(A) The grantee of any franchise awarded to a public utility or mutual water company, except a franchise for a spur, drill or team track, shall during the life of the franchise pay to the city, in lawful money of the United States, two percent of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise subject to the following conditions:
(1) No percentage shall be paid for the first five years succeeding the effective date of the franchise but thereafter such percentage shall be payable annually.
(2) If the franchise is a renewal of a right already in existence, the payment of such percentage of gross receipts shall accrue from the effective date of the ordinance granting the franchise.
(3) In case the franchise is granted to a street railway company or trackless trolley and provides for an extension of an existing system, then the gross receipts shall be estimated to be one half of the proportion of the total gross receipts of such system, which the mileage of such extension bears to the total mileage of the whole system, and such estimate shall be conclusive as to the amount of the gross receipts of such extension.
(B) As used in this section, the phrase
TWO PERCENT OF THE GROSS ANNUAL RECEIPTS OF THE GRANTEE ARISING FROM THE USE, OPERATION OR POSSESSION OF THE FRANCHISE shall be construed as that similar phrase found in Cal. Pub. Util. Code § 6006 and in former § 3 of Chapter 578, page 777, Statutes of 1905, popularly known as the Broughton Act.
('64 Code, § 10-11) (Ord. 168, passed 2-9-61)