(A) The city hereby establishes a franchise fee on every natural gas company and every other person, firm or corporation, their successors and assigns, owning, operating, controlling, leasing or managing a natural gas plant or system and/or generating, manufacturing, selling, distributing or transporting natural gas (hereinafter referred to, collectively, as “energy providers,” each, individually, an “energy provider”). Energy providers shall collect from their customers located within the corporate limits of the city as depicted on the map (but not from the city) and pay to the city an amount equal to 3% of gross receipts energy providers derive from the sale, distribution or transportation of natural gas delivered within the present or future limits of the city. Gross receipts as used herein are revenues received from the sale, distribution, or transportation of natural gas, after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered. The amount paid by energy providers shall be in lieu of, and energy providers shall be exempt from, all other fees, charges, taxes or assessments which the city may impose for the privilege of doing business within the city, including, without limitation, excise taxes, occupation taxes, licensing fees or right-of-way permit fees, and in the event the city imposes any such fee, charge, tax or assessment, the payment to be made by energy providers in accordance with this section shall be reduced in an amount equal to any such fee, charge, tax or assessment imposed upon the energy providers. Ad valorem property taxes imposed generally upon all real and personal property within the city shall not be deemed to affect energy providers’ obligations under this section.
(B) Energy providers shall report and pay any amount payable under this section on an annual basis. Such payment shall be made no more than 30 days following the close of the period for which payment is due. Initial and final payments shall be prorated for the portions of the periods at the beginning and end of any franchise granted by the city to an energy provider.
(C) Energy providers shall list the franchise fee collected from customers as a separate item on bills for utility service issued to their customers. If at any time the State Public Service Commission or other authority having proper jurisdiction prohibits such recovery, energy providers will no longer be obligated to collect and pay the franchise fee. In addition, energy providers may reduce the franchise fee payable for natural gas delivered to a specific customer when such reduction is required to attract or retain the business of that customer.
(D) Within ten days of the date of this section, the city shall provide the energy providers with a map of its corporate limits (the “map”). The map shall be of sufficient detail to assist energy providers in determining whether their customers reside within the city’s corporate limits. The map along with energy provider’s geographic information system (“GIS”) mapping information shall serve as the sole basis for determining energy provider’s obligation hereunder to collect and pay the franchise fee from customers; provided, however, that if the city’s corporate limits are changed by annexation of otherwise, it shall be the city’s sole responsibility to update the map so that such changes are included therein, and provide the updated map to the energy providers. An energy provider’s obligation to collect and pay the franchise fee from customers within an annexed area shall not commence until the later of 60 days after such energy provider’s receipt from the city of an updated map including such annexed area, or such time after such energy provider’s receipt from the city of an updated map including such annexed area as is reasonably necessary for such energy provider to identify the customers in the annexed area obligated to pay the franchise fee. In addition, energy providers shall not be liable for paying franchise fees from or to any customer incorrectly identified by the city or by the energy provider, as being subject to the franchise fee or being subject to a different level of franchise fees or being exempt from the imposition of franchise fees.
(E) The city shall have access to and the right to examine, during normal business hours, such of an energy provider’s books, receipts, files, records and documents as is reasonably necessary to verify the accuracy of payments due hereunder; provided, that the city shall not exercise such right more than twice per calendar year. If it is determined that a mistake was made in the payment of any franchise fee required hereunder, such mistake shall be corrected promptly upon discovery such that any under-payment by an energy provider shall be paid within 30 days of recalculation of the amount due, and any over-payment by an energy provider shall be deducted from the next payment of such franchise fee due by such energy provider to the municipality; provided, that neither party shall have the obligation to correct a mistake that is discovered more than one year after the occurrence thereof.
(Ord. 811, passed 5-14-2024)