§ 5. Compensation.


Latest version.
  • (a) In consideration of Contract Franchise Ordinance 48-982, Kansas Fiber Network, LLC shall remit to the City of Wichita a Franchise Fee in the amount of, the greater of (A) five percent (5%) of gross revenues derived from services provided within the corporate boundaries of the City of Wichita which include: (i) recurring revenue derived from Kansas Fiber Network's Voice over Internet Protocol ("VoIP") service for business and residence; (ii) recurring revenue for broadband internet access service ("BIAS") for business and residence; and, (iii) recurring revenue derived from leasing Kansas Fiber Network's dark fiber and indefeasible rights of use ("IRU") fees; or (B) $1,418.75 per month.

    (b)

    The first Franchise Fee payment shall be due and payable sixty-one (61) calendar days after the effective date of this agreement and upon a monthly basis thereafter due on the 15 th of the month, or if the 15 th falls on a weekend or holiday, the first business day following. 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.

    (c)

    Kansas Fiber Network, L.L.C. shall remit Franchise Fees in the amount of $51,075.00 as Franchise Fee payment under franchise ordinance 48-982 for years 2014, 2015, 2016. This payment is due and payable sixty-one (61) calendar days after the effective date of this modification of franchise agreement.

    (d)

    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.

    (e)

    The Franchise Fee is in addition to, and not in lieu of, the City's Telecommunications Service Occupation Tax under Wichita City Code section 3.90.020. Kansas Fiber Network, LLC shall receive credit toward total Franchise Fee payment pursuant to Wichita City Code section 3.93.350 for occupation tax paid.

    (f)

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

    All other provisions and terms in Franchise Ordinance 48-982 are unchanged and remain in effect.

    IN WITNESS WHEREOF, the undersigned have caused this Franchise Agreement to be executed as of the date noted above.

    CITY OF WICHITA

          Jeff Longwell-Mayor

       

    APPROVED AS TO FORM:

          Jennifer Magaña
          City Attorney and Director of Law

       

    ATTEST:

          Karen Sublett
          City Clerk

       

    KANSAS FIBER NETWORK, LLC

          Bob Wallentine
          Vice President of Network Planning & Development

       

(Ord. No. 50-426, 3-10-2017)