(a) Establishment of Franchise Fee.
(1) As compensation for the use of the Village's streets, public ways and places, and other facilities, and for the right to construct, operate, maintain, modify, and reconstruct a cable communications system, and for the Village's costs of maintenance, and supervision of the franchise, and for the Village's costs of establishing and conducting the regulatory activities required by virtue of the franchise, a franchisee shall pay to the Village an amount equal to five percent of a franchisee's gross revenues from all sources attributable to the operations of the franchisee within the Village. The franchise fee payment shall be in addition to any tax, permit fee, or other payment owed or service to be provided to the Village by a franchisee.
(2) For purposes of this chapter, gross revenues shall be calculated on an accrual basis.
(b) Payment of Franchise Fee.
(1) Payment of the franchise fee shall be made quarterly at the Village Treasurer's office. Each payment shall be accompanied by a financial statement in a standard form, approved by the Village Treasurer, setting forth the basis for the computation and specifically showing the gross revenues attributable to the franchise during the preceding quarter, as well as such other relevant facts as may be required by the Village.
(2) Each quarterly payment and accompanying financial statement shall be filed in the Village Treasurer's office within twenty days after the last day of the quarter for which the payment is due.
(3) A franchisee shall file, within 120 days of the close of the franchisee's fiscal year, an annual report audited by a certified public accountant, of the annual gross revenues attributable to a franchisee's cable communications operation in the Village as well as such other items of information as may be required of a franchisee. This requirement may be modified by the Village Council in appropriate circumstances. Extension of such period up to thirty additional days may be granted by the Village Council upon request by a franchisee.
(4) The Village shall have the right to inspect a franchisee's financial records, such records to be kept or made available within the Village, and the rights of audit and recomputation of any amounts that may be determined to be payable under this chapter. Any additional amount due the Village as a result of the audit shall be paid within thirty days following written notice to a franchisee by the Village, which notice shall include a copy of the audit report. The cost of the Village's audit shall be borne by a franchisee if it is properly determined that a franchisee's annual payments to the Village for the preceding year are increased thereby by more than three percent.
(5) If any franchise fee payment or recomputed amount is not made on or before the applicable due date a late payment fee of two hundred fifty dollars ($250.00) and a monthly service charge of 1.8 percent of the total unpaid amount shall be paid to the Village by the franchisee.
(6) No acceptance of any payment by the Village shall be construed as a release or as an accord and satisfaction of any claim the Village may have for further or additional sums payable as a franchise fee under this chapter or for the performance of any other obligation of a franchisee.
(c) Renegotiation of Franchise Fees. If the law permits a specified franchise fee greater than the franchise fee set forth in this chapter, the Village shall have the right to impose such greater fee upon thirty days written notice to a franchisee. If the law removes all limitations on the amount of such fee, the Village shall have the right to increase such fee to eight percent, or more if negotiated, upon thirty days written notice to a franchisee.
(d) Rates and Charges for Service.
(1) The Village Council shall be empowered to determine, fix, and regulate the charges or rates of the franchisee and from time to time to alter or change such rates.
(2) The Village shall fix and regulate rates for services which shall include, but not be limited to, the following:
A. Rates for the provision of basic service to subscribers, residential or nonresidential.
B. Rates for the provision of pay television service to subscribers.
C. Rates for the connection and installation of services, and for the downgrade or disconnection and/or reconnection of such services.
D. Rates for nonentertainment services, such as home security, utility meter reading, data transmission, use of access channels, energy management, traffic signalization and other services that may be introduced during the term of the franchise.
(3) Initial maximum rates for services of the cable communications system shall be those delineated in a franchise agreement. Initial maximum rates shall not be increased during the period specified in a franchise agreement except as otherwise permitted by law. If construction of the cable communications system is not timely completed and activated as set forth in a franchise agreement, and an extension is not granted by the Village Council, the rate guarantee shall be extended one day for each day that construction remains incomplete and unactivated beyond the specified construction and activation period.
(4) A franchisee shall have the right to conduct promotional campaigns which permit new subscriptions to the system at lesser rates than those applicable to earlier subscribers provided those promotional rates shall be equally available to all such new subscribers in the Village.
(e) Revision of Rates for Services.
(1) The Village Council, upon request of a franchisee or upon its own initiative, may establish revised rates for services. The following procedures are hereby adopted to provide for a method for the revising of rates:
A. A franchisee shall file a petition with the Village Council, which petition shall contain full and detailed information concerning the rate revisions being requested and supporting financial documentation for such rate revision.
B. The Village Council shall establish the date and time for public hearing on such rate revision request no less than thirty days from the date a written request is formally received by the Village Council in a regularly scheduled public meeting and shall render a decision on the request within thirty days following the public hearing.
C. Notice of the public hearing shall be given in accordance with the provisions of Section 820.09(o).
D. The Village Council may, at its option, employ a consultant or consultants mutually acceptable to a franchisee to aid in the analysis of the requested rate revision. Costs of such consultants shall be borne by a franchisee.
E. The Village may renegotiate other provisions of the franchise at such times as rate revisions are requested by a franchisee.
F. Nothing in this section shall be deemed to prevent the Village on its own initiative from instituting proceedings to revise rates at the Village's expense.
(2) In making its determination with regard to the setting or revision of rates, the Village Council may direct the Cablecasting Board to review and report on the following items:
A. The rate request and its supporting financial documentation;
B. Comparative rates in metropolitan Detroit and the United States;
C. Performance ratings and subscriber complaints;
D. System expansion and franchise fee payments;
E. Comparable services in metropolitan Detroit and the United States; and
F. Other items as it deems fit.
(f) Establishment of Rates and Charges Subject to Law. The provisions of subsections (d) and (e) hereof shall be applicable only if, when, and to the extent, permitted by law.
(g) Refunds to Subscribers and Programmers. If a franchisee fails to provide any material service requested by a subscriber or programmer in accordance with the standards set forth in this chapter, a franchisee shall promptly refund all deposits or advance charges paid for the service in question by the subscriber or programmer. This section shall include discontinuance of service for each twenty-four hour period, as well as lack of service after payment for initial hookup.
(Ord. 2000-59. Passed 7-10-00.)