(a) Payment to Village.
(1) The Operator shall pay to the Village an annual amount equal to the percentage of Gross Revenues as provided in the Franchise Agreement (“Village Franchise Fees”). The foregoing payment shall be partial compensation for use of Streets and other Public Property and for supervision of the Operator’s Franchise Agreement. The Village reserves the right to change the Village Franchise Fees, in its sole discretion, to any amount permitted by law upon sixty (60) days written notice to the Operator.
(2) Unless otherwise agreed to by the Village, payments due the Village under this provision shall be computed quarterly for the preceding quarter as of March 31, June 30, September 30 and December 31 of each year. Payments shall be due and payable for each quarter not later than thirty (30) days from the last day of the quarter. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be reasonably required by the Village.
(3) No acceptance of any payment shall 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 Village may have for further or additional sums payable under the provisions of this Chapter or the Operator’s Franchise Agreement. All amounts paid shall be subject to audit and recomputation by the Village.
(4) In the event any payment is not made on the due date, interest on the amount due shall accrue from such date at the lesser of:
A. The annual rate of twelve percent (12%), or
B. The maximum rate permitted by law (“Late Fees”).
(b) Franchise and Other Fees.
(1) Except for the Village Franchise Fees and Late Fees, none of the payments or contributions made by the Operator, or the Cable Services, equipment, facilities, support, resources, or other activities to be provided or performed by the Operator at the direction of the Village or otherwise pursuant to this Chapter and/or the Operator’s Franchise Agreement, or otherwise in connection with the operation, maintenance, construction, or any upgrade of the Cable System shall be considered Franchise Fees chargeable against the compensation payments to be paid to the Village by the Operator pursuant to subsection (a) above.
(2) Unless otherwise agreed to by the Village, except for the Village Franchise Fees, each of the payments or contributions made by, or the services, equipment, facilities, support, resources, or other activities to be provided by the Operator, are within the exclusions from the term “franchise fee” set forth in Section 622(g)(2) of the Cable Act (47 U.S.C. 542(g)(2)).
(3) The Village Franchise Fees and Late Fees are not deemed to be in the nature of a tax, and are in addition to any and all taxes of general applicability or other fees or charges which the Operator is required to pay to the Village or any state or federal agency or authority.
(4) The Operator shall not apply the compensation or other payments to be made to the Village pursuant to this Chapter as a deduction from, or a credit against, any Village taxes of general applicability (other than income taxes) or other Village fees or charges, each of which shall be deemed to be separate and distinct obligations of the Operator.
(5) The Operator shall not apply any federal, state, local, or any other form of taxes, governmental fees or charges as a deduction from, or credit against, any of the Village Franchise Fees or the Late Fees, each of which shall be deemed to be separate and distinct obligations of the Operator.
(Ord. 2001-109. Passed 11-13-01.)