§ 35.5-8. Compensation and other consideration.

(a)

As fair and reasonable compensation for the occupancy by the grantee of the public rights-of-way and other property owned by the parish (referred to jointly as "parish property") for the construction, operation, maintenance, and the reconstruction of a telecommunications system within the parish, the value of such rights and privileges granted by the franchise, the fact that the public rights-of-way contain limited and finite capacity, the administration of the franchise by the grantor, the usage and interference with the public's use of public rights-of-way, the reduction in the useful life of the public rights-of-way and other parish property and other costs and obligations undertaken by the grantor herein, the grantee shall pay to the grantor an annual compensation (also referred to herein as "franchise fee"), to be calculated as stated below:

(1)

a.

Only long distance network service systems. For telecommunications systems providing only long distance network service ("only long distance network service"), the minimum franchise fee to be paid by grantee to grantor shall be two dollars and sixty cents ($2.60) per year per each linear foot of Parish property occupied by grantee's system not to exceed an area of one (1) contiguous cubic foot per each linear foot (referred to as "the system route"). If grantee's telecommunications system will occupy more than one (1) contiguous cubic foot of Parish property on any linear foot of the system route, the annual franchise fee shall be increased by an additional two dollars and sixty cents ($2.60) for each additional contiguous cubic foot and part thereof per each such linear foot of the system route. Such rates shall be referred to herein collectively as "footage rates."

b.

If after the franchise has been granted, grantee desires to increase the amount of parish property occupied by its telecommunications system beyond either the linear foot usage or contiguous cubic foot usage, or both, initially approved under the franchise, grantee shall apply to the parish for such an increase. Upon approval of such an increase the annual franchise fee shall be increased to reflect that increase according to the footage rates stated in subsection (a)(1)a., immediately above. parish approval for an increase in the use of the public rights-of-way shall not be unreasonably withheld.

c.

All franchise fees shall be increased annually by the U.S. City Average twelve-month percentage increase, if any, in the All Urban Consumers—All Items Index (CPI-U) as compiled by the U. S. Department of Labor, Bureau of Labor Statistics (or its functional successor); no decreases shall apply. The CPI-U increase shall first be applied on January 1st following the first anniversary of the date grantee's franchise was accepted pursuant to section 35.5-13 of this article and then on each following January 1st during the term of the franchise. The CPI-U increase shall likewise apply to the cumulative franchise fee including increased usage assessments, if any, and to all CPI-U increases.

d.

Notwithstanding the foregoing, the maximum annual compensation based on footage rates for an only long distance network service telecommunications system which leases seventy-five (75) percent or more of its network footage from other parish franchise grantees shall be twenty thousand dollars ($20,000.00).

(2)

a.

All others. For all other telecommunications service providers systems other than only long distance network service systems, including but not limited to local competitive exchanges, the annual compensation, i.e., franchise fee payable to grantor, shall be five (5) percent of grantee's gross receipts from the operation of the telecommunications system within the parish or the footage rates outlined in (a)(1)a. and (a)(1)b., immediately above, for the occupation of parish property by grantee's telecommunications system, whichever is greater on an annual basis as calculated at the end of the last quarter of each year.

b.

Notwithstanding the foregoing, the maximum annual franchise fee based on footage rates for a telecommunications services system which is not an "only long distance network service" shall be twenty thousand dollars ($20,000.00). However, any year in which five (5) percent of such a grantee's gross receipts from the operation of its telecommunications system within the unincorporated areas of the Parish of Jefferson exceeds twenty thousand dollars ($20,000.00) and all CPI-U increases, the franchise fee shall be five (5) percent of such a grantee's gross receipts from the operation of its telecommunications system within the parish.

c.

The provisions in (a)(1)c., above regarding the annual CPI-U increase shall apply cumulatively to the annual fee calculated on footage rates including the franchise fee for increased footage assessments, if any, and to all CPI-U increases and to all maximum franchise fees in this chapter.

d.

For any year in which five (5) percent of grantee's gross receipts exceeds the per foot usage rates or the twenty thousand dollars ($20,000.00) maximum including CPI-U increase(s), grantee shall be credited with the amount of the per foot usage fee advance payment to grantor for that year, and grantee shall pay to grantor the amount by which five (5) percent of grantee's gross receipts exceeds the per foot usage payments by grantee for that year.

(3)

Miscellaneous general financial provisions.

a.

Payments. All payments calculated by the per foot usage rates, other than the initial annual franchise fee which is due upon grantee's acceptance of the franchise, are due and payable one (1) year in advance and shall be paid annually by January 1 of each year. Payments calculated on a gross receipts basis are payable quarterly, within thirty (30) days after the end of the preceding calendar quarter. Payments shall be by check made payable to the parish. If any payment is not received by the due date, grantee shall add to its payment a late penalty in the amount of ten (10) percent of the amount due. Additionally, interest in the amount of ten (10) percent per annum shall accrue on all payments and penalties until paid in full.

(4)

Nature of franchise fee. The compensation and other payments to be made pursuant to the franchise are in addition to any and all taxes and fees or charges which the grantee or any affiliated person shall be required to pay to the grantor or to any other governmental authority. Neither the grantee nor any affiliated person shall have or make any claim for any deduction or other credit of all or any part of the amount of compensation or other payments made pursuant to the franchise against any other fees or charges, including ad valorem taxes and/or any taxes which the grantee or any affiliated person is required to pay to the grantor.

(Ord. No. 20914, § 1, 3-15-00; Ord. No. 22754, § 1D, 5-17-06; Ord. No. 22805, § 1, 7-19-06)