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Attachment 2 275 each customer class or combine the methods described in (i) – (iii) above in assessing the 276 fee. The City shall seek to use a formula that provides a stable and predictable amount of 277 fees. If the Company claims that the City-required fee formula is discriminatory or 278 otherwise places the Company at a competitive disadvantage, the Company shall provide a 279 formula that will produce a substantially similar fee amount to the City. The City will 280 attempt to accommodate the Company but is under no franchise obligation to adopt the 281 Company-proposed franchise fee formula and suchreview will not delay the 282 implementation of the City-imposed fee. 283 284 8.2.Separate Ordinance.The franchise fee shall be imposed by a separate franchise fee 285 ordinance duly adopted by the City Council, which ordinance shall not be adopted until at 286 least ninety (90) days after written notice enclosing such proposed ordinance has been 287 served upon the Companyby certified mail. The fee shall not become effective until the 288 beginning of a Company billing month at least ninety (90) days after written notice 289 enclosing such adopted ordinance has been served upon the Company by certified mail. 290 Section 2.5 shall constitute the sole remedy for solving disputes between Company and the 291 City in regard to the interpretation of, or enforcement of, the separate ordinance. No action 292 by the City to implement a separate ordinance will commence until this Ordinance is 293 effective. 294 295 8.3.Condition of Fee.The separate ordinance imposing the fee shall not be effective 296 against the Company unless it lawfully imposes a fee of the same or substantially similar 297 amount on the sale of gas energy within the City by any other gas energy supplier, provided 298 that, as to such supplier, the City has the authority or contractual right to require a franchise 299 fee or similar fee through a previously agreed upon franchise. 300 301 8.4.Collection of Fee.The franchise fee shall be payable not less than quarterly and 302 shall be based on the amount collected by Company during complete billing months of the 303 period for which payment is to be madeby imposing a surcharge equal to the designated 304 franchise fee for the applicable customer classification in all customer billings for Gas 305 service in each class. The payment shall be due the last business day of the month following 306 the period for which the payment is made. The franchise fee formula may be changedby 307 ordinancefrom time to time, however, eachchange shall meet the same notice requirements 308 and the fee may not be changed more often than annually. Such fee shall not exceed any 309 amount that the Company may legally charge to its customers prior to payment to the City. 310 The time and manner of collecting the franchise fee is subject to the approval of the 311 Commission. No franchise fee shall be payable by Company if Company is legally unable to 312 first collect an amount equal to the franchise fee from its customer in each applicable class 313 of customers by imposing a surcharge in Company’s applicable rates for Gasservice. Such 314 fee is subject to subsequent reductions to account for uncollectibles and customer refunds 315 incurred by the Company, and correction of erroneous billings. The Company agrees to 316 make available for inspection by the City at reasonable times all records necessary to audit 317 the Company’s determination of the franchise fee paymentsprovided that the City and its 318 designated representative agree in writing not to disclose any information which would 319 indicate the amount paid by any identifiable customer or customers or any other information 320 regarding identified customers. RS160\\30\\1040203.v1 Qbhf!227!pg!74: