(1) As compensation for the franchise granted by this chapter, the grantee shall pay to the City an amount equal to five percent of the gross revenue collected by the grantee from its customers, whether the customers are supplied under an interruptible or uninterruptible (firm) tariff schedule and except as otherwise excluded, for gas consumed within the City. The grantee may offset against such compensation the amount of any license, permit or other fees paid to the City in connection with the grantee’s use of the streets, bridges and public places of the City and the amount of any privilege tax particularly imposed upon energy utilities.

(2) The compensation required by this section shall be due for each calendar year, or fraction thereof, within 60 days after the close of such calendar year, or fraction thereof. Within 60 days after the termination of this franchise, compensation shall be paid for the period elapsing since the close of the last calendar year for which compensation has been paid.

(3) The grantee shall furnish to the City with each payment of compensation required by this section a written statement, showing the amount of gross revenue of the grantee within the City for the period covered by the payment computed on the basis set out in subsection (1) of this section. The compensation for the period covered by the statement shall be computed on the basis of the gross revenue so reported. If the grantee fails to pay the entire amount of compensation due the City through error or otherwise, the difference due the City shall be paid by the grantee within 30 days from discovery of the error or determination of the correct amount. Any overpayment to the City through error or otherwise, shall be offset against the next payment due from the grantee.

(4) Acceptance by the City of any payment due under this section shall not be deemed to be a waiver by the City of any breach of this franchise occurring prior thereto, nor shall the acceptance by the City of any such payments preclude the City from later establishing that a larger amount was actually due, or from collecting any balance due to the City. (Ord. 124 § 12, passed 12-13-2016)