1. City Right to Impose Fee. In consideration of the right to construct and maintain such electric facilities and equipment along, upon, across, and under the streets, highways, avenues, alleys, bridges, and public places of the City, the City reserves the right to impose upon the Company and, by its acceptance of this franchise, it agrees that there shall be collected from the Company’s customers within the corporate limits of the City and remitted by the Company to the City, a franchise fee in an amount equal to a percentage of the gross receipts derived by the Company from the transmission or distribution of electric energy to customers within the corporate limits of the City (excluding, however, the sale of electric energy to the City), or assessed or charged in any other manner the City deems appropriate and is consistent with applicable laws as may be changed from time to time, as determined by resolution upon a majority vote of the Council at a duly scheduled Council meeting after 14 days’ advance public notice. The City shall give the Company 90 days’ written notice of the effective date of any franchise fee imposed by the City on the customers of the Company located within the corporate limits of the City.
2. Quarterly Payments. In the event a franchise fee is imposed by the City, the Company shall remit the sum collected from customers to the Finance Director quarterly on May 1, August 1, November 1, and February 1 of each year for the three-month periods ending respectively March 31, June 30, September 30, and December 31.