(A) (1) The company, in consideration of the terms of the non-exclusive franchise, shall pay to the county a sum equal to the cost of the advertising and granting of the non-exclusive franchise upon proper billing by the county to the company, plus a sum equal to 3% of the gross income received by the company for the distribution of basic service television signals on the CATV system within the county excluding the present or future franchised areas of Livermore, Calhoun, Island and Sacramento. No other tax, levy or charge of any kind shall be imposed upon the company by the city.
(2) It is understood by and between the parties that such revenues as may be obtained from advertising on the CATV system and for other services, supplemental to the presentation of free over-the-air television signals, shall not be included in said gross. It is further provided that, if the FCC should impose a percentage varying from the rate set out above, then the percent above shall be changed to comply with FCC standards.
(3) The above fee shall be payable one-half thereof in semi-annual payments. Said semi-annual payment dates shall be June 30 and December 31 of each year, and each semi-annual payment shall be made within 30 days thereafter.
(4) The company shall keep complete records of accounts showing dates and payments received.
(B) In the event that the non-exclusive franchise granted to the company should be terminated or forfeited prior to the end of the basic 20-year term, the company shall immediately submit to the county a statement showing the basic service gross receipts of the company for the time elapsed since the last period for which the company has paid to the county the required percentage of such gross annual receipts, and the company shall pay to the county not later than 30 days following the termination of the franchise a like percentage of such basic service gross receipts.
(C) In the event that any payment is not made on or before the applicable date fixed in divisions (A) and (B) above, interest on such payments shall apply from such date at the yearly rate of 10%.
(D) The county shall have the right to inspect the company records showing its gross receipts for basic service from which its franchise payments are computed, and the right of audit and recomputation of any and all amounts paid under the non-exclusive franchise shall be always accorded to the county. No acceptance of any payment by the county shall be construed as a release of or an accord or satisfaction of any claim the county might have for further or additional sums payable under the terms of this chapter or for any other performance or obligation of the company hereunder.
(Ord. 87-450.1, passed 2-10-1987)