(A) Franchise fee.
(1) Throughout the term of the franchise, commencing on the effective date of the ordinance, grantee shall pay the city an aggregate amount equal to five percent of the grantee's gross receipts from operations within Columbia Heights from whatever source whether direct or indirect through subsidiaries, affiliates, persons or entities in which the grantee has a financial interest or with which the grantee has a contractual relationship for the sharing of receipts.
(2) The city and the grantee by acceptance of the franchise, agree that the franchise fee will not interfere with the effectuation of federal regulatory goals in the field of cable television and that the fee is appropriate in light of the city's planned regulatory program and the system contemplated by the ordinance. The grantee shall support and assist the city in demonstrating to the FCC that the franchise is consistent with such federal standards and is otherwise appropriate, as indicated.
(3) The grantee, upon acceptance of the franchise agrees that the franchise fee shall continue to be paid regardless of whether the franchise fee standards of the FCC are lowered. If the FCC increases the range of franchise fees that may be permitted under its standards or exercises no jurisdiction with respect to such fees, the city may elect to renegotiate the franchise fee without regard to the time limitation contained therein, but in no event shall the renegotiated fee be less than the 5% referred to in subdivision (A)(1) of this section. Failure of grantee to renegotiate in good faith pursuant to this provision shall be grounds for termination of the franchise at the option of the city.
(B) Payment of franchise fee.
(1) Within 30 days after the end of each calendar quarter, the grantee shall report for the preceding calendar quarter in such detail as the city may require its gross receipts from all system services from whatever sources and shall remit therewith all amounts due under division (A) of this section.
(2) In the event any payment is not made on or before the applicable date fixed in subdivision (B)(1), interest thereon shall apply from its due date at the rate of one and one half percent per month.
(3) All payments due the city shall be made to the Treasurer.
(C) Operation following termination or cancellation. In the event the grantee continues the operation of any part or all of the system beyond the cancellation or expiration of this franchise, it shall pay to the city the compensation set forth in this franchise at the rate in effect at the time of such cancellation or expiration, and in the manner set forth in this franchise, together with all taxes it would have been required to pay had its operation been duly authorized.
(D) Taxes and assessments. Payments of compensation made by the grantee to the city pursuant to the provisions of the franchise shall not be considered in the nature of a tax or assessment but shall be in addition to any and all taxes and assessments which are now or hereafter required to be paid.
('77 Code, § 11.112) (Am. Ord. 982, passed 11-9-81; Am. Ord. 1535, passed 9-8-08)