§ 4. Compensation to the City  


Latest version.
  • In consideration of and as compensation for the franchise hereby granted to Company by the City, the Company shall make an accounting to the City of all natural gas that has been Distributed on a monthly basis. The Company shall pay the City:

    (a) A sum equal to five percent of the Gross Receipts received from the Distribution of natural gas; and,

    (b) A sum equal to the Volumetric Rate multiplied by the number of MCF of Transport Gas.

    The sums in (a) and (b) above shall be adjusted for uncollectible receivables and for uncollectible receivables which are later collected.

    Payments shall be made to the City under procedures which are mutually agreed to by the Company and the City within 30 days of the last day of the month to which such accounting shall apply.

    In the event the accounting rendered to the City by the Company is found to be incorrect, then payment shall be made on the corrected amount, it being agreed that 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. The Company agrees that all of its books, records, and documents and all of its contracts and agreements as may be reasonably necessary for an effective compliance review of this ordinance shall at all reasonable times be opened to the inspection and examination of the officers of the City and its duly authorized agents, auditor, and employees for the purpose of verifying said accounting, or for any other lawful purpose. Notwithstanding the obligation herein, the Company shall have the right to request the reasonable protection of proprietary information and to provide redacted documents or require the City or its agents to enter into such agreements pertaining to confidentiality as may reasonably protect the proprietary information of the Company but which do not unreasonably frustrate the purposes of this subsection. The Company shall have no obligation, however, to make payment upon Transport Gas for which the Company has not been paid; the Company shall provide notice to the City of such delinquent accounts within 90 days and the City shall hold the Company harmless from the cost or liability for the collection of franchise fees and late payment charges on such delinquent accounts.

    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.