Franchise fee payments to city will be in accordance with:
(a) Every grantee shall pay to the city the same franchise fee which shall be established by the city council by resolution in an amount of up to 5% of its annual gross revenue, or as amended by the FCC from time to time;
(b) A portion of the franchise fee shall be separately designated as a community grant (“community grant”). The maximum allowable amount to be designated as a community grant is up to 1% of the total franchise fee permissible under the Cable Act. The community grant shall be payable by each grantee with its franchise fee payment. The community grant may be itemized and passed through to subscribers separate from and in the same manner as franchise fees. The city shall impose the same community grant percentage fee on all grantees or shall not impose the community grant percentage fee on any grantor;
(c) This franchise fee may be reviewed every two years by the city. In the event the franchise fee is increased, the city must give the grantee a 180-day notice to implement the new fee. In accordance with the Cable Act, the 12-month period applicable under the franchise for the computation of the franchise fee shall be a calendar year;
(d) The franchise fee and community grant payment shall be due monthly and payable within 30 days after the close of the preceding month. Each payment shall be accompanied by a brief report prepared by a representative of a grantee showing the basis for the computation, the form of which is attached hereto as Appendix C, and which may be modified upon mutual consent by a grantee and the city, provided, however, each grantee shall be required to provide the same information regardless of the form agreed to by the city. Payments shall be deposited to a city account electronically;
(e) The period of limitation for recovery of any franchise fee payable hereunder shall be three years from the date on which payment by a grantee is due;
(f) All amounts due and owing under this chapter and a franchise and not paid by the dates specified herein shall bear interest at the prime rate listed in the Wall Street Journal on the date payment was due and compounded daily and calculated daily from the date due until the date of actual payment; and
(g) The franchise fee obligation herein is a material requirement of a franchise and is considered payment by a grantee for use of rights-of-way.
(1992 Code, § 44-67) (Ord. 104-09, passed 11-16-2009)