§ 5. Compensation.  


Latest version.
  • (a) In consideration of this contract franchise ordinance, Kansas Fiber Network, L.L.C. agrees to remit to the City a franchise fee of five percent (5%) of Gross Receipts. To determine the Franchise Fee, Kansas Fiber Network, L.L.C. shall calculate the Gross Receipts and multiply such receipts by 5%. Thereafter, compensation for each calendar year of the remaining term of the contract franchise ordinance shall continue to be based on a sum equal to 5% of Gross Receipts.

    (b)

    Beginning January 1, 2004, and every 36 months thereafter, the City, subject to the public notification procedures set forth in K.S.A. 12-2001 (1) and (m), as amended, may elect to adopt an increased gross receipts fee subject to the provisions and maximum fee limitations contained in K.S.A. 12-2001, as amended, or may choose to decline all or any portion of any increase in the access line fee.

    (c)

    The Franchise Fee shall be due and payable on a monthly basis within thirty (30) calendar days after the end of the remittal period. If any Franchise Fee, or any portion thereof, is not postmarked or delivered on or before the due date, interest thereon shall accrue from the due date until received, at the applicable statutory interest rate.

    (d)

    Franchise Fee payments shall be accompanied by a 9K2 (gross receipts) statement showing the manner in which the Franchise Fee was calculated on a quarterly basis. No acceptance by the City of any Franchise Fee shall be construed as an accord that the amount paid is, in fact the correct amount, nor shall acceptance of any Franchise Fee payment be construed as a release of any claim of the City. Any dispute concerning the amount due under this Section shall be resolved in the manner set forth in K.S.A. 12-2001, as amended.

    (e)

    The City or its designated representatives shall have the right to examine, upon written notice to Kansas Fiber Network, L.L.C. no more often than once per calendar year, those records necessary to verify the correctness of the Franchise Fees.

    (f)

    Within sixty (60) days of the effective date of this contract franchise ordinance, Kansas Fiber Network, L.L.C. shall pay to the City a one-time application fee of One Thousand Dollars ($1,000.00). The parties agree that such fee reimburses the City for its reasonable, actual and verifiable costs of reviewing and approving this contract franchise ordinance. Kansas Fiber Network, L.L.C. shall additionally pay the publications costs of this ordinance.

    (g)

    The Franchise Fee required herein shall be in addition to, not in lieu of, all taxes, charges, assessments, licenses, fees and impositions otherwise applicable that are or may be imposed by the City under K.S.A. 12-2001 and 17-1902, as amended. The Franchise Fee is compensation for use of the Public Right-of-Way and shall in no way be deemed a tax of any kind.