(A) Franchise fee.
(1) Grantee shall pay to franchising authority a franchise fee equal to 2% of gross revenues from the provision of cable services within the franchise area received by grantee on a quarterly basis; provided however, that grantee may credit against any such payments:
(a) Any tax, fee, or assessment of any kind imposed by franchising authority or other governmental entity on a cable operator, or subscriber, or both, solely because of their status as such;
(b) Any tax, fee, or assessment of general applicability which is unduly discriminatory against cable operators or subscribers (including any such tax, fee, or assessment imposed, both on utilities and cable operators and their services); and
(c) Any other special tax, assessment, or fee, such as a business, occupation, and entertainment tax. For the purpose of this section, the three-month period applicable under the franchise for the computation of the franchise fee shall be a calendar quarter, unless otherwise agreed to in writing by franchising authority and grantee. The franchise fee payment shall be due and payable 60 days after the close of the preceding calendar quarter. Each payment shall be accompanied by a letter from a representative of grantee showing the basis for the computation.
(2) The period of limitation for recovery of any franchise fee payable hereunder shall be three years from the date on which payment by grantee is due. Unless, within three years from and after such payment due date, franchising authority initiates a lawsuit for recovery of franchise fees in a court of competent jurisdiction, recovery shall be barred, and franchising authority shall be stopped from asserting any claims whatsoever against grantee relating to alleged franchise fee deficiencies.
(4.1)
(B) Rates and charges. Franchising authority may not regulate the rates for the provision of cable service or other service, including, but not limited to, ancillary charges relating thereto, except as expressly provided herein and except as may be authorized pursuant to federal and state law. From time to time, and at any time, grantee has the right to modify its rates and charges, at its discretion and without consent of franchising authority, including, but not limited to, the implementation of additional charges and rates; provided however, that grantee shall give notice to franchising authority of any such modifications or additional charges 30 days prior to the effective date thereof.
(4.2)
(C) Conditions of sale.
(1) Except to the extent expressly required by federal or state law, if a renewal or extension of the franchise is denied or the franchise is lawfully terminated, and franchising authority either lawfully acquires ownership of the cable system or, by its actions, lawfully effects a transfer of ownership of the cable system to another party, any such acquisition or transfer shall be at a fair market value, determined on the basis of the cable system valued as a going concern.
(2) Grantee and franchising authority agree that, in the case of a lawful revocation of the franchise, at grantee’s request, which shall be made in its sole discretion, grantee shall be given a reasonable opportunity to effectuate a transfer of its cable system to a qualified third party. Franchising authority further agrees that, during such a period of time, it shall authorize grantee to continue to operate pursuant to the terms of its prior franchise; however, in no event shall such authorization exceed a period of time greater than six months from the effective date of such revocation. If, at the end of that time, grantee is unsuccessful in procuring a qualified transferee or assignee of its cable system which is reasonably acceptable to franchising authority, grantee and franchising authority may avail themselves of any rights they may have pursuant to federal or state law; it being further agreed that grantee’s continued operation of its cable system during the six-month period shall not be deemed to be a waiver, nor an extinguishment of, any rights of either franchising authority or grantee. Notwithstanding anything to the contrary set forth in subsection (D) below, neither franchising authority nor grantee shall be required to violate federal or state law.
(4.3)
(D) Transfer of franchise. All of the rights and privileges and all of the obligations, duties, and liabilities created by this franchise shall pass to and be binding upon the successors of the franchising authority and the successors and assigns of grantee; and the same shall not be assigned or transferred without the written approval of the City Council, which approval shall not be unreasonably withheld; provided however, that this section shall not prevent the assignment or hypothecation of the franchise by grantee as security for debt without such approval; and provided further, that transfers or assignments of this franchise between any parent and subsidiary corporation or between entities of which at least 50% of the beneficial ownership is held by the same person, persons, or entities which are controlled or managed by the same person, persons, or entities, shall be permitted without the prior approval of the franchising authority (“intracompany transfers”). Grantee shall notify franchising authority in writing within 30 days of the closing of such intracompany transfer.
(4.4)
(Prior Code, Appendix C, Article III, § 4) (Ord. 2010-28, passed 9-7-2010)