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determines that said insurance is inadequate,the Company shall add to the insurance <br /> coverage to the extent reasonably required by the City. <br /> SECTION 12. PERMITS;INITIAL CONSTRUCTION SCHEDULE. <br /> Subdivision 1. Initial installation and future extensions of NSP gas mains and related <br /> facilities shall be subject to all generally applicable necessary governmental permits, <br /> licenses,certificates and authorizations,including associated City permit or license fees <br /> (except as provided in Section 13, Subdivision 1). <br /> Subdivision 2. Notice of Initial Construction Schedule. NSP shall provide the City <br /> Clerk with an estimated,street specific,schedule of initial construction of NSP's gas <br /> mains and related facilities within the City at least two(2)weeks prior to the <br /> commencement of such construction. In the event the schedule is changed during <br /> construction,NSP shall promptly provide the City Clerk with a revised construction <br /> schedule. <br /> SECTION 13. FRANCHISE FEES. <br /> Subdivision 1. Separate ordinance. During the term of the franchise hereby granted, <br /> and in lieu of any permit,license or other fees being imposed on NSP,the City may <br /> impose on NSP a franchise fee of not more than four percent(4%)of NSP's gross <br /> revenues as hereinafter defined. The franchise fee shall be imposed by a separate <br /> ordinance duly adopted by the City Council,which ordinance shall not be adopted until <br /> at least sixty(60)days after written notice enclosing such proposed ordinance has been <br /> served upon NSP by certified mail. The fee shall not become effective until at least sixty <br /> (60)days after written notice enclosing such adopted ordinance has been served upon <br /> NSP by certified mail. Section 15,subdivision 3 of this ordinance shall constitute the <br /> sole remedy for solving disputes between NSP and the City in regard to the interpretation <br /> of,or enforcement of,the separate ordinance,provided that either party will waive <br /> arbitration and consent to resolution by the District Court if necessary to bind third <br /> parties involved in the dispute. No action by the City to implement a separate ordinance <br /> will commence until this Ordinance is effective. No preexisting ordinance imposing a <br /> franchise fee shall be effective against NSP unless it is specifically amended after the <br /> effective date of this Ordinance following the procedures of this Section 13,subdivision <br /> 1 for the adoption of a new separate ordinance. <br /> Subdivision 2. Terms Defined. The term"gross revenues"means all sums received by <br /> NSP, including service charges,from the sale of gas to its retail customers within the <br /> corporate limits of the City,excluding any New Area Surcharge Rider(or successor), <br /> sales tax,miscellaneous tariff charges or any similar addition to the NSP's charges to <br /> customers for the purpose of reimbursing NSP for cost resulting from the franchise fee <br /> and further excluding the amount determined by NSP to be the cost of any sales tax as <br /> . 1 <br /> ;7 <br />