§ 4. COMPENSATION TO THE CITY.

 

(a)

In consideration of, and as compensation for, the franchise and privilege hereby granted, Company shall make an accounting to the City once each month of all its Gross Receipts during the preceding month. Such accounting shall be submitted by the fifteenth (15 ^th ) day of the month following the calendar month that is the subject of the accounting, and shall be accompanied by a report of the Company's Gross Receipts for the preceding month upon which fees are calculated.

(b)

The Company shall pay to the City, at the time of making such report, an amount equal to five percent (5%) of the Gross Receipts of the Company during such preceding month. Such payments shall be made to the City under such additional procedures as are mutually agreed to by the Company and the City.

(c)

In the event the accounting rendered to the City by the Company is found to be incorrect, then an adjustment shall be promptly made on the corrected amount. The City may accept any amount offered by the Company, but the acceptance thereof by the City shall not be deemed a settlement of such item if the amount is in dispute or later found to be incorrect. Such of the Company's books, records, documents, contracts and agreements as may be reasonably necessary for an audit of the Company's performance under this ordinance shall at all reasonable times and upon reasonable request be opened to the inspection and examination by the officers of the City and its duly authorized agents, auditors, and employees for the purpose of verifying said accounting. For purposes of this provision, the Company shall maintain appropriate records for three past years plus the current year.

(d)

For each and every month, or any part thereof, that the compensation provided for by this franchise remains unpaid after the same becomes due and payable to the City, there shall be added to such payment, as a late charge, a sum equivalent to the statutory rate for interest on the unpaid amount. Such late charge shall be applicable to sums that are delinquent as well as any sums due the City as the result of an audit or review of the Company's records.

(e)

Except as provided herein, the payments and compensation herein provided shall be in lieu of all other licenses, taxes, charges, and fees imposed by the City. Company shall continue to be responsible for and subject to the following licenses, taxes, charges and fees:

(i)

the usual general property taxes and special ad valorem property taxes;

(ii)

sales and excise taxes;

(iii)

any permit fees and charges for pavement cuts or other permit fees and charges based on restoring premises to their previous condition; and

(iv)

charges made for privileges which are not in any manner connected with the provision of Electric Utility Service, as such.

(f)

In the event that either state or federal governmental entities authorize or require, or Company on its own initiative engages in: (1) Retail Wheeling or customer choice of electric supplier; or (2) the unbundling and separate pricing of the generation, transmission or distribution of Electric Utility Service(s), then the revenues obtained by Company from these activities from service provided within the corporate limits of the City shall be included in Company's Gross Receipts for the purpose of calculating fees due to the City hereunder.