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2, Annual License Fee. In addition to the registration fees, licensees shall <br />pay to the City an annual license fee in the amount of 7% of the licensee's gross <br />revenues derived from telecommunications activities at service addresses within the <br />City, to compensate the City for the use of the right-of-way. In the event the fee <br />required hereunder exceeds the amount of compensation the City may require from a <br />licensee under federal or state law or an existing franchise agreement, then the annual <br />license fee for that licensee shall be established at the maximum amount permitted <br />under the applicable federal or state law or franchise agreement, until such time as the <br />laws are changed or the franchise agreement expires or is otherwise terminated. <br /> <br /> 3, Private Communications System, In lieu of the annual registration fee <br />and'a.nnual license fee, a private communications system licensee shall pay to the City <br />a fee based on a per foot rate as established by the City Manager in an amount not less <br />than required to ensure no degradation of the right-of-way, <br /> <br /> 4, Reseller, In calculating the amount of annual registration and annual <br />license fees to be paid by a reseller, the amount of compensation paid by the reseller to <br />the owner or manager of facilities in the right-of-way for the services it resells shall be <br />deducted from the reseller's gross revenues before applying the percentage rates set <br />forth in sections I and 2 above. <br /> <br /> 5, Other Fees, The fees required to be paid herein are in addition to any <br />application processing fees or other fees required by Chapters 3, 7, 8 or 9 of the <br />Eugene Code, 1971, or administrative rules issued thereunder. <br /> <br /> 6, Setoff, A registrant or licensee who provides proof that.another local <br />government jurisdiction has imposed a fee or tax on gross revenue from a specific <br />telecommunications activity that is also subject to a registration or license fee under <br />Section 3.415 of the Eugene Code, 1971 and this rule, and that the registrant or <br />licensee has paid such fee or tax to the other local government jurisdiction, may claim a <br />setoff against the fees due under Section 3.415 for the amount paid to the other <br />jurisdiction. The setoff shall be allowed unless the City Manager finds that the <br />telecommunications activity that generated the revenue subjected to the fee or tax by <br />the other local government jurisdiction had a greater presence in or connection to the <br />City of Eugene than it had in or to the other jurisdiction. <br /> <br /> 7, In Lieu of Fee Payment, An operator desiring to provide in-kind services <br />to the City in lieu of all or a portion of its registration and license fees shall provide to the <br />City, at its own expense, an analysis prepared by an independent entity that <br />demonstrates that the value of the in-kind service is equal to or greater than the amount <br />of the fees to be waived. If the City Manager agrees to accept the in-kind proposal, the <br />City Council shall be given written notice of the proposed arrangement and provided not <br />less than 20 days within which to submit their written objections thereto. If any two <br />Councilors submit written objections within the 20 day period, the City Manager shall not <br />agree to the proposal unless it is subsequently approved by a vote of the City Council. <br />If an in-kind service proposal is accepted, the registration and/or license shall reflect the <br /> <br />Administrative Order- Page 11 <br />C:~Documenlsand Settings/cedppcb~ocal Settings/Temporary Intel'net Files/OCr84/05 Telecom Rules. 2 ao (00113874),D0C <br /> <br /> <br />