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A. Separate Ordinance: The city hereby reserves the right to implement, by passage of a separate ordinance, a franchise fee to be collected and remitted by the company to the city. Said franchise fee will be in accordance with state law and regulations. In the event such a franchise fee is implemented, 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. The separate ordinance shall not be adopted until at least thirty (30) days after written notice enclosing such proposed ordinance has been served upon the company. The fee shall become effective ten (10) days after written notice enclosing such adopted ordinance has been served upon the company by certified mail.
B. 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 gas energy within the city by any other gas 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.
C. 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.
D. Continuation Of Franchise Fee: The franchise fee, if any, being imposed by the city at the time the most recent of any previous franchise granted to the company by the city expired remains in effect until it is changed in the manner provided for implementation of such fee. If this franchise expires and 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. 922, 11-5-2012)