Ord 2012-032 - Laserfiche WebLink

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shall comply with CHAPTER 74, ARTICLE 4 OF THE CITY OF SAN MARCOS CODE OF ORDINANCES, as amended as to any timing requirements for completion. SECTION 8. Fees 8.1 The City and PEC agree that the Public Rights -of -Way to be used by PEC in the operation of its Transmission and Distribution System is valuable public property acquired and maintained by the City at the expense of its taxpayers. The City and PEC agree that the City will incur costs in regulating and administering the franchise granted by this Ordinance ( "administration costs "). 8.2 In consideration of the use of the Public Way and to defray the City's administration costs, PEC shall, until it adopts customer choice, pay to the City a franchise fee as follows: a) a fee of six and one -half percent (6.5 %) of its Gross Receipts per calendar quarter for the period commencing on September 1, 2012 through August 31, 2013; and b) a franchise fee of four and one -half percent (4.5 %) of its Gross Receipts per calendar quarter for the period commencing on September 1, 2013 through August 31, 2017 (but in no event shall this amount be less than $100,000 per year) payable quarterly as specified in Section 8.5. The City acknowledges that PEC shall be entitled to list the portion of the franchise fee in excess of 2% as a separate line item on monthly bills to its Customers for the retail sale of Electric Utility Services and attribute such charge in excess of 2% to the City until PEC's rates no longer include 2% embedded costs for franchise fees ( "Rate Design Change "). After the Rate Design Change, the City acknowledges that PEC may list and attribute to the City 100% of the franchise fee for the retail sale of Electricity on Customers' monthly bills upon notice required by applicable law. 8.3 In the event that PEC implements customer choice, the franchise fee due under this Franchise shall be a rate consistent with the Texas Utilities Code, § 33.008, Franchise Charges, as it may be amended, for each kilowatt hour of electricity delivered by PEC to Customers within the City of San Marcos for the calendar year. 8.4 The City and PEC recognize that PEC may enter into franchise agreements after the Effective Date of this Franchise with other municipalities. The City and PEC further recognize that PEC may agree to pay for the use of any municipality's Public Rights -of- Way an amount greater than four and one -half percent (4.5 %) of PEC'S Gross Receipts in said municipality. In such an event, PEC shall notify City of its agreement to pay a franchise fee in excess of 4.5% to a municipality and at the City's option, PEC's payments under this section to the City shall be increased, but such rate shall not be implemented sooner than three months after the City's election and written notice to PEC, to an amount equal to the higher Gross Receipts rate, such timing further subject to and PEC agrees to promptly comply with any state law notice requirements that PEC must provide to its Customers to adjust such amount. At the City's sole option, PEC's payments shall be increased pursuant to this section in those instances in which PEC 10