A. In consideration of and as compensation for the franchise hereby granted to grantee by grantor, the following fees are hereby imposed:
1. Grantee shall monthly pay grantor a sum equal to three percent (3%) of the gross receipts received by grantee, per billing period, from the distribution of natural gas to consumers within the corporate limits of the city, but excluding the calculated value of transport gas, contingent on the passage of an amendment to section 84 of the city charter to remove the provision thereof establishing a minimum franchise fee of four percent (4%). Absent approval of the charter amendment to section 84 of the city charter, the fee charged under this subsection shall be four percent (4%).
2. Except as set forth below, licensed transport gas consumers taking receipt of natural gas within the corporate limits of Ponca City shall monthly pay a sum equal to three percent (3%) of the then current calculated value of transport gas transported or distributed to the transport gas consumer during the corresponding billing period. Grantee agrees to act as agent for grantor to collect such sums for grantor. The sums in subsection A1 of this section and this subsection A2 shall be adjusted for uncollectible receivables and for uncollectible receivables which are later collected.
a. The city manager or his designee may waive the fee or any part thereof due from a transport gas consumer on the calculated value of transport gas, but such waiver shall only be granted if:
(1) The transport gas consumer could otherwise obtain its energy needs from another source that would not be subject to the fees imposed in this subsection A2 and sufficient evidence is produced by consumer so as to substantiate such alternative source; and
(2) Such alternative source, including all other fees, would be less than the cost of utilizing grantee to furnish and transport the gas or transport alone, as the case may be.
b. Federal and state agencies, including state school districts, that are transport gas consumers shall be exempt from the license requirements of subsection 5-9-3B of this chapter and from the fee imposed under this subsection A2 on the value of transport gas. Grantor and grantee shall collaborate as necessary to identify the exempt federal and state agencies.
B. Payments under this section shall be payable monthly on or before the twenty fifth day of the month following the month to which such accounting shall apply. Grantor shall notify grantee in writing of areas newly annexed into, or deannexed from, the corporate limits of the city of Ponca City, and grantee shall update its records for the purpose of franchise fee payments as soon as reasonably practicable after receiving such notice.
C. In the event the accounting rendered to grantor by grantee is found to be incorrect, then payment shall be made on the corrected amount, it being agreed that grantor may accept any amount offered by grantee, but the acceptance thereof by grantor shall not be deemed a settlement of such item if the amount is in dispute or later found to be incorrect. Grantee shall have no obligation, however, to make payment upon transport gas for which grantee has not been paid. Grantee shall provide notice to grantor of such delinquent accounts within ninety (90) days and grantor shall hold grantee harmless from the cost or liability for the collection of franchise fees on such delinquent accounts. Grantee agrees that such of its books, records, and documents as may be reasonably necessary for an effective compliance review of this chapter shall at all reasonable times be opened to the inspection and examination of the officers of grantor and its duly authorized agents, auditor, and employees for the purpose of verifying said accounting. Notwithstanding the obligation herein, grantee shall have the right to request the reasonable protection of proprietary information and to provide redacted documents or require grantor or its agents to enter into such agreements pertaining to confidentiality as may reasonably protect the proprietary information of grantee but which do not unreasonably frustrate the purposes of this subsection.
D. Grantor agrees that the franchise fee percentage rate set forth in subsections A1 and A2 of this section shall in no event exceed the percentage rate hereafter approved to calculate any fee paid to grantor by any other person or entity for use of the public ways if such fee or volumetric rate is based in any way on the amount of revenues or gross receipts from the transportation, distribution, or sale of natural gas or electric energy, excluding any municipally owned electric utility, by such other person or entity to ultimate consumers within the city. If at any time after the effective date hereof the fee or rate required to be paid by another is less than the percentage rate set forth in subsection A1 or A2 of this section, then the percentage rate set forth in subsection A1 or A2 of this section shall be reduced to equal such lesser percentage rate on the date such lesser percentage rate becomes effective and without any further action by the city or the qualified electors residing therein. (Ord. 6053, 5-9-2007)