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A. Fee: In lieu of any permit or other fees being imposed on company, company shall pay an annual franchise fee, of five percent (5%) of company's gross revenues. The franchise fee will not become effective until the beginning of a company billing month at least ninety (90) days after this chapter has been published and a separate franchise agreement has been fully executed, whichever occurs later. Subsection 1-13-4E of this chapter will constitute the sole remedy for solving disputes between company and the city in regard to the interpretation of, or enforcement of, the franchise fee. No action by the city to implement a revised franchise fee will commence until the franchise agreement and this chapter are in effect. In the event a future revision of the fee imposes fees based on a class of user and imposes a lesser franchise fee on the residential class of customers, such fee will 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.
B. Collection Of The Fee: The franchise fee will be payable quarterly and will be based on the amount collected by company during the complete billing month during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee in all customer billings for gas service. The payment will 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 must meet the same notice requirements and not occur more often than annually and no change will require a collection from any customer for gas service in excess of the amounts specifically permitted by this section. The time and manner of collecting the franchise fee is subject to the approval of the commission. No franchise fee will be payable by company if company is legally unable to first collect an amount equal to the franchise fee from its customers for gas 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 an identifiable customer or customers or any other information regarding identified customers. The city and company shall enter into an agreement prior to company commencing operation of the gas facilities.
C. Equivalent Fee Requirement: The franchise fee imposed will not be effective against company unless the city lawfully imposes and the city quarterly or more often collects a 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 impose a tax. The "same or greater equivalent amount" will 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 will be applicable to energy sales for any energy use related to heating, cooling, or lighting, or to run machinery and appliances, but will not apply to energy sales for the purpose of providing fuel to vehicles. If company specifically consents in writing to a franchise collecting or failing to collect a fee from another energy supplier in contravention of this section, the foregoing conditions will be waived to the extent of such written consent. (Ord. 2015-03, 2-9-2015)