During the term of the franchise, a franchised operator shall pay to the City a sum of money equal to 5% of the annual gross revenues accruing from cable services rendered within the City. To the extent consistent with applicable law, payments of compensation made by a franchised cable operator to the City pursuant to the provisions of this chapter, shall be considered in addition to, and exclusive of, any and all authorized taxes, business license fees, other fees, other levies or assessments presently in effect or subsequently adopted. The franchise fee is for the privilege of using the streets, rights-of-way, easements, and public ways and other facilities of the City in the operation of the cable system, and for the City's supervision during the term of the franchise. If the FCC, Congress or other governmental entity with authority over cable service allows a franchising authority to increase the franchise fee beyond the above percentage, then the City shall have the authority to increase the franchise fee to any new maximum stated rate allowable. It is intended that the franchise fees will promote the health, safety and welfare of the citizens of the City. Accordingly, the franchise fee shall be deposited into the general revenues of the City, unless otherwise specified.
(A) Within 45 days after the end of each reporting quarter, a franchised operator shall file with the City a detailed report clearly showing the gross revenues received by the franchised operator for operations within the City during the proceeding reporting quarter, and certified by an authorized representative of the franchised operator attesting to the accuracy of the revenue figures. The report shall be in a form mutually agreed upon by the City and the cable operator. The report shall include revenue from whatever source, directly or indirectly derived from the operation of the cable system, to provide cable service. Revenue may be reported in the aggregate for the total franchise service area by general service type or source. This report shall specifically identify in detail the sources and amounts of all gross revenues received by a franchisee during the quarter for which payment is made. It is specifically understood that the right of audit and recomputation of any, and all, amounts paid shall be accorded to the City for five years following payment.
(B) In the event that payment is not made within 60 days after the end of a reporting quarter, then the cable operator may be declared in default of the franchise, and the City may take action against the cable operator as authorized in this chapter.
(C) The acceptance of any payment shall not be construed as a release of, or an accord or satisfaction of, any claim that the City might have for further or additional sums payable under the terms of this chapter, or for any other performance or obligation of a franchised operator.
(D) To the extent consistent with applicable law, payments of compensation made by a franchised operator to the City pursuant to this chapter shall be considered in addition to, and exclusive of, any and all authorized taxes, business license fees, or other levies or assessments presently in effect or later adopted.
(E) Franchise fee under this chapter shall include all items included as a franchise fee under Federal law and does not include any item excluded by Federal law.
(F) If at any time, the concept of franchise fees are deemed illegal, or unconstitutional, the franchising authority may, if permitted by law, impose an alternative user charge, or excise fee, at a rate not in excess of those fees designated franchise fees and described herein, on the franchised cable system operator.
(Ord. 13-08, passed 6-3-13)
