(A) Franchise fee payment. In consideration for the use of the streets and public ways of the city for the construction, operation, maintenance and reconstruction of a cable system within the city, the grantee shall pay to the grantor a franchise fee, as specified in the franchise agreement.
(B) Quarterly payments. Payment due to the grantor under the franchise agreement shall be made quarterly at the City Clerk’s office not later than 45 days following March 31, June 30, September 30 and December 31 of each year. Any fee not paid when due shall bear interest at a rate of 1-1/2% per month from the date due. Each payment shall be accompanied with a detailed report, as shown in Exhibit C, which is available for public inspection at the City Clerk’s office during regular city business hours, showing the basis for the computation, and shall include but not be limited to, a specific breakdown of the following items: basic tier service charges, expanded basic service charges, installation charges, reconnection fees, premium channel revenues, revenue from other sources such as contracted or subleased cable services, pay per view, miscellaneous revenue and other relevant facts, as may be required by the grantor, necessary to determine the accuracy of the franchise payment as specified in of this chapter. The acceptance of any payment shall not be construed as an accord that the amount paid is, in fact, the correct amount; nor shall the acceptance of payment be construed as a release of any claim the grantor may have for additional sums payable by the grantee. All amounts paid shall be subject to audit and recomputation by the grantor. The grantee shall permit the city, upon request with reasonable notice, to review at grantee’s local office its gross revenue records as may be necessary to monitor compliance with this section of this chapter.
(C) Franchise fee audit. A grantee will fully cooperate with a franchise fee audit performed by a professional firm that is chosen by the grantor. The costs associated with the audit will be paid for by the grantor, except that the grantee shall pay for the costs if the audit shows an underpayment of franchise fees in excess of 5% or more for a one-year audited period. The grantee agrees to permit the city, upon request with reasonable notice, to review at grantee’s local office its gross revenue records as may be necessary to monitor compliance with this section of this chapter.
(D) Franchise fee increases. The grantor may request an increase in franchise fees at any time during the term of the franchise, equal to the maximum percentage allowed by federal law. However, the request shall be made in writing and the grantee will not be liable for the increase until proper notice, as defined by federal law, is given to its subscriber. Prior to making a final decision regarding an increase in franchise fees, the grantor shall conduct a public hearing and shall grant an opportunity to the grantee to discuss the proposed increase in franchise fee.
(E) Limitation on franchise fee actions. The period of limitation for recovery of any franchise fee payable hereunder shall be five years from the date on which payment by a grantee is due.
(Ord. 2314, passed 1-25-2006) Penalty, see § 120.999