§ 6.26.240. Compensation to the metropolitan government.

A.

General Compensation. For the reason that the public streets, alleys and rights-of-way to be used by grantee in the operation of its system within the boundaries of the metropolitan government are valuable, public properties, acquired and maintained by the metropolitan government at great expense to its taxpayers, and that the grant to grantee of the use of said public streets, alleys and rights-of-way is a valuable property right, without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions, the grantee agrees to pay to the metropolitan government as general compensation during each year of the franchise ordinance codified in this chapter, an amount equal to five percent of gross revenues for each quarter of a compensation year. Grantee shall forward by check or money order an amount equal to the quarterly payment by the fifteenth day of the calendar month immediately following the close of the calendar quarter for which the payment is calculated. Any necessary prorations shall be made.

B.

Recalculation At End of Compensation Year. At the end of each compensation year, grantee shall recalculate the total general compensation actually due. If additional amounts are due the metropolitan government by grantee, said amounts shall be paid by the fifteenth day of the second month of the compensation year following the compensation year during which such amounts were originally due. If amounts are found to be due the grantee by the metropolitan government, said amounts shall be credited by the fifteenth day of the second month of the compensation year, during which such amount were originally due. Any necessary prorations shall be made. The compensation set forth in this section shall be exclusive of and in addition to all special assessments and taxes of whatever nature, including, but not limited to, ad valorem taxes. In the event any quarterly payment is made after noon on the date due, grantee shall pay a late payment penalty of the greater of: (1) one hundred dollars or (2) simple interest at ten percent annual percentage rate of the total amount past due. As used in this section, gross revenues shall mean all revenues (exclusive of sales tax) collected by grantee from operation of grantee's system installed pursuant to the franchise ordinance codified in this chapter, and any related services provided by the grantee within Metropolitan Nashville and Davidson County, including, but not limited to:

1.

All telecommunications service revenues charged on a flat-rate basis;

2.

All telecommunications services charged on a usage-sensitive or mileage basis;

3.

All revenues from installation service charges;

4.

All revenues from connection or disconnection fees;

5.

All revenues from penalties or charges to customers for checks returned from banks, net of bank costs paid;

6.

All revenues from local services;

7.

All revenues from authorized rental of conduit space;

8.

All revenues from charges for access to local and long distance networks;

9.

All revenues from authorized rentals of any portion of grantee's system, including plant, facilities, or capacity leased to others;

10.

All other revenues collected from grantee's business pursued with the metropolitan government, excluding revenues received pursuant to Section 6.26.230(B) and, excluding third party billing arrangements not related to grantee's business;

11.

Recoveries of bad debts previously written off and revenues from the sale or assignment of bad debts. Unrecovered bad debts charged off after diligent, unsuccessful efforts to collect are excludable from gross revenues; and

12.

All revenues received from any subcontractor and/or subsidiary operating telecommunications services under or pursuant to grantee's franchise.

Gross revenues shall not include revenues from long distance operations other than revenues from local access connections.

Payment of money under this section shall not in any way limit or inhibit any of the privileges or rights of the metropolitan government, whether under the franchise ordinance codified in this chapter or otherwise.

Any transactions which have the effect of circumventing payment of required franchise fees and/or evasion of payment of franchise fees by noncollection or nonreporting of gross revenues, bartering, or any other means which evade the actual collection of revenues for business pursued by grantee are prohibited.

(Amdt. 1(16), (17), (18), (19), (20), (21) to Ord. 94-1103, 7/19/94; Ord. 94-1103 § 24, 1994)