Chapter 13.20
UTILITY FRANCHISES AND LICENSES

Sections:

13.20.010    Definitions.

13.20.020    Fees and licenses.

13.20.030    Exceptions and deductions.

13.20.040    Monthly payment of fee or license.

13.20.050    Sale or transfer of business.

13.20.060    Books and records – Returns confidential.

13.20.070    Recorder to investigate returns.

13.20.080    Overpayment or underpayment of fee.

13.20.090    Remedy for nonpayment.

13.20.100    Appeal to council.

13.20.110    Recorder may make rules.

13.20.120    False returns, etc.

13.20.130    Penalty.

13.20.010 Definitions.

As used in this chapter, the following mean:

“Franchise fee” means a fee (fee) paid by every franchised utility operating in the city’s right-of-way; the tax is in an amount equal to seven percent of the gross revenues of the utility currently earned within the city.

“Gross revenue” means those revenues derived from network, infrastructure, services, communications, products, commodities, equipment, technology, access lines or channels which provide local access from the premises of a customer or subscriber within the city to the utilities’ local network, infrastructure, service, and/or commodity to effect the transfer of information, communications, services, products, commodity, and/or technology and, unless a separate tariff rate is charged therefor, any facility or service provided in connection therewith, less net uncollectible from such revenues.

“Person” means a natural person, firm, partnership, corporation or other association of natural persons, either acting individually or through an agent or employee.

“Right-of-way” means a street, alley, or other thoroughfare or easement, whether physically accessible or not, that has been permanently established or dedicated for the passage of persons or vehicles. Title to this land remains with the public or private agency until the need no longer exists.

“Service” includes equipment and facilities.

Small Cell Wireless Facility. “Small wireless” and “small wireless facility” shall have the same meaning as a small wireless facility as set forth in 47 CFR 1.6002(l).

“Telecommunications utility company” includes companies providing services for standard hard-wired telephone, wireless telephone, internet connectivity, and cable television.

“Utility license” means a license (license), the amount set by the Coos Bay city council, paid by a telecommunications or other utility for the privilege to occupy the city’s right-of-way. [Ord. 516 § 1, 2019].

13.20.020 Fees and licenses.

Every utility occupying the city right-of-way within the city for other than travel shall enter into a franchise or license agreement with the city and pay applicable fees. Every franchised utility occupying and operating within the city right-of-way shall pay a franchise fee for the use of said right-of-way in an amount equal to seven percent of the gross revenues of the utility currently earned within the city or pay the franchise fee whichever is more. Franchise and license fees for small cell wireless facilities and services shall be consistent with federal regulations. [Ord. 516 § 2, 2019].

13.20.030 Exceptions and deductions.

Excepted and deducted from the total gross revenue upon which the fee is computed is any part derived from transactions in interstate or foreign commerce; or from business done for the federal government and any amount paid by the utility to the federal, state, or city government as excise taxes levied or imposed upon the sale or distribution of property or service. No fee is required which would cause a violation of federal or state laws. [Ord. 516 § 3, 2019].

13.20.040 Monthly payment of fee or license.

The utility shall pay the fee or license in monthly installments based on the gross income of the previous month. Each installment shall be paid on or before the twenty-fifth day of the month. [Ord. 516 § 4, 2019].

13.20.050 Sale or transfer of business.

If the ownership of a utility is sold or transferred, the purchaser or transferee shall be responsible for the payment covering the period of time during which the purchaser or transferee carried on the business. [Ord. 516 § 5, 2019].

13.20.060 Books and records – Returns confidential.

Each utility subject to this chapter shall keep proper records that accurately reflect and efficiently permit verification of the amount of gross income for the utility. The records shall be open to the inspection of the recorder or designate, and to members of the council. To the extent allowed by state law, records will not be made public and will be inspected only by authorized city officials. [Ord. 516 § 6, 2019].

13.20.070 Recorder to investigate returns.

If a utility fails to make a payment, or if the recorder is dissatisfied as to the correctness of a payment, the utility shall allow the recorder or designee to enter the premises of the utility at any reasonable time for the purpose of inspecting the records of account to ascertain the amount of the fee or to determine the correctness of the statements. [Ord. 516 § 7, 2019].

13.20.080 Overpayment or underpayment of fee.

If the recorder finds that the fee or license paid is more than the amount required of the utility, the overpaid amount shall be refunded. If the recorder finds that the fee or license is less than required, a statement showing the balance due shall be sent directing the utility to pay the amount within three days. [Ord. 516 § 8, 2019].

13.20.090 Remedy for nonpayment.

If a utility fails to pay the fee or license within three days after it becomes due, the recorder shall determine the amount of the fee or license due and notify the utility. The city may collect the amount due by any appropriate means, including suit or action in the name of the city. [Ord. 516 § 9, 2019].

13.20.100 Appeal to council.

(1) A utility may appeal to the council a fee or license determination made by the recorder by filing a written notice of appeal with the recorder within five days from the time the utility was given notice of the amount due. The recorder shall notify the utility of the time and place of the hearing, which shall be held not more than 10 days after the filing of the notice.

(2) The utility shall be entitled to be heard and present evidence in its behalf. The appellant shall appear and produce any pertinent records if requested to do so by the council.

(3) The council shall ascertain the correct amount of the fee or license by resolution and shall immediately notify the appellant. The amount, together with costs of the appeal if the appellant is unsuccessful, must be paid within three days after notice of the determination is given. [Ord. 516 § 10, 2019].

13.20.110 Recorder may make rules.

The recorder may adopt and enforce rules and regulations not inconsistent with this chapter for the purpose of carrying out the provisions of this chapter. No person shall violate or fail to comply with any such rule or regulation. [Ord. 516 § 11, 2019].

13.20.120 False returns, etc.

No person shall:

(1) Fail or refuse to make a report or pay a fee when due, as required by this chapter.

(2) Make a false or fraudulent report or any false statement or representation in connection with any report required by this chapter.

(3) Aid or abet another in an attempt to evade payment of a fee required by this chapter.

(4) Testify falsely on any investigation of a report or at an appeal hearing, or in any manner hinder or delay the city or its officers in carrying out the provisions of this chapter. [Ord. 516 § 12, 2019].

13.20.130 Penalty.

Violation of a provision of this chapter is punishable by a fine not to exceed $500.00. Each day’s violation shall constitute a separate punishable offense. [Ord. 516 § 14, 2019].