(a) For the reason that the streets, highways and rights-of-way or easements to be used by a grantee in the operation of its telecommunication system within the boundaries of the City are valuable public properties, some of which are acquired and maintained by the City at great expense to its taxpayers, and that the grant to a grantee of the use of said streets, highways, rights-of-way or easements is a valuable property right without which a grantee would be required to invest substantial capital in right-of-way costs and acquisitions, a grantee shall pay:
(1) A franchise formation fee:
A. For franchises, ten thousand dollars ($10,000); or
B. For licenses, two thousand dollars ($2,000); and
(2) An annual fee equal to the lesser of five percent of its gross revenue, or an amount determined as set forth in subsection (b) hereof.
(b) The fee to be charged to a grantee under paragraph (a)(2) hereof shall be the grantee's allocated share of the following amounts:
(1) The estimated actual cost (excluding acquisition costs) incurred by the City as a consequence of permitting a grantee to occupy a portion of the public rights-of-way and in mediating disputes between the citizens of the City and the grantee.
(2) The estimated actual costs referred to in paragraph (b)(1) hereof shall be calculated every three years by the City Finance Director and shall be subject to approval by the City Council following a public hearing. The costs referred to in paragraph (b)(1) hereof shall be allocated among all of the grantees based on their per-linear foot (not number of lines or capacity) of the telecommunication system located upon, over, across or under the roads, bridges, streets, rights-of-way and easements in the City.
(3) The annual fee required by paragraph (a)(2) hereof may be determined using:
A. A percentage of gross revenues not exceeding five percent; or
B. $0.40 per linear foot of underground and $0.25 per linear foot of overhead lines, wires, cables, poles, conduits and like structures, erections and fixtures upon, over, across, or under the roads, bridges, streets, public rights-of-way and easements in the City.
(c) Miscellaneous fee considerations shall include the following:
(1) Grantees sharing the same conduit shall each pay a full fee.
(2) Grantees sending signals over another grantee's existing line or a line that is leased to another and upon which fees are already paid are not subject to additional fees.
(3) Grantees using the same line to provide cable television service and to provide telecommunication services shall be subject to both a cable television franchise fee and all fees set by this chapter.
(d) A grantee shall pay to the City for each quarter an amount equal to one-fourth of the minimum annual fee, calculated on the basis of a twelve-month compensation year. A grantee shall forward by check or money order an amount equal to the quarterly payment by noon of the twenty-fifth day of the calendar month immediately following the close of the calendar quarter for which the payment is calculated. Any necessary prorations shall be made.
(e) In the event any quarterly payment is made after noon on the date due, a grantee shall pay a late payment penalty of the greater of one hundred dollars ($100.00) or simple interest at ten percent annual percentage rate of the total amount past due. Acceptance of money under this section shall not in any way limit or inhibit any of the privileges or rights of the City, whether under this chapter or otherwise.
(f) In the event the five percent of gross revenue option is utilized, a grantee shall file annually with the City Manager no later than ninety days after the end of the grantee's fiscal year, a statement of revenues (for that year) attributable to the operations of the grantee's telecommunication system within the City. Said statement shall be prepared in compliance with generally accepted accounting practices and auditing standards. This statement of revenues shall present a detailed breakdown of gross revenues and uncollectible accounts for the year. This statement of revenues shall be certified by an officer of the grantee, whose statement shall accompany the statement of revenues.
Any transactions which have the effect of circumventing payment of required franchise fees and/or evasion of payment of franchise fees by non-collection or non-reporting of gross revenues, bartering, or any other means which evade the actual collection of revenues for business pursued by a grantee are prohibited.
(g) License and franchise fees shall be in addition to any other tax, charge, fee, or payment due the City by a grantee.
(Ord. 99-07. Passed 3-2-99.)