§ 19-182. Payment of costs incurred in franchise negotiations.

(a)

Bond. All entities seeking a franchise from the city shall remit with the franchise application a bond in the amount of fifty thousand dollars ($50,000.00) to the city. All costs incurred by the city during the course of the negotiation of any franchise agreement shall be assessed against this bond.

(b)

Accounting of costs. The city shall mail to the franchisee, by certified mail, return receipt requested, an accounting of all costs charged against the bond, within thirty (30) days after adoption of the franchise ordinance. Such accounting will itemize all costs incurred by the city, including but not limited to city staff expenses, including overtime, expert consulting fees, legal fees, and related expenses. The uncharged balance of the bond will be returned to the franchisee with this accounting statement. In addition, the applicant for a franchise shall pay all costs of an election, if one is required, and costs of publication as may be required by the charter or other ordinance of the city.

(c)

Protests. If the franchisee disputes the reasonableness of the charges, it may seek review of the assessment by filing a protest with the city council within thirty (30) days of the mailing of the accounting statement. If such a protest is filed, the city council shall set a hearing date. The franchisee shall be notified of this hearing date by certified mail, return receipt requested. The hearing shall be for the purpose of hearing protests as to the reasonableness of the expenses incurred. At this hearing, the franchisee may present evidence regarding the reasonableness of the charges. The franchisee shall bear the burden of proof. The city manager or his designee may respond to any allegations of unreasonableness. During the hearing, evidence may be received in the form of documents, exhibits and witnesses. The city council shall not be bound by the state rules of evidence. The hearing shall be open to the public. The city council may approve the assessment or make modifications based upon the evidence presented. Any action of the city council is final.

(d)

Challenges to validity of section. Any entity challenging the validity, legality or constitutionality of this chapter, if unsuccessful, will reimburse the city for all costs incurred, including attorneys' fees, in such litigation.

(Ord. No. 1-1988, §§ 1—3, 1-26-88, eff. 2-8-88)