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(A) Payment. In consideration for the use of the streets and public ways of the city for the construction, operation, maintenance and reconstruction of a cable system within the city, the grantee shall pay to the grantor an annual amount equal to 5% of the grantee’s gross revenues as defined in § 114.001 of this chapter. This includes, but is not limited to, all subscriber’s payments, installation fees, converter boxes, local advertising, leased access channels and pay per view. This amount shall not include any taxes on cable service that are imposed directly or indirectly on any subscriber thereof by any governmental unit or agency and which are collected by the grantee on behalf of such governmental unit or agency.
(B) Quarterly payments. Payment due to the grantor under this section shall be made quarterly at the City Clerk’s office not later than 45 days following March 31, June 30, September 30 and December 31 of each year. Any fee not paid when due shall bear interest at a rate of 1.5% per month from the date due. Each payment shall be accompanied with a report to the city by the grantee showing the basis for the computation, specific income categories and such other relevant facts as may be required by the grantor necessary to determine the accuracy of the franchise payment and shall be in the form provided by App. B, attached to Ord. 14586 and incorporated in this chapter. The acceptance of any payment shall not be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim the grantor may have for additional sums payable by the grantee. All amounts paid shall be subject to audit and recomputation by the grantor.
(C) Limitation on actions. The period of limitation for recovery of any franchise fee payable under this section shall be ten years from the date on which payment by the grantee is due.
(D) Audit. The grantee will fully cooperate with a franchise fee audit performed by a professional firm that is chosen by the grantor. The grantor will pay for the costs associated with the audit; provided that, the grantee shall pay for the costs if the audit shows an underpayment of franchise fees in excess of 5% or more.
(E) Increases. The grantor may request an increase in franchise fees at any time during the term of the franchise equal to the maximum allowed by federal law. However, such request shall be made in writing, and the grantee will not be liable for the increase until proper notice, as defined by federal law, is given to its subscriber. Prior to making a final decision regarding an increase in franchise fees, the grantor shall conduct a public hearing and shall grant an opportunity to the grantee to discuss the proposed increase in franchise fees.
(2013 Code, § 8-5.1) (Ord. 14586, passed 4-13-1998)