(A) The Mayor and City Council shall have the power to grant nonexclusive franchises for gas distribution within the city. Such nonexclusive franchise agreement shall have a term not exceeding 25 years. There hereby is established a franchise fee on every natural gas company and every other person, firm or corporation, their successors and assigns, owning, operating, controlling, leasing or managing a natural gas plant or system and/or generating, manufacturing, selling, distributing or transporting natural gas (hereinafter referred to, collectively, as “franchisees,” each, individually, a “franchisee”). Franchisees shall collect from their customers located within the corporate limits of the city and pay to the city an amount based on the following initial fee schedule, after adjustment for net write-off of uncollectible accounts and corrections of bills theretofore rendered:
Customer Class | Volumetric Fee |
Commercial | $0.03214/ccf month/customer |
Industrial | $0.00328/ccf month/customer |
Residential | $0.03177/ccf month/customer |
(B) The franchise fee shall be subject to change by resolution of the City Council from time to time.
(C) Franchisees shall report and pay any amount payable under this section on a monthly basis. Such payments shall be made no more than 30 days following the close of the period for which the payment is due. Initial and final payments shall be prorated for the portions of the periods at the beginning and end of any franchise granted by the city to a franchisee.
(D) If, at any time, the state’s Public Service Commission or any other authority having proper jurisdiction prohibits such recovery, franchisees will no longer be obligated to collect the franchise fee.
(E) The city shall provide copies of annexation ordinances to franchisees on a timely basis to ensure appropriate franchise fee collection from customers within the corporate limits of the city. A franchisee’s obligation to collect and pay the franchise fee from customers from an annexed area shall not commence until 60 days after such franchisee’s receipt of the annexation ordinance pertaining to such area.
(F) The city shall have access to and the right to examine during normal business hours, such franchisee’s books, receipts, files, records and documents as is necessary to verify the accuracy of payments due hereunder. If it is determined that a mistake was made in the payment of any franchise fee required hereunder, such mistake shall be corrected promptly upon discovery, such that any underpayment made by a franchisee shall be paid within 30 days of recalculation of the amount due, and overpayment for a franchisee shall be deducted from the next payment of such franchise fee due by such franchisee to the city.
(Prior Code, § 110.055) (Ord. 2370, passed 8-7-1974; Ord. 07-03, passed 1-15-2007; Ord. 07-26, passed 12-3-2007)