Ordinance 3444-15 with Acceptance

4. FEE PAYMENT AND FINANCIAL CONTROLS 4.1 Fees. 4.1.1 FRANCHISE FEE. Notwithstanding the provisions of Section 13.8 of the City Charter, the parties understand that RCW 35.21.860 currently prohibits a municipal franchise fee for permission to use the right of way for telephone business purposes. Based on the representations of Grantee, it is the City's understanding that Grantee will use the right of way for telephone business purposes as defined by RCW 82.16.010. If this prohibition is removed or does not apply, Grantee agrees the City may assess a reasonable franchise fee in accordance with the City Charter, so long as local, State or federal law does not otherwise prohibit such fee. 4.1.2 UTILITY TAX. The parties further understand that RCW 35.21.870 currently limits the rate of City tax upon telephone business activities to six percent (6%) of Gross Receipts, unless a higher rate is approved by vote of the people. The parties agree, however, that nothing in this Franchise shall limit the City's power of taxation, as now or may hereafter exist and as is otherwise consistent with applicable State or federal law enacted or hereinafter enacted. Grantee stipulates that all of its business activities in the City of Everett as identified herein are taxable activities subject to the applicable six percent (6.0%) gross receipts tax, as imposed under the City's telephone business tax, adopted in Everett Municipal Code Chapter 3.28. This provision does not limit the City's power to amend Everett Municipal Code Chapter 3.28 as may be permitted by law, including increases to the tax rate. This provision is subject to the exemptions and exceptions identified in Everett Municipal Code §3.28.070. 4.1.3 PERMIT AND ADMINISTRATIVE FEES. City shall charge, and Grantee shall pay, permit fees according to the schedule of permit fees in existence at the time Grantee applies for each Right -of -Way permit provided that such fees are reasonably related to City's costs. The rate charged shall be that rate that the City in good faith determines most closely matches the work to be performed. By way of example only and not limitation, Grantee would be charged the rate for trenching where Grantee intends to install conduit by directional drilling or boring. Where the City incurs reasonable costs and expenses for which a fee is not established, including but not limited to attorneys, consultants, City Staff and City Attorney's Office, in connection with the preparation, review, approval, and enforcement of this Franchise, or review, inspection, or supervision of activities undertaken through the authority granted in this Franchise or any ordinances relating to the subject, the Grantee shall reimburse the City directly for any and all costs after receiving an invoice documenting said costs and expenses in sufficient detail to demonstrate that they were reasonably necessary to perform the aforementioned actions. The time of City employees shall be charged at their respective rate of salary, including overtime if applicable, plus benefits and overhead. Any other costs will be billed proportionately on an actual cost basis. 9 of 30