As compensation for the use of valuable public rights-of-way, and to defray certain of the costs associated with cable regulation during the franchise term, the company shall pay the city five percent of the gross receipts it receives in connection with the operations of the Camden system. The company's gross receipts shall include additionally any gross receipts received by any affiliate of the company in connection with the operation of the Camden cable system (where the affiliate does not itself hold a cable franchise for Camden) if that affiliate directly or indirectly provides any cable service over the cable system, or controls or is involved directly or indirectly in the management and operation of the cable system. The franchise shall be read to prevent the company from avoiding the provisions of this section by lease, contract or other arrangement. If federal law changes to permit Camden to charge a higher fee, the city may increase the franchise fee on 90 days notice.
(B) The term gross receipts includes, but is not limited to: receipts from pay, pay-per-view and basic service subscriptions; receipts from the provision of services, facilities or equipment to subscribers; receipts from the sale of all advertising (including a per capita share of amounts paid to have advertising carried on a group or groups of systems of which Camden is a part); receipts for carriage of any service; receipts received from home shopping services; and any other compensation received, from any source and regardless of form, cash and non-cash. Any sales tax collected on behalf of any federal, state or local government or agency is not considered part of the company's gross receipts.
(C) The franchise fee payment is not a payment in lieu of any other tax, fee or assessment, and, except as federal law requires, no tax, fee or assessment of any kind shall be considered part of the franchise fee.
(D) Franchise fee payments are due and payable quarterly: May 1 for the first quarter, August 1 for the second quarter, November 1 for the third quarter, and February 1 for the fourth quarter of each calendar year. Interest shall be paid at the prime rate on any late payments and penalties may be imposed for inaccurate reporting or underpayment to the city.
(E) Acceptance of any payment shall not operate as an accord or satisfaction, or a waiver of any right under the franchise or law.
(F) Each payment shall be accompanied by a form provided by the city reporting revenues and subscriber levels by category.
(G) The city shall have the right to audit the company's books on reasonable notice.
(H) Any person which desires Camden to consider an application for transfer or assignment of the franchise to it shall compensate the city for all costs (including reasonable consultant and attorney's fees) associated with considering the application for transfer or assignment.
(Ord., passed 8-25-92; Am. Ord., passed 9-23-97)