Description
The Franchise Agreement regulates APS' usage of City owned rights-of-way for power transmission to Goodyear citizens. The Agreement details each party's rights and regulations for the use of the public right-of-way and provides that the utility will pay a "franchise fee" for the use of that right-of-way.
Key Terms:
APS will pay a franchise fee of 2% of all revenues.
APS will pay all other applicable municipal taxes, including transactional privilege taxes, which APS has not paid under the previous agreement.
The franchise would be non-exclusive. Should Grantee agree to pay a higher franchise fee to another Arizona municipality during the 25-year term, the City would be entitled to collect that higher rate.
APS will be required to obtain appropriate permits before construction projects.
APS will be required to comply with City practices and ordinances regarding construction projects and street cuts.
The Agreement details cost allocation for relocation projects of APS facilities in the rights-of-way.
Grantee would defend and indemnify the City against any liability arising out of its operations under the franchise.
The City shall have the right to utilize APS’ for wires and appurtenances for municipal fire alarm, police telephone or other municipal communications services.