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(A) An application fee shall not be deemed to be “franchise fees” within the meaning of Section 11722 of the Cable Act (47 U.S.C. §542), and such payments shall not be deemed to be (i) “payments in kind” or any involuntary payments chargeable against the compensation to be paid to the town by grantee, or (ii) part of the compensation to be paid to the town by grantee pursuant to this chapter or a franchise agreement.
(B) All applicants for an initial franchise grant shall submit an application fee of $6,500 to compensate the town for its costs in reviewing, preparing, and awarding a franchise, including the costs of outside consultants. Upon grant of a franchise the town may request the payment of an additional fee to the extent that the reasonable costs of the franchise review and negotiation process exceed the initial application fee amount. Consistent with the Cable Act, all such fees shall not constitute or be credited towards a grantee’s franchise fee obligations. Reasonable costs include staff time, professional fees, and administrative costs as determined by the town to be necessary.
(C) The town reserves the right, unless prohibited by applicable law, to require a grantee to pay the reasonable costs of the franchise renewal and negotiation process. Reasonable costs include staff time, professional fees, and administrative costs determined by the town to be necessary and generally will not exceed $7,500, the payment of which shall not be treated as a franchise related cost or passed through to subscribers.
(Ord. 1497, passed 2-22-06)