(A) The grantee shall pay to the city a reasonable franchise fee for the use of public rights-of-way within city. This franchise fee shall be the greater of the following sums.
(1) The grantee shall pay to the city 3% of the grantee's gross subscriber revenues per year from regular CATV and Pay TV in the city (including all forms of consideration, such as initial lump sum payments).
(2) In the alternative, the grantee shall pay 2% of the grantee's gross revenues per year from any and all cable operations in the city (including consideration derived from auxiliary services such as Pay Cable and advertising).
(B) The grantee shall file with the city, within 90 days after the expiration of any calendar year or portion thereof during which its franchise is in force, a financial statement certified by a responsible officer of the grantee, showing in detail the gross subscriber revenues, as defined herein, of the grantee during the preceding calendar year or portion thereof. It shall be the duty of the grantee to pay the city within 15 days after the time for filing the statement, the sum prescribed above.
(C) The city shall have the right to inspect the grantee's records showing the gross subscriber revenues from which its franchise payments are computed and shall also have the right of audit and recomputation of any and all amounts paid under this chapter. No acceptance of payment shall be construed as a release or as an accord and satisfaction of any claim the city may have for further or additional sums payable under this chapter or for the performance of any other obligation hereunder; however, an accounting rendered to the city and to which no exception is made within three years after receipt by the city shall be deemed to be accurate and shall not thereafter be subject to question or made the basis of any claim by the city against the grantee.
(D) If allowed and not prohibited by Federal Communications Commission regulations, the franchise fee imposed herein shall be increased to the maximum allowable. If the fees are completely deregulated, the rates received by the city herein shall be renegotiated with the franchise herein and if no agreement is reached, then this franchise shall terminate.
(Ord. 130, passed 3-26-81) Penalty, see § 110.99