Term of franchise.

Memphis Code of Ordinances § 6-28-22

in effect

Sec. 6-28-22. - Term of franchise. A. Term. Within 30 days after adoption of an ordinance granting a telecommunications franchise pursuant hereto, grantee shall execute an agreement accepting this franchise substantially in the form set out in section 6-28-35. In the event any such franchise agreement is not executed by a grantee within the 30 days, the award of the telecommunications franchise shall be null and void. Upon execution of a franchise agreement between the city and grantee, a franchise shall be in full force and effect for a term and period of 20 years, ending on the anniversary date of the franchise. B. Adjustment of compensation. Commencing July 1, 2000, and on every fifth anniversary date thereafter, the city reserves the right to establish in good faith, the amount, nature and terms of compensation (other than initial compensation) to be paid by grantee for use of the public rights-of-way during the remaining term of the franchise agreement. Any adjustment to compensation shall become effective on the first day of the next succeeding calendar quarter ("adjustment date"). The terms of any such compensation shall be reflected in a master amending ordinance affecting all then existing telecommunication franchises, including, but not limited to, those awarded pursuant to and under this chapter. Any adjustment to compensation shall be reasonable and nondiscriminatory as to other telecommunication franchises. No such amendment may take effect except by a duly enacted ordinance of the city. C. Dispute resolution. If grantee shall in good faith maintain that the amount, terms or nature of any adjustment to compensation approved by the city council pursuant to subsection B of this section is excessive or unreasonable, given the value of the privileges granted under this chapter and grantee's franchise, grantee shall, within ten days of such determination, file with the chairperson of the city council a statement identifying the reasons why the adjusted compensation is excessive or unreasonable. In the event that the city council does not reconsider and change its adjustment to compensation within 30 days of the adjustment, grantee shall have the right to make a demand for arbitration in writing to the city attorney within 30 days after such adjustment date. In such event, the city and grantee shall each appoint an arbitrator and a third arbitrator all be appointed by the arbitrators so appointed. Each arbitrator shall have at least five years of experience in the field of rights-of-way procurement. Pursuant to the then-current rules of American Arbitration Association, or any successor organization, an arbitration shall be held as expeditiously as possible and the question to be answered by the arbitrators shall be: "Is the Compensation adjusted by the City excessive or unreasonable, taking into account the value of the privileges granted to Grantee, both present and future, and the charges required by municipalities in comparable urban areas for similar rights-of-way?" Unless the majority of the arbitrators shall decide the foregoing question in the affirmative, grantee shall be bound to pay the adjusted compensation requested by the city, retroactive to the applicable adjustment date. If a majority of the arbitrators shall decide the foregoing question in the affirmative, then the city shall withdraw the proposed adjustment to compensation, and grantee shall continue paying the compensation previously in effect. The cost of arbitration shall be borne entirely by grantee, except that each party shall be responsible for their respective attorney's fees and expenses. (Code 1985, § 10-158; Ord. No. 4398, § 23, 11-19-1996)

Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT6BULIRE_CH6-28FIOPTEREFR_S6-28-22TEFRFetched: 10/28/2026