Chapter 18.08
FEES AND COMPENSATION
Sections:
18.08.010 Payment of fees and compensation to the city.
18.08.020 Application and review fee.
18.08.030 Right-of-way construction permit fee.
18.08.040 Compensation for use of rights-of-way.
18.08.050 Compensation for city property occupancy and use, and facility leases.
18.08.060 General rules for payment of fees and compensation.
18.08.070 Regulatory fees and compensation not a tax.
18.08.010 Payment of fees and compensation to the city.
A. It is the purpose of this chapter to ensure that the city, as far as possible, is fairly compensated for the rights granted and receives fair and reasonable value for use of public rights-of-way and city property over which it exercises control, or which is held in public trust; and that the city is compensated for expenses arising from the use of those public rights-of-way and city property.
B. The fact that a fee is paid on one type of service provided over a telecommunications system does not excuse a carrier, operator, or provider from its duty to pay fees on other services provided over that facility as required by this title.
C. The fees, charges and fines provided for in this title and any compensation charged and paid for the public ways provided for herein, whether fiduciary or in-kind, are separate from, and additional to, any and all federal, state, local, and city taxes as may be levied, imposed or due from a telecommunications provider, its customers or subscribers or on account of the lease, sale, delivery or transmission of telecommunications services. (Ord. 2959 § 1, 1999).
18.08.020 Application and review fee.
A. Any applicant for a right-of-way license or facilities lease, or a renewal, transfer, or modification thereof, pursuant to this title shall make an initial deposit with the city, of one-half of one percent of the estimated construction cost of the applicant’s proposed facilities, as certified by the applicant, up to a maximum of $5,000. The minimum deposit shall be $250.00.
B. The deposit shall be made as part of the application filed pursuant to this title and shall be used to reimburse the city for its actual administrative expenses incurred in receiving, reviewing, processing, considering, denying, or approving the issuance, renewal, transfer, or modification of a right-of-way license, or facilities lease. The city may, as costs are incurred, draw upon the deposit to recover its administrative costs, including, but not limited to, the reasonable cost of outside consultants retained by the city related to the city’s consideration and processing of a license or facilities lease. The director, in consultation with the director of finance, may establish an alternative billing methodology calculated to recover the city’s costs while minimizing administrative expenses.
C. The director, at any time, may require the applicant to deposit additional sums if it appears to the director that the initial deposit or subsequent deposits will be exhausted prior to the final action by the city relating to the consideration by the city of an application for issuance, renewal, transfer, or modification of a right-of-way license or facilities lease. The applicant will not be entitled to further consideration by the city of its requested action until such time as the additional deposit required by the director has been deposited with the city.
D. In the event the amount of the deposit of an applicant is in excess of the amount of the administrative expenses of the city related to the action requested, then the applicant shall be entitled to a return of any such excess amount at such time as the final action by the city is completed.
E. An applicant whose right-of-way license or facilities lease application has been withdrawn, abandoned or denied shall, within 60 days of its application and review fee payment, be refunded the balance of its deposit under this section, less:
1. Fifty dollars nonrefundable filing charge; and
2. All other costs and expenses incurred by the city in connection with the application. (Ord. 2959 § 1, 1999).
18.08.030 Right-of-way construction permit fee.
A. Prior to actual construction, every applicant for a right-of-way license shall obtain a right-of-way construction permit from the city, and pay the appropriate permit fees pursuant to the city’s street excavations ordinance, Chapter 12.16 MVMC.
B. All grantees shall, within 30 days after written demand, reimburse the city for any and all costs the city reasonably incurs in response to any emergency involving the grantee’s telecommunications facilities.
C. All grantees shall, within 30 days after written demand, reimburse the city for the grantee’s proportionate share of all expenses incurred by the city in planning, constructing, installing, repairing or altering any city facility as a result of the construction or the presence in the public right-of-way of the grantee’s telecommunications facilities. (Ord. 2959 § 1, 1999).
18.08.040 Compensation for use of rights-of-way.
Each authorization granted pursuant to this chapter is subject to the city’s right, which is expressly reserved, to annually fix a fair and reasonable compensation to be paid for the right to occupy and use the public ways of the city granted under such authorization; provided, that nothing in this chapter shall prohibit the city and a grantee from agreeing to the compensation to be paid; provided further, that the compensation required from any telecommunications provider or carrier engaged in the “telephone business,” as defined in RCW 82.04.065 shall be consistent with RCW 35.21.860. (Ord. 2959 § 1, 1999).
18.08.050 Compensation for city property occupancy and use, and facility leases.
A. Each facilities lease granted under this chapter shall be subject to the city’s right, which is expressly reserved, to fix a fair and reasonable compensation to be paid for the rights granted to the lessee; provided, that nothing in this title shall prohibit the city and a lessee from agreeing to the compensation to be paid.
B. The compensation for a facilities lease shall be based on the area of the property leased and its fair market value as determined by city policy.
C. All facilities lease payments shall be submitted to the city finance director with a reference to the city’s ordinance or resolution number authorizing the execution of the lease or renewal, together with a clear and obvious notation substantially in the following form: facilities lease payment for the period: day/month/year through day/month/year.
D. It is the intent of the city that no person to which a facilities lease has been granted shall hold over after the expiration of the facilities lease term without the explicit approval of the city. To this end, the director of finance shall not accept any lease payments for any period or term that is beyond that period or term that has been authorized by the city council; provided, that this provision shall not be construed as a limit to the city council’s authority to designate any person to authorize the execution of any lease or leases. (Ord. 2959 § 1, 1999).
18.08.060 General rules for payment of fees and compensation.
A. Subject to the provisions of MVMC 18.08.050, compensation for facilities leases shall be payable in advance of the effective date of the lease and on or before January 31st of each calendar year. Any payments received after the due date shall include interest on the amount owed computed at the rate of one percent per month or at the maximum rate allowed by law, on the balance due, compounded monthly.
B. No acceptance by the city of any fees shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of such fee payment be construed as a release of any claim the city may have for additional sums due. (Ord. 2959 § 1, 1999).
18.08.070 Regulatory fees and compensation not a tax.
The regulatory fees and costs provided for in this chapter, and any compensation charged and paid for the public rights-of-way and city property provided for in Chapters 18.06 and 18.08 MVMC, are separate from, and additional to, any and all federal, state, local and city taxes as may be levied, imposed or due from carriers, operators, providers, their customers or subscribers, or on account of the lease, sale, delivery or transmission of telecommunications services. Such fees and costs shall include actual costs, together with an amount calculated to reimburse the city for overhead, and when so calculated, such costs shall be presumed to be reasonably related to the actual costs incurred by the city in managing the public rights-of-way. (Ord. 2959 § 1, 1999).