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cable systems that use the rights-of--way. <br />9. The City and its citizens are entitled to a fair return on their investment in the <br />public right-of--way. <br />10. The compensation required by this ordinance for use of the rights-of--way is <br />authorized by state statute and allowed by federal statute. It compensates the City and its <br />citizens for: <br />* accelerated deterioration of streets; <br />* the use of apublicly-funded asset by private commercial enterprises; <br />* increased complexity of the City's public works projects resulting from the <br />presence of telecommunications facilities in the right-of--way; <br />* inconvenience to the public from occupation of the streets by construction crews <br />and equipment; and <br />* aesthetic damage to the rights-of--way. <br />11. The provisions in this ordinance that authorize the City to accept in-kind <br />services in lieu of fees: <br />* provide for benefits to the City and its citizens equivalent to the compensation for <br />which it substitutes; <br />* are not mandatory on any provider or the City; <br />* wiA have no effect on competition; <br />• * include adequate procedural safeguards to protect the interests of the city and of <br />competitors. <br />12. Wireless communication services and technology are expanding rapidly and <br />are competing with wireline telecommunications operators. The City has legitimate <br />interests in monitoring the expansion of the wireless communication industry and its effects <br />on the local community. <br />13. The registration fee of 2% for the privilege of conducting a <br />telecommunications business in the City is a reasonable charge for the City's investment <br />in developing and implementing telecommunications policies and programs that will protect <br />and advance its citizens' health, safety and welfare. <br />14. The City encourages entry of new telecommunications providers into the local <br />market and promotes competition among providers. The total amount of the fees imposed <br />on telecommunications providers by this ordinance will not exceed similar charges imposed <br />by many other comparable local jurisdictions. <br />15. Revenues from the fees imposed by this ordinance will be placed in a <br />segregated account and will not be used to replace property tax revenue. <br />Exhibit 1 - 2 <br />