A. Form: 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: 1) a percentage of gross revenues received by the company for its operations within the city, or 2) a flat fee per customer based on a metered service to retail customers within the city or on some other similar basis, or 3) a fee based on units of energy delivered to any class of retail customers within the corporate limits of the city. 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 combined the methods described in items 1) through 3) of this subsection in assessing the fee. The city shall seek to use a formula that provides a stable and predictable amount of fees, without placing the company at a competitive disadvantage. If the company claims that the city required fee formula is discriminatory or otherwise places the company at a competitive disadvantage, the company shall provide a formula that will produce a substantially similar fee amount to the city and reimburse the city's reasonable fees and costs in reviewing and implementing the formula. The city will attempt to accommodate the company but is under no franchise obligation to adopt the company proposed franchise fee formula and each review will not delay the implementation of the city imposed fee.
B. Separate Ordinance: The franchise fee shall be imposed by separate ordinance duly adopted by the city council, which ordinance shall not be adopted until at least one hundred twenty (120) days after written notice enclosing such proposed ordinance has been served upon the company. The fee shall become effective with the first billing cycle of the next month following the month the city adopts such ordinance.
C. Condition Of Fee: The separate ordinance imposing the fee shall not be effective against the company unless it lawfully imposes a fee of the same or substantially similar amount on the sale of electric energy within the city by any other electric energy supplier, provided that, as to such supplier, the city has the authority or contractual right to require a franchise fee or similar fee through a previously agreed upon franchise.
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 substantial 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. 301, 12-18-2012)