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Resolution 2009-33

(A resolution providing for an increase in the franchise fee for Embarq/Century Tel per Ordinance 1639)


 WHEREAS, pursuant to Ordinance 1639, the City granted a franchise for telecommunications services to United Telephone Company, now known as Embarq (and soon to be known as Century Tel);

 WHEREAS, Section 12 of Ordinance 1639 provides for a franchise fee of 4% of gross revenue;

 WHEREAS, pursuant to Section 14 of Ordinance 1639, the City Council may increase the franchise fee by resolution of the Council;

 WHEREAS, the City Council passed Ordinance 1970 providing for, among other things, a privilege tax of 7% of gross revenue on telecommunications service providers such as Embarq;

WHEREAS, the City Council determines that the franchise fee should be increased from 4% to 7% of gross revenue in accordance with Ordinance 1970;

 WHEREAS, in order to provide Embarq at least 90 days notice of the change in the franchise fee, the effective date of the new franchise fee should be January 1, 2010.
 
 NOW, THEREFORE, BE IT RESOLVED by the Hood River City Council that:

The franchise fee to be paid by Embarq, or its successor in interest, under the franchise agreement pursuant to Ordinance 1639 is changed to 7% of gross revenues as defined in ORS 221.515.  The effective date of the new franchise fee is January 1, 2010.
 
Approved by the Hood River City Council the 28th day of September, 2009, to take effect immediately.

       ___________________________
       Arthur Babitz, Mayor
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Jennifer McKenzie, City Recorder