(1) Annual Registration Fee. Each person required to register under section 3.405 of this code, except an operator of a private communications system, shall pay to the city an annual registration fee in the amount of 2% of the registrant’s gross revenues derived from its telecommunication activities within the city. In addition, the first annual registration fee paid by a registrant shall include an additional charge, in an amount set by the city manager pursuant to section 2.020 of this code, that is calculated to recover all of the city’s costs incurred in processing the registration, as well as a share of the city’s costs in preparation of the city’s telecommunications plan, this ordinance, and the implementing rules.
(2) Annual License Fee. As compensation for use of right-of-way, each operator required to obtain a license pursuant to section 3.410 of this code shall pay, in addition to the registration fee described in subsection (1) of this section, a fee in the amount of 7% of the licensee’s gross revenues derived from telecommunications activities within the city, to compensate the City for the use of the rights-of-way.
(3) Private Communications System. In lieu of the fees required by subsections (1) and (2), a private communications system licensee shall pay to the city a fee based on a per foot rate to be established pursuant to section 2.020 of this code in an amount not less than the amount needed to ensure no degradation of the right-of-way.
(4) Effect of Federal and State Law. To the extent that federal or state law, or an existing franchise agreement, limits the amount of fees which the City may impose on, or the compensation it may require from, an operator, nothing in this section shall require the payment of any greater amount, unless and until the federal or state limits are raised, or the franchise agreement expires or is otherwise terminated.
(5) Other Fees. Payment of fees required by this section shall be in addition to both application fees required by this chapter, and any other fees required pursuant to chapters 7, 8 or 9 of this code.
(6) In Lieu of Fee Payment.
(a) In lieu of part or all of the annual registration and license fees, the city may accept in-kind services which the city manager determines have a value to the city equal to or greater than the registration and license fees, or the portion of those fees in lieu of which the city will accept services. If the city manager agrees to the in-kind payment, the registration or license shall reflect this agreement.
(b) Prior to the city manager agreeing to such an arrangement, the operator shall provide to city, at the operator’s expense, an analysis prepared by an independent entity, which demonstrates that the value of the in-kind service is equal to or greater than the license fee (or portion of fee) to be waived. In addition, the city manager shall give at least 20 days notice to the city council of the proposed arrangement. If any two city councilors give the manager written objections to the proposed arrangement within the 20 day period, the manager shall not agree to the proposal unless the council votes to approve the proposal.
(c) If an operator fails to provide all or a portion of the in-kind service reflected in the registration or license, the operator shall be liable to the city for the full amount of the annual registration and license fees pursuant to subsections (1) and (2) of this section for the year or years in which the in-kind service or a portion thereof is not provided. In addition, the city manager may terminate the arrangement for in-kind services and amend the registration or license accordingly.
(7) Payment of Annual Registration and License Fees.
(a) Unless otherwise specified, the annual registration and license fees shall be paid to the City quarterly, and not later than forty-five (45) days after the end of each calendar quarter.
(b) Each payment shall be accompanied by a statement showing the manner in which the fee was calculated, and shall be personally delivered or mailed to the city on or before the due date. If mailed, the postmark shall be considered the date of delivery.
(c) For good cause, the city may extend for not to exceed one month, the time for making payment and filing the statement. Any person or operator to whom an extension is granted shall pay interest at the rate of 1.5% per month on the amount of fee due, without proration for a fraction of a month. If the statement is not filed and the fee and interest due is not paid by the end of the extension period, then the interest shall become part of the fee for computation of penalties prescribed in subsection (4) of this section.
(d) No acceptance by the city of any payment hereunder shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of such payment be construed as a release of any claim the city may have for additional sums payable.
(e) The payments hereunder are not a payment in lieu of any tax, fee or other assessment except as specifically provided in this section, or as required by applicable law.
(f) Within ninety (90) days following the end of the calendar year, each person or operator which paid a fee hereunder shall submit a statement, certified as true by an independent auditor or the chief financial officer of such person or operator, setting forth its gross revenues, by category, and describing what revenues were included and excluded in calculating the fee or fees, and any adjustments made to gross revenues.
(g) The city may, from time to time, and upon reasonable advance written notice, inspect, copy and audit any and all books and records of a registrant or licensee reasonably necessary to the determination of whether fees have been accurately computed and paid.
(h) Notwithstanding the foregoing, in the event a registrant or licensee that is obligated to pay a fee ceases to provide service for any reason (including as a result of a transfer), such registrant or licensee shall make a final payment of any amounts owed to the city within ninety (90) calendar days of the date its operations in the city cease, and shall provide a statement of gross revenues for the calendar year through the date operations ceased which statement shall contain the information and certification required by this section.
(8) Penalties and Interest.
(a) Any registrant or licensee who has not been granted an extension of time for remittance of a fee due and who fails to remit any fee imposed under this section prior to delinquency shall pay a penalty of ten percent (10%) of the amount of the fee due in addition to the amount of the fee.
(b) Any registrant or licensee who has not been granted an extension of time for remittance of a fee due, and who fails to pay any delinquent remittance on or before a period of 30 days following the date on which the remittance first becomes delinquent shall pay a second delinquency penalty of fifteen percent (15%) of the amount of the fee due plus the amount of the fee and the ten percent (10%) penalty first imposed.
(c) If the city determines that the nonpayment of any remittance due under this section is due to fraud or intent to evade the provisions hereof, a penalty of twenty-five percent (25%) of the amount of the fee shall be added thereto in addition to the penalties stated in subparagraphs (b) and (c) of this subsection.
(d) In addition to the penalties imposed, any registrant or licensee who fails to remit any fee imposed by this section shall pay interest at the rate of 1.5% per month or fractions thereof, without proration for portions of a month, on the amount of the fee due, exclusive of penalties, from the date on which the remittance first becomes delinquent, until paid.
(e) Every penalty imposed, and such interest as accrues under the provisions of this section, shall be merged with, and become a part of, the fee required to be paid.
(f) Any person required to pay a penalty under this section may appeal to the city manager as provided in section 2.021 of this code.
(9) Calculation of Fees. In determining gross revenues for the calculation of fees under this section, the city shall consider mobile telecommunications services to occur within the city if they are used by a customer whose place of primary use is within the city. As used in this section, “place of primary use” means the residential street address or the primary business street address of the customer. The city shall apply this provision consistently with the Mobile Telecommunications Sourcing Act, 4 USC 116 to 126.