(A) Amount. As compensation for the benefits and privileges granted under this franchise, and for grantee’s entry upon and deployment within the right-of-way, grantee shall pay to the city an amount equal to 5% of grantee’s gross revenues (the “franchise fee”). The franchise fee includes all compensation for the use of the right-of-way. The franchise fee shall not be deemed to be in lieu of or a waiver of any ad valorem property tax which the city may now or hereafter be entitled to, or, or to participate in, or to levy upon the property of grantee.
(B) Due date. The franchise fee shall be due for each quarter ending March 31, June 30, September 30, and December 31, or fraction thereof, within 45 days after the close of such quarter, or fraction thereof. Within 45 days after the termination of this franchise, compensation shall be paid for the period elapsing since the close of the last calendar year for which compensation has been paid. Any payment not made when due shall accrue interest at 9% per annum until paid.
(C) Report. Grantee shall furnish a statement to the city with each payment of compensation, in a form acceptable to the city, showing the amount of gross revenues for the period covered by the payment computed on the basis set out in division (A) of this section. The compensation for the period covered by the statement shall be computed on the basis of the reported gross revenues. Grantee may identify information submitted to the city as confidential by prominently marking any such information with the mark “confidential” in letters at least one-half inch in height. Subject to the disclosure requirements of state or federal law, including the Oregon Public Records Law, the city shall treat any such information as confidential and not subject to public disclosure. The grantee shall provide written verification of the amount of gross revenues, executed by an authorized officer of grantee or the officer’s authorized designee, upon demand by the city.
(D) Acceptance of payment and recomputation. If grantee discovers any underpayment in the correct amount of compensation due, the city shall be paid the difference due within 30 days of discovery of the error or determination of the correct amount. Any overpayment to the city through error or otherwise shall be offset against the next payment. Acceptance by the city of any payment due under this section shall not be deemed as an accord that the amount paid is the correct amount, nor shall any acceptance of payment be construed as a release of any claim the city may have for additional funds or as a waiver by the city of any breach of this franchise.
(E) New business. The city specifically reserves the right to impose a fee or tax, as allowed by generally applicable law, on any new business undertaking of grantee that is operated within the city. The city may otherwise separately regulate and obtain compensation for any other use of the city’s rights of way than those specifically authorized herein. The provisions of this franchise agreement do not impair the imposition of ad valorem taxes on the property of the grantee as allowed by law.
(F) Renegotiation. Upon 30 days written notice by either party to the other of a requested modification, the provisions of division (A) above of this section may be modified. If the parties are unable to agree to a modification of division (A) or to a continuation of the same provisions within 90 days of receipt of the notice of requested modification, or such longer time as may be agreed to by the parties, the franchise shall terminate.
(Ord. 2008-04-01, passed 4-8-2008; Ord. 2010-04-01, passed 5-13-2010)