As compensation for the right, privilege and franchise hereby granted, grantee agrees to pay to the grantor on or before January 30, April 30, July 30 and October 30, an amount equivalent to one percent (1%) of grantee's "gross revenues" for the preceding calendar quarter. For purposes of this section, "gross revenues" shall mean the amount of money billed by the grantee for the natural gas it sells within the corporate limits of the grantor to customers, less uncollectibles. The grantor shall provide appropriate information to the grantee to allow the grantee to identify which of its customers are located within the corporate limits of the grantor for purposes of paying franchise fees. Grantee shall not be responsible for any failure to pay franchise fees, which results from deficiencies in such information provided by the grantor. In the event the grantor annexes a new area into its corporate limits, the terms of this section regarding franchise fees shall not apply to the annexed area until sixty (60) days after the grantor has supplied the grantee with appropriate information for the identification of the grantee's customers within the annexed area.
The grantee's franchise fee payment obligations hereunder shall commence with the start of the grantee's first full billing cycle following the effective date hereof; provided, that the grantee must first receive approval from the Idaho public utilities commission for the collection of the franchise fee in the rates charged by grantee.
The city shall have the right during the term of this franchise to adjust franchise fees annually, according to applicable laws. (Ord. 507A, 7-24-2007)