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As compensation for the benefits and privileges under its franchise and in consideration of permission to use the right-of-way of the City, the grantee shall pay a quarterly franchise fee to the City, through the duration of its franchise, as follows:

A. The minimum quarterly franchise fee shall be set by resolution of the council.

B. The franchise fee for a telecommunication utility shall equal 7% of its gross revenue on exchange access services earned within the boundaries of the City.

C. Except for limited use telecommunication grantees, the franchise fee shall equal a percent of the grantee’s gross revenues derived from grantee’s provision of telecommunications services and telecommunications facilities to retail customers and one percent (1%) on all other gross revenues derived from grantee’s provision of telecommunications services and telecommunications facilities to wholesale customers, including other telecommunications carriers, if such customers or carriers are also telecommunication grantees under this title. If such customers or carriers are not grantees, then the franchise fee shall equal the fee for retail customers. The amount of the percent for retail customers shall be set by resolution of the council.

D. A limited use telecommunication grantee shall pay a fee based on the number of linear feet of right-of-way used. A limited use telecommunication grantee is defined as one whose franchise limits the amount of linear feet the grantee may occupy or one who has a franchise as of October 1998 for the purpose of long distance telecommunications. The fee per linear foot shall be set by resolution of the council.

The annual franchise fee collectible from a telecommunications utility shall not exceed the maximum amount under Oregon Law. The City shall accept from a telecommunications utility, in full payment of the franchise fee, the maximum amount allowed under Oregon law. On request, the telecommunications utility must provide documentation to support its calculation.

E. Grantee shall be “providing” telecommunications services or facilities if it sells, leases, resells, or otherwise conveys such services or facilities for consideration.

F. A grantee providing resold telecommunications services or facilities shall be entitled to a credit against its franchise fee for an amount equal to a percentage of the price paid for such services or facilities at wholesale. Such percentage shall be set by resolution of the council.

G. So long as it registers with the City as required in chapter 16.08 and pays the fees required for grantees set forth is subsections A and B above, a reseller may use another person’s facilities to engage in telecommunications activities in the right-of-way without obtaining a franchise, providing the reseller does not, either itself or through an affiliate, own or lease, control or manage any facilities in the right-of-way and is not involved in construction or repair of facilities in the right-of-way.

For purposes of calculating the fees to be paid by a reseller, the amount of compensation paid by the reseller to the owner or manager of facilities in the right-of-way for the services it resells shall be deducted from the reseller’s gross revenues before applying the percentage rates described in subsection C above.

H. Payment shall be made by each April 25, July 25, October 25 and January 25 for the quarter just ended.

Any grantee who fails to remit any fee imposed by this chapter within 30 days of the date it is due, shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the fee from the date on which the remittance first became due until paid. (Ord. 2850 § 33, amended, 10/19/1999)

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