Any franchise agreement entered into between the village and the company shall contain specific provisions which are consistent with the following requirements.
(A) The franchise term shall be of reasonable duration, not in excess of 15 years.
(B) The franchise fee charged by the village shall be reasonable and not in excess of 3% of the franchisee’s annual gross subscriber revenues from cable television operations in the community, including all forms of consideration as the initial lump-sum payments.
(C) GROSS SUBSCRIBER REVENUES shall be defined as including any and all compensation or receipts derived by franchisee from installation, disconnection and re-installation charges and periodic service charges in connection with the carriage of broadcast signals and Federal Communications Commission mandated nonbroadcast services within the village, but shall not include any refunds or credits made to subscribers or any taxes imposed upon the services furnished by grantee.
(D) The subscription rate structure shall be fair and equitable to all classes of service without unreasonable discrimination. Before any subscription rate structure shall become effective (either the initial rate structure or any subsequent amendment thereto), it shall first be approved by Council after conducting appropriate public proceedings.
(E) At the end of the fifth and the tenth years of any existing franchise term, the Council and its franchisee shall review as a matter of course, the existing rate structure and either approve its continuance or make the appropriate adjustments as may appear necessary to arriving at a figure which is reasonable and fair to all parties. No adjustments in rate structure shall be made without specific action of Council. The foregoing five-year review periods shall not be construed to prevent the franchisee from petitioning the Council for a change of subscription rates, upon a showing of cause.
(Ord. 742-80, passed 12-9-1980)