(A) Fee schedule.
(1) In exchange for the franchise granted herein, the grantee shall collect from its customers located within the corporate limits of the city, and pay to the grantor an amount as set by city resolution annually, after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered.
(2) Plus percentage CPI adjustment which sums shall be increased each year on January 1 by the greater of:
(a) Three percent of the previous year’s annualized franchise fee; or
(b) By an amount equal to the increase in the Consumer Price Index (“CPI”).
(B) Fee increase determination; CPI.
(1) The CPI shall mean the Consumer Price Index - for all Urban Consumers, all Cities, all Items (1967 = 100), as published by the U.S. Department of Labor Statistics, or if such index shall be discontinued, the successor index, or if there be no successor index, such comparable index as mutually agreed upon by the parties.
(2) (a) To determine the annual franchise fee increase to be paid by the tenant under a CPI adjuster, the annualized franchise fee for the previous year shall be multiplied by a percentage figure, computed from a fraction, the numerator of which shall be the CPI for the third quarter of the preceding year and the denominator of which shall be the CPI for the corresponding quarter of one year earlier.
(b) Such fraction shall be converted to a percentage equivalent. The resulting percentage fixture shall be multiplied by the previous year’s rent.
(C) Notice to franchisee. The city shall communicate all franchise fee increases to the company in writing the preceding December 1 of each year.
(2006 Code, § 2.76) (Ord. 169, 3rd Series, passed 6-13-2006)