3-1-8: CABLE TELEVISION FRANCHISE FEE:
   A.   Definitions.
 
CABLE COMMUNICATIONS SYSTEM:
Shall carry the same meaning as "cable system" as set forth in 47 U.S.C. § 522.
CABLE SERVICE:
1.   The one-way transmission to subscribers of:
   a.   Video, audio, digital and other programming services; or
   b.   Other programming service; and
2.   Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.
 
   B.   It shall be unlawful for any Person to construct, operate or maintain a Cable Communications System in the City, unless such Person shall have first obtained and shall currently hold a valid Franchise from the City pursuant to a Franchise Agreement or is a State Franchise Holder. It shall also be unlawful for any Person to provide cable service in the City unless such Person shall have first obtained and shall currently hold a valid Franchise or is a State Franchise Holder. All Franchises granted by the City shall contain the same substantive terms and conditions.
   C.   No Franchise Agreement shall be granted unless the franchisee, as part of the franchise Agreement, agrees to pay the City a Franchise Fee in an annual amount equal to five percent (5%) of its annual Gross Revenues.
   D.   Franchisees shall make payments of the Franchise Fee to the City on a quarterly basis, making such payments no later than forty-five (45) days after the close of the respective calendar quarter.
   E.   Franchisees shall comply with any and all audit requirements imposed under the applicable Franchise Agreement.
   F.   As provided under the State Franchise Law, the City imposes a fee upon a State Franchise Holder providing cable and video services within the City in the amount of five percent (5%) of the State Franchise Holder's gross revenues from providing such services within the City.
   G.   The State Franchise Holder shall notify the City at least ten days prior to the date on which the State Franchise Holder begins to offer cable service or video service in the City.
   H.   Payment of Provider Fee. The State Franchise Holder shall be liable for and pay the service provider fee to the City. The State Franchise Holder's liability for the fee shall commence on the first day of the calendar month following thirty (30) days after receipt of the ordinance adopting this Cable Communications Franchise Code by the State Franchise Holder, which shall be sent to the State Franchise Holder by mail, postage prepaid, to the address listed on the State Franchise Holder's application notice sent to the City pursuant to State Franchise Law.
   I.   Payment Date. The State Franchise Holder shall make payments of the service provider fee to the City on a quarterly basis, making such quarterly payments no later than forty-five (45) days after the close of the respective calendar quarter. Each payment shall include a statement explaining the basis for the State Franchise Holder's calculation of the fee.
   J.   Credit for Other Payment. A Franchise holder that elects to terminate an existing Franchise Agreement pursuant to the State Franchise Law with credit for paid Franchise Fees under a Franchise Agreement with the City may deduct the amount of such credit from the service provider fee that service providers owes the City upon becoming a State Franchise Holder.
   K.   A State Franchise Holder shall comply with the same requirements imposed by the City on other cable service or video service providers that are providing such services within the City to audit the State Franchise Holder's books and records and to recalculate any amounts determined to be payable under to the City. Before conducting an audit, the City will notify the State Franchise Holder of the requirements imposed on other cable service or video service providers to submit to an audit of the service provider's books and records. (Ord. 923, 11-11-2021)