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Attachment 1 301 10.1. Form. During the term of the franchise hereby granted, and inlieu of any permit or 302 other fees being imposed or that the City has a right to impose on Company, the City may 303 charge the Company a franchise feeby collecting the amounts the parties have agreed to as 304 indicated in a Fee Schedule set forth in a separate franchise fee ordinance from each customer in 305 the designated Company Customer Class The fee may be (i) a percentage of gross revenues 306 received by the Company for its operations within the City, or (ii) a flat fee per customer, 307 or (iii) a fee based on some other basis as agreed to by the parties. The method of imposing 308 the franchise fee, the percentage of revenue rate, or the flat rate may differ for each 309 customer class or combine the methods described in (i) - (iii) above in assessing the fee. 310 The City shall seek to use a formula that provides a stable and predictable amount of fees. 311 If the Company claims that the City-required fee formula is discriminatory or otherwise 312 places the Company at a competitive disadvantage, the Company shall provide a formula 313 that will produce a substantially similar fee amount to the City. The City will attempt to 314 accommodate the Company but is under no franchise obligation to adopt the Company- 315 proposed franchise fee formula and such review will not delay the implementation of the 316 City-imposed fee. 317 318 10.2. Separate Ordinance. The franchise fee shall be imposed by a separate franchise 319 fee ordinance duly adopted by the City Council, which ordinance shall not be adopted until 320 at least ninety (90) days after written notice enclosing such proposed ordinance has been 321 served upon Company by certified mail. The fee shall not become effective until the 322 beginning of a Company billing month at least ninety (90) days after written notice 323 enclosing such adopted ordinance has been served upon Company by certified mail. 324 Section 2.5 shall constitute the sole remedy for solving disputes between Company and the 325 City in regard to the interpretation of, or enforcement of, the separate ordinance. No action 326 by the City to implement a separate ordinance will commence until this Ordinance is 327 effective. 328 329 10.3. Collection of Fee. The franchise fee shall be payable not less than quarterly and 330 shall be based on the amount collected by Company during complete billing months of the 331 period for which payment is to be made by imposing a surcharge equal to the designated 332 franchise fee for the applicable customer classification in all customer billings for electric 333 service in each class. The payment shall be due the last business day of the month following 334 the period for which the payment is made. The franchise fee formula may be changed by 335 ordinance from time to time; however, each change shall meet the same notice 336 requirements and the fee may not be changed more often than annually. Such fee shall not 337 exceed any amount that the Company may legally charge to its customers prior to payment 338 to the City. The time and manner of collecting the franchise fee is subject to the approval 339 of the Commission. No franchise fee shall be payable by Company if Company is legally 340 unable to first collect an amount equal to the franchise fee from its customer in each 341 applicable class of customers by imposing a surcharge in Company’s applicable rates for 342 electric service. Such fee is subject to subsequent reductions to account for uncollectibles, 343 customer refunds incurred by the Company, and correction of erroneous billings. The Qbhf!217!pg!74: