(A) Fee and rental. As consideration for this franchise, which provides for the rental and use by the Authority of the rights-of-way, which are valuable public properties acquired and maintained by the City at great expense to its taxpayers and citizens, the Authority shall pay to the City a franchise fee in the amount of 4% of the annual gross revenue within the City limits, as defined in § 13-4-9-3. As additional consideration for this franchise, the Authority and City agree to the following:
(1) The Authority shall maintain all current fire protection waterline connections at the main waterline and allow for all required new fire protection connections at the main waterline for City facilities;
(2) The Authority shall provide water for fire suppression at no cost to the City. The parties further agree to establish a methodology or process for estimating water usage for fire suppression;
(3) The Authority shall maintain all fire hydrants to operable condition, including periodic painting, for use by the City and the City will inspect, lubricate and flow the hydrants annually. The City will notify the Authority of any defects observed at the time of the inspection. The Authority will notify the City when they receive the documentation of observed defects and when those defects have been corrected. At least quarterly, the Authority will notify the City of the location of all new or relocated hydrants. The Authority will maintain an adequate supply of meters in order for contractors to use fire hydrants for construction purposes.
(4) For dispatch services, Authority operators shall answer all after-hour calls and contact the on-call foreman for the appropriate City department. If the foreman cannot be reached, the Authority operator shall contact 311;
(5) The Authority shall provide billing services for the Solid Waste Management Department including any inserts in the bills at historically based cost of service;
(6) The Authority shall provide the City with vactors or by-pass pumps as requested by the City to aid in pumping out storm drainage systems at the cost of providing such equipment; and
(7) The Authority shall provide at least one supervisor for any City emergency operations center activation.
The franchise fee and services indicated hereinabove shall constitute the only consideration by the Authority to the City for the Authority's use and occupancy of the rights-of-way. Said payments shall be in lieu of any and all other franchise fee, license, privilege, occupation, excise or revenue taxes (except special assessments of general applicability for local improvements on real property of the Authority, fees for barricade and excavation permits, sidewalk permits, curb and gutter permits or other City-required permitting fees) imposed generally by the City on any business, revenue, property, facilities or other appurtenances or any part thereof within the City during the term of this franchise ordinance.
(B) Payment terms. Commencing the month following the month this franchise ordinance becomes effective, the franchise fee shall be paid monthly on the 25th day of each month; such fee shall be based on gross revenues received by the Authority for the preceding month. Nothing herein shall preclude the Authority and the City from agreeing to a revised payment schedule.
(C) Reconciliation. Subject to the terms and conditions of the MOU, and commencing on or before the first day of the thirteenth month following the effective date of this franchise, and annually thereafter, the Authority shall submit to the Treasurer a statement of the franchise fee actually due to the City based upon the actual gross revenue for the year, together with a check for any amount due from the Authority or a statement for any amount due from the City. In the event any sums are owed by the City or Authority, such amount shall include interest from the last day of the franchise year computed at the rate being paid for customer security deposits being held by the Authority. Within 30 days from the submission of the statement of franchise fee owing, or within such reasonable additional time as he or she may request, the Treasurer shall investigate the statement and determine the accuracy of the amounts reported. However, neither payment of the franchise fee nor failure to make such investigation shall stop the City in any way or prevent subsequent investigation or payment of any amount properly due.
(D) Claims. In the event it is claimed by the City that the amount of the franchise fee paid hereunder is insufficient, and such insufficiency is not the result of any collection, distribution or reporting error of the City in accordance with its required performance pursuant to the MOU, or in the event the Authority claims that franchise fees have been overpaid, and the parties cannot agree, the City and the Authority shall attempt to informally negotiate a resolution. In the event that negotiations fail, the dispute shall be submitted to non- binding mediation. The party making the demand shall submit the dispute to the American Arbitration Association ("AAA") pursuant to the Commercial Mediation Rules of the AAA in effect at the time or as otherwise agreed to by the parties.
(E) Contract payment. In the event that the franchise fee set forth in this franchise ordinance is declared illegal, unconstitutional or void for any reason by any court, the Authority shall be contractually bound to pay the City, at the same times and in the same manner as provided for herein, an aggregate amount equal to the amount which would have been paid as a franchise fee.
(Ord. 27-2006)