§ 11-2.14. Franchise Payments and Obligations.

No new franchise shall be granted without reserving to the City just and adequate compensation. As part of the consideration for granting of each franchise, the grantee shall agree to pay the purchase price, if any, for said franchise as set forth in the franchise and to make any franchise payments fixed by the Council, and the grantee shall also agree to perform all covenants and agreements set out in said franchise to be performed by the grantee.

The Council shall have the right to recognize that extensions of service, betterment of services, surrendering of existing franchises or parts thereof, settling litigation between the grantee and the City, or the performance by grantee of franchise obligations, may be considerations (other than the franchise payment) of benefit to the City and its inhabitants, and in determining the amount of adequate consideration for the franchise or the amount of any franchise payments to be paid by grantee, the Council shall have the right to give weight to such factors.

Where the Council has fixed a percentage of gross receipts to be paid for the exercise of grantee's franchise, and where the operations of the grantee extend beyond the territorial boundaries of the City, the Council shall have the right to allocate such percentage payments so that such grantee shall pay only for its operations, for which a franchise is required, within the City.

The Council may likewise in the case of communication companies collecting tolls for both local and out of city business, interurban transportation companies and other companies as to which practical difficulties may arise as to the segregation between local and other tolls, fares or charges, provide for an allocation as between such local and other tolls, fares, or charges. In franchises covering operations as to which the requirement of payment of a percentage of gross receipts is not practical, the Council shall fix a basis for computing the franchise payments to be paid by grantee which will provide an equivalent sum.

(Ord. 1048-N.S., amended by Ord. 769-C.S., effective 2-23-66.)