Common use of Compensation to the City Clause in Contracts

Compensation to the City. (a) Franchisee is solely responsible for the payment of all lawful franchise and permit fees in connection with Franchisee's performance under this Agreement. (b) In consideration of this Franchise Agreement, ▇▇▇▇▇▇▇▇▇▇ agrees to remit to the City a Franchise Fee of five percent (5%) of Gross Receipts as defined in K.S.A. 12-2001(c)(6), and in addition, any other Gross Receipts as defined in Wichita City Code 3.93.040 to the extent permitted by state and federal law, (together the “Franchise Fee”). (c) The franchise fee is compensation for the use of the right of way and shall in no way be deemed a tax of any kind. The franchise fee is in addition to, and not in lieu of, the City's Telecommunications Service Occupation Tax under Wichita City Code Section 3.01.020. Franchisee will receive credit regardless of whether it is an end-user in the City limits toward total franchise fee payment pursuant to Wichita City Code Section 3.93.350 for occupation tax paid. (d) In accordance with Section 3.93.310 of the Wichita City Code, each franchise fee payment shall be accompanied by a statement showing the manner in which the franchise fee was calculated. The franchise fee payment should also specify occupation tax credit as identified in Section 4(c) above. (e) The franchise fee shall be due on a quarterly basis. The first payment shall be due on the first day of the month following the date on Page 1 of this Franchise Agreement, without the City being responsible for submitting an invoice. Any franchise fee not postmarked or delivered by the due date shall accrue interest from the due date until received, at the applicable statutory interest rate, as defined in K.S.A. 16-201.