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costs in preparation of the city's telecommunications plan, this ordinance, and the <br />implementing rules. <br />(2) Annual License Fee. As compensation for use of right-of-way, each <br />operator required to obtain a license pursuant to section 3.410 of this code shall pay, in <br />addition to the registration fee described in subsection (1) of this section, a fee in the <br />amount of 7% of the licensee's gross revenues derived from telecommunications activities <br />within the city, to compensate the City for the use of the rights-of--way. <br />(3) Private Communications System. In lieu of the fees required by <br />subsections (1) and (2), a private communications system licensee shall pay to the city a <br />fee based on a per foot rate to be established pursuant to section 2.020 of this code in an <br />amount not less than the amount needed to ensure no degradation of the right-of-way. <br />(4) Effect of Federal and State Law. To the extent that federal or state <br />law, or an existing franchise agreement, limits the amount of fees which the City may <br />impose on, or the compensation it may require from, an operator, nothing in this section <br />shall require the payment of any greater amount, unless and until the federal or state limits <br />are raised, or the franchise agreement expires or is otherwise terminated. <br />(5) Other Fees. Payment of fees required by this section shall be in <br />addition to both application fees required by this chapter, and any other fees required <br />pursuant to chapters 7, 8 or 9 of this code. <br />(6) In Lieu of Fee Payment. <br />(a) In lieu of part or all of the annual registration and license fees, <br />the city may accept in-kind services which the city manager determines have <br />a value to the city equal to or greater than the registration and license fees, <br />or the portion of those fees in lieu of which the city will accept services. If the <br />city manager agrees to the in-kind payment, the registration or license shall <br />reflect this agreement. <br />(b) Prior to the city manager agreeing to such an arrangement, the <br />operator shall provide to city, at the operator's expense, an analysis <br />prepared by an independent entity, which demonstrates that the value of the <br />in-kind service is equal to or greater than the license fee (or portion of fee) <br />to be waived. In addition, the city manager shall give at least 20 days notice <br />to the city council of the proposed arrangement. If any two city councilors <br />give the manager written objections to the proposed arrangement within the <br />20 day period, the manager shall not agree to the proposal unless the <br />council votes to approve the proposal. <br />(c) If an operator fails to provide all or a portion of the in-kind <br />service reflected in the registration or license, the operator shall be liable to <br />the city for the full amount of the annual registration and license fees <br />pursuant to subsections (1) and (2) of this section for the year or years in <br />which the in-kind service or a portion thereof is not provided. In addition, the <br />city manager may terminate the arrangement for in-kind services and amend <br />the registration or license accordingly. <br />(7) Payment of Annual Registration and License Fees. <br />Ordinance - 6 <br />