(A) Compensation.
(1) Compensation. As compensation for any franchise or license granted pursuant to this chapter, a provider shall have the following obligations.
(a) Application fee. In addition to all other fees, permits, or charges, a provider shall pay to the city at the time of application, or amendment to its application, $500 as an application fee.
(b) Franchise. The obligation to pay franchise or license fees shall commence on the completion date. For purposes of this section, the COMPLETION DATE shall be the date of completion of the initial system. Commencing on the completion date, a provider shall pay to the city as reimbursement for costs associated with allowing access to, and as fair compensation for the use of, the right-of-way the following:
1. As a fee for a franchise for a wired communications system, a fee equal to 6% of gross revenues;
2. As a fee for a franchise for an open video system, a fee equal to 6% of gross revenues; and
3. The city may, at its option, agree to accept excess capacity on a system or other facilities in lieu of all, or part of, these fees.
(2) Timing. Unless otherwise agreed to in writing, all fees shall be due and payable on a monthly basis within 15 days of the close of each calendar month.
(B) Future costs. A provider shall pay to the city, or to third parties at the direction of the city, an amount equal to the reasonable costs and expenses that the city incurs for the services of third parties (including, but not limited to, attorneys and other consultants) in connection with any renewal or provider-initiated renegotiation, transfer, amendment, or other modification of this chapter, or a franchise or license granted under the authority of this chapter; provided, however, that in the case of renewal only, the parties shall agree upon a reasonable financial cap at the outset of negotiations. Any costs associated with any work to be done by the Power and Public Works Department to provide space on city-owned poles shall be borne by the provider.
(C) Taxes and assessments. To the extent that taxes or other assessments are imposed by taxing authorities on the use of the city property as a result of a provider’s use or occupation of the rights-of-way, the provider shall be responsible for payment of its pro rata share of such taxes, payable annually unless otherwise required by the taxing authority. Such payments shall be in addition to any other fees payable pursuant to this chapter.
(D) Interest on late payments. In the event that any payment is not actually received by the city on, or before, the applicable date fixed in the franchise or license, interest thereon shall accrue from such date until received at 18% per annum.
(E) Fee statement. Unless a franchise or license provides otherwise, each fee payment shall be accompanied by a statement showing the manner in which the fee was calculated.
(F) No accord and satisfaction. No acceptance by the city of any fee shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of such fee payment be construed as a release of any claim the city may have for additional sums payable.
(G) Not in lien of taxes. The fee payment is not a payment in lieu of any tax, fee, or other assessment, except as specifically provided in this chapter, or as may otherwise be required by applicable law. By way of example, and not of limitation, permit fees and fees to obtain space on the city-owned poles are not waived and remain applicable.
(H) Continuing obligation and holdover. In the event a provider continues to operate all, or any part of, the system after the term of the franchise or license, such operator shall continue to comply with all applicable provisions of the franchise or license, including, without limitation, all compensation and other payment provisions of the franchise or license, throughout the period of such continued operation; provided, that any such continued operation shall, in no way, be construed as a renewal or other extension of the franchise or license, nor as a limitation on the remedies, if any, available to the city as a result of such continued operation after the term, including, but not limited to, damages and restitution.
(I) Costs of publication. A provider shall assume any publication costs associated with its franchise or license that may be required by law.
(Prior Code, § 13.09.040) (Ord. 10-98, passed 5-20-1998)