Chapter 13.20
FRANCHISES

Sections:

13.20.010    Terms.

13.20.020    Privilege tax imposed.

13.20.030    Franchise fee on Rogue Valley Sewer Services ("RVS").

13.20.010 Terms.

All franchises, privileges or permits granted by the city to private public utility corporations for the use of the public highways, streets or alleys of the city shall be limited to a term not longer than ten years from the date the same are granted.

(Ord. 149 §1, 1959)

13.20.020 Privilege tax imposed.

There is levied on every privately owned public utility operating for the period of thirty days within the city, without a franchise, privilege or permit from the city, and actually using the highways, streets or alleys of the city, for other than travel upon the highways, streets or alleys a privilege tax for the use of those public highways, streets or alleys in the amount of five percent of the gross revenues of the utility concurrently earned within the boundaries of the city.

(Ord. 149 §2, 1959)

13.20.030 Franchise fee on Rogue Valley Sewer Services ("RVS").

A.    Franchise Fee Imposed. The city imposes and levies an annual franchise fee in an amount equal to five percent of the annual gross revenue of RVS as defined herein. Such payment shall be in addition to taxes or fees, if any, owed to the city by RVS or that are imposed by law.

B.    Definition of "Gross Revenue". For purposes of this ordinance, "gross revenue" means any revenue, as determined in accordance with generally accepted accounting principles, received by RVS from the operation of its business within the city limits of the city of Phoenix; provided, however, that such phrase shall not include:

1.    Any taxes, fee or assessment of general applicability collected by RVS from its customers for pass-through to a government agency;

2.    Unrecovered bad debt;

3.    Credits, refunds and deposits paid to subscribers; and

4.    Any exclusions available under applicable state law; and

5.    Franchise fees collected from subscribers.

C.    Expiration of Franchise Fee. The obligation of RVS to pay the franchise fee under this ordinance shall expire twenty years after the adoption of this ordinance, unless renewed by the city.

D.    Payment of Fee. Payment of the franchise fee due the city shall be made to the city on a monthly basis, within forty-five days of the close of each month. The payment period and the collection of the franchise fees that are to be paid to city pursuant to this ordinance shall commence on the first day of the first month following the adoption of this ordinance. In the event of a dispute regarding the amount of fees paid, the city shall be furnished a statement of a payment showing the gross revenues on which the payment was based, and the basis for calculation of the gross revenues.

E.    Accord and Satisfaction. No acceptance of any payment by the city shall be construed as a release or as an accord and satisfaction of any claim the city may have for additional sums payable as a franchise fee under this ordinance.

F.    Interest. In the event that any franchise fee payment is not made on or before the dates specified herein, RVS shall pay an interest charge, computed from such due date, at the annual rate of one percent over the prime interest rate.

(Ord. No. 928, § 1(Exh. A, §§ 1—7), 7-6-2010; Ord. No. 931, § 1(Exh. A, § 3), 9-7-2010)