A. Each cable system grantee shall pay the City a franchise fee in an amount equal to five percent (5%) of gross revenues (including franchise fees collected) derived by the grantee or its cable operator from the operation of the cable system to provide cable services, or such percentage amount as provided by law.
1. Each bill remitted to subscribers shall specifically indicate the amount of the franchise fee charged pursuant to this Section.
B. Except as a franchise may otherwise specifically provide, where a grantee sells cable services and non-cable services as bundled services, for purposes of franchise fee calculations the cable services will be presumed to generate the same revenues as would have been generated had the subscriber purchased cable services only.
C. Each person required by this Chapter to remit a City tax or other in lieu fee shall file a return with the City Treasurer on forms approved by the City Treasurer on or before the due date. The City Treasurer is authorized to require such further information as he or she deems necessary to properly determine if the tax here imposed is being levied and collected in accordance with this Subchapter.
D. To prevent evasion of franchise fees, City tax, or in lieu fees, revenues of affiliates derived from the operation of the cable system to provide cable service will be treated as the revenue of the operator; but nothing herein shall be read to permit the City to charge a fee on affiliate revenues where the revenues were also included in the calculation of the revenues of the grantee.
E. Persons who provide cable services or other communications services to subscribers for a fee via a cable system and whose revenues are not included in the franchise fees specified above may be charged a fee by the City equal to five percent (5%) of the gross revenues of such person derived from the provision of such other service over the cable system, unless prohibited by state or federal law.
F. The fact that a fee is paid based on revenues derived from one type of service provided over a cable system, does not excuse an operator from its duty to pay fees and taxes imposed by the City on other types of services provided over that facility. As an example, and not as a limitation of the foregoing, a cable operator who pays a franchise fee on revenues derived from the provision of cable services must pay the fees imposed upon non-cable service providers to the extent that it provides such services.
G. General rules for payment of fees.
1. Unless otherwise specified in a franchise agreement, franchise fees and in lieu fees shall be paid to the City and delivered to the City Treasurer quarterly, and not later than thirty (30) calendar days after the end of each calendar quarter.
2. Each payment shall be accompanied by a statement showing the manner in which the fee was calculated.
3. No acceptance by the City of any fee shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of such payment be construed as a release of any claim the City may have for additional sums payable.
4. The franchise fee or in lieu fee payment is not a payment in lieu of any tax, fee or other assessment except as specifically provided in this Chapter, or as required by the Municipal Code or other applicable law.
5. Within ninety (90) calendar days following the end of the calendar year, each person required to pay a fee based upon gross revenues shall submit a statement, attested to by a certified public accountant or the chief financial officer of such person, setting forth gross revenues of the cable system, by category, and describing what revenues were included and what revenues, if any, were excluded in the fee calculation, and any adjustments made to gross revenues.
6. If payments are delinquent, in addition to paying any applicable penalties or damages, the person owing the fee shall pay a fifteen percent (15%) penalty and interest on the amount owed at the rate of one and one-half percent (1½%) per month. In addition where the underpayment exceeded three percent (3%) of the amount due for the audit period, or $10,000, whichever is less, grantee shall pay the cost of any audit performed that identified the underpayment.
7. The City may, upon five (5) business days advance written notice, inspect and examine any and all books and records it deems necessary to the determination of whether fees have been accurately computed and paid. Revenue records shall be maintained for at least five (5) years.
8. Notwithstanding the foregoing, in the event a person obligated to pay a fee ceases to provide service for any reason (including as a result of a transfer), such person shall make a final payment of any amounts owed to the City within ninety (90) calendar days of the date its operations in the City cease, and shall provide a statement of gross revenues for the calendar year through the date operations ceased, which statement shall contain the information and certification required by this Section.
(Ord. No. 2001-014 § 2)