ORD 2021-025 Granting to Maxwell Special Utility District

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installed for service directly to the City and of any relocation of other Facilities requested by the City for reasons other than the widening, change of grade, or relocation by the City of Streets or Public Rights -of -Way, or construction or relocation by the City of City utility lines or drainage facilities. SECTION 15. GOVERNMENTAL FUNCTION. All of the regulations and activities required by this Franchise are hereby declared to be governmental and for the health, safety and welfare of the general public. SECTION 16. RECORDS AND REPORTS. 16.1 Books of Account. The District shall keep complete and accurate books of accounts and records of its business and operations under and in connection with this Franchise. All such books of accounts and records shall be kept at the District's principal office in Houston, Texas. 16.2 Access by City. The City may conduct an audit or other inquiry or may pursue a cause of action in relation to the payment of the franchise fee. Each party shall bear its own costs of any such audit or inquiry. Upon receipt of a written request from the City, all books and records related to District's operations under this Franchise shall be made available for inspection and copying no later than thirty (30) days from receipt of such request. 16.3 Interest on Underpayments and Overpayments. 16.3.1 Amounts due to City for late payments shall include interest, compounded daily equal to the return on equity plus three percent (3%) granted to the District in its most recent proceeding fixing rates applicable to customers within the corporate limits of the City, provided such interest will not exceed the maximum interest rate allowed under applicable law. 16.3.2 If the City identifies, as a result of a franchise fee compliance review, amounts owed by the District from prior periods or prior underpayments, then the District shall pay simple interest on such amounts equal to the return on equity granted to the District in its most recent proceeding fixing rates applicable to customers within the corporate limits of the City. Said interest shall be payable on such sums from the date the initial payment was due until it is paid and shall not be billed to customers. 16.3.3 Amounts due District for past overpayments shall include simple interest equal to the return on equity granted to the District in its most recent proceeding fixing rates applicable to customers within the corporate limits of the City; provided, however, if there is a change in the approved return on equity during the time period subject to the City's audit or inquiry, then for each time period during which there was an overpayment, the approved return on equity in effect during such time period shall be used in calculating interest under this subparagraph (c). Interest payable on such sums shall be credited to customers. SECTION 17. EASEMENT. In consideration for the compensation set forth in Section