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06/02/2008 Council Packet
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06/02/2008 Council Packet
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City Council
Council Document Type
Council Packet
Meeting Date
06/02/2008
Council Meeting Type
Work Session Regular
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on units of ener •y delivered to any class of retail customers within the corporate limits of <br />the Ci . The formula for a franchise fee based on units of ener delivered ma <br />incorporate both commodity and demand units. The method of imposing the franchise fee, <br />the s ercenta ' e of revenue rate or the flat rate based on metered service ma differ for <br />each customer class or combine the methods described in (i) - (iii) above in assessing the <br />fee. The City shall seek to use a formula that provides a stable and predictable amount of <br />fees without a lacin ' the Com . an at a com i etitive disadvanta ' e. If the Com s an claims <br />that the City- required fee formula is discriminator or otherwise • laces the Com . an at a <br />competitive disadvanta ' e, the Company shall provide a formula that will produce a <br />substantially similar fee amount to the City and reimburse the City's reasonable fees and <br />costs in reviewing the formula. The Ci _ will attem s t to accommodate the Com a an but is <br />under no franchise obligation to adopt the Company- proposed franchise fee formula and <br />such review will not dela the im s lementation of the Ci -im • osed fee. <br />10.2. Separate Ordinance. The franchise fee shall be imposed by se . arate <br />ordinance duly adopted by the City Council, which ordinance shall not be adopted until at <br />least thirty (30) da s after written notice enclosin ' such fro s osed ordinance has been <br />served upon the Company. The fee shall become effective ten (10) days after written notice <br />enclosing such adopted ordinance has been served upon the Company b certified mail. <br />10.3. Condition of Fee. The separate ordinance imposing the fee shall not be <br />effective a. ainst the Com • any unless it lawfully imposes a fee of the same or substantially <br />similar amount on the sale of electric ener ' within the Ci b an other electric ener <br />supplier provided that as to such supplier, the Ci _ has the authori to re• uire a <br />franchise fee. Unless otherwise a ;reed by the Company, the City will not impose a <br />franchise fee that exceed five 5_. ercent of the ' ross revenues derived b the Com s an <br />from <br />0 <br />erations within the Ci <br />rovided <br />however that such limit will not a <br />1 <br />if <br />through deregulation or other cause allowing customers to • urchase electrici from <br />sources other than the Com a an the Com . an 's ' ross revenues from o a erations in the <br />City are reduced during the term of this franchise. <br />10.4. Collection of Fee. The franchise fee shall be payable not less than quarterly <br />durin`, complete billing months of the period for which payment is to be made. The <br />franchise fee formula may be changed from time to time; however, the change shall meet <br />the same notice requirements and the fee may not be changed more often than annually. <br />Such fee shall not exceed any amount that the Company may legally charge to its <br />customers prior to pa ment to the. City. Such fee is sub_ect to subse I uent reductions to <br />account for uncollectibles and customer refunds incurred b_ the Com • an . The Com . an <br />agrees to make available for inspection by the City at reasonable times all records <br />necessary to audit the Company's determination of the franchise fee pa ments. <br />SECTION 11. PROVISIONS OF ORDINANCE. <br />9.1 11.1. Severability. Every section, provision, or part of this Ordinance is declared <br />separate from every other section, provision, or part} and if any section, provision, or part shall <br />be held invalid, it shall not affect any other section, provision, or part.. -; provided, however, that <br />• <br />• <br />• <br />
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