Subd. 1. Purpose. The Redwood Falls City Council has determined that it is in the best interest of the city to impose a franchise fee on those public utility companies that provide or engage in the retail sale of natural, manufactured or mixed gas or electric services in the city.
Subd. 2. Franchise Fee. Any public utility furnishing natural, manufactured or mixed gas or electric services utility services in the city shall pay to the city a franchise fee in an amount equal to 5% of the gross operating revenues received during the period of operations in the city.
Subd. 3. Payment. The franchise fee payments required by this section shall be payable monthly, and shall be based on the gross operating revenues of the public utility during the preceding calendar month. The payments shall be due and payable no later than 30 days after the last business day of the preceding month.
Subd. 4. Proof of Company Gross Revenues. Each public utility subject to the franchise fee shall make each payment when due and shall monthly furnish a complete and correct statement of gross revenues for the month. Each public utility subject to the franchise fee shall permit the city and its designated representative free access to the utility's records for the purpose of verifying the statements.
Subd. 5. Acceptance of Payment and Recomputation. No acceptance of any payment shall be construed as an accord by the city that the amount paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a release of any claim the city may have for further or additional sums payable or for the performance of any other obligation of the public utility.
Subd. 6. No Exemption from Other Fees, Taxes or Charges. Payment of the franchise fee under this chapter shall not exempt any public utility from the payment of any other license fee, tax or charge on the business, occupation, property or income of the public utility that may be imposed by the city, except as may otherwise be provided in the ordinance or ordinances imposing such other license fee, tax or charge.
Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this section and notwithstanding any contrary provisions in any franchise agreement, the effective date of the fee collected under Subd. 2. of this section shall be 8-1-2003.
Subd. 8. Enforcement. Any dispute, including enforcement of a default regarding this section will be resolved in accordance with the applicable franchise agreement.
(Ord. 85, Third Series, passed 6-17-2003)