(A) Compensation. As fair and reasonable compensation for any franchise granted pursuant to this subchapter, a provider shall have the following obligations.
(1) Application fee. In order to offset the cost to the city to review an application for a franchise, and in addition to all other fees, permits, or charges, a provider shall pay to the city, at the time of application, $500 as a non-refundable application fee.
(2) Franchise fees. The franchise fee, if any, shall be set forth in the franchise agreement. The obligation to pay a franchise fee shall commence on the completion date. The franchise fee is offset by any business license fee or business license tax enacted by the city.
(3) Excavation permits. The provider shall also pay fees required for an excavation permit as provided in the city’s excavation permit and street cut ordinances.
(B) Timing. Unless otherwise agreed to in the franchise agreement, all franchise fees shall be paid on a monthly basis within 45 days of the close of each calendar month.
(C) Fee statement and certification. Unless a franchise agreement provides otherwise, each fee payment shall be accompanied by a statement showing the manner in which the fee was calculated and shall be certified as to its accuracy.
(D) 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 reasonable 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 renegotiations, or amendment of this subchapter or a franchise; provided, however, that the parties shall agree upon a reasonable financial cap at the outset of negotiations. In the event the parties are unable to agree, either party may submit the issue to binding arbitration in accordance with the rules and procedures of the American Arbitration Association, or the functional equivalent thereof. Additionally, any costs associated with any work to be done by the Power and Public Works Department to provide space on city-owned poles, if any, shall be borne by the provider.
(E) Taxes and assessments. To the extent taxes or other assessments are imposed by taxing authorities, other than the city 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 subchapter.
(F) 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, interest thereon shall accrue from such date until received at the rate charged for delinquent state taxes.
(G) 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.
(H) Not in lieu of other taxes or fees. The fee payment is not a payment in lieu of any tax, fee, or other assessment except as specifically provided in this subchapter, or as required by applicable law. By way of example, and not limitation, excavation permit fees and fees to obtain space on the city-owned poles are not waived and remain applicable.
(I) 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, such operator shall continue to comply with all applicable provisions of this subchapter and the franchise, including, without limitation, all compensation and other payment provisions 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, 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.
(J) Costs of publication. A provider shall assume any publication costs associated with its franchise that may be required by law.
(Prior Code, § 13.10.040) (Ord. 11-98, passed 5-20-1998)