§ 4. Payments To City  


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  • 4.1. Franchise Fee. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on the Company in relation to its operations as a public utility, the Company will pay monthly on or before the 25th of each month, a franchise fee to the City on the Company's gross revenues from gas sales and transportation operations in the City for each preceding calendar month.

    The term "gross revenues" means all sums received by the Company for its sale or transportation of natural gas to customers within the City. For natural gas transported but not sold by the Company, "gross revenues" shall include only the revenues for the Company's transportation of natural gas and not the revenues for a third party's sale of natural gas to customers within the City.

    The franchise fee will be assessed as follows:

    1. For residential buildings with four (4) units or less, the Company will impose a fee as follows:

    4% of gross revenue for gas sales and transportation for years 1—9; and

    4.25% of gross revenues for gas sales and transportation for years 10—16; and

    4.5% of gross revenues for gas sales and transportation for years 17—23.

    2. For small volume commercial/industrial/firm or interruptible customers (daily usage of less than 2,000 ccf, including residential buildings with greater than four (4) units, and large volume firm customers (daily usage of 2,000 ccf or more), the Company will impose a fee as follows:

    5% for the term of this franchise.

    3. For large volume interruptible customers (daily usage of 2,000 ccf or more), the Company will impose a fee as follows:

    3% for the term of this franchise; except, however, at such time as the City imposes a franchise fee or tax on all alternate, competing fuels, including but not limited to fuel oil, propane and coal, then the City may, with notice to Company, and without the Company's consent raise the franchise fee payable to the City to the same level as the franchise fee or tax imposed on alternate competing fuels, but in no event more than 5%.