file with the Commission.

      FEE SCHEDULE. Refers to the schedule in subsection (a) above setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The fee schedule in the separate ordinance may include new customer class added by Company to its electric tariffs after the effective date of this franchise agreement.

   (d)   Collection of fee. The franchise fee shall be payable to the city quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this § 20.66. The customer notice , billing description and manner of collecting the franchise fee is subject to the approval of the Commission . No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company’s applicable rates for electric service. Company may pay the city the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the city at reasonable times provided that the city and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers.

   (e)   Equivalent fee requirement. The separate ordinance imposing the fee shall not be effective against Company unless the city lawfully imposes a similarly collected fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the city by any other energy supplier, provided that, as to such a supplier, the city has the authority to require a franchise fee or to impose a tax. The “same or greater equivalent amount” shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this subsection (e), the foregoing conditions will be waived to the extent of such written consent.

(Ord. 88-9, passed 2-22-1988; Ord. 2008-15, passed 5-5-2008; Ord. 2015-42, passed 12-21-2015)