1. Franchise Fee. The Grantee shall pay to the City a franchise fee of five percent of annual gross revenue, as defined in Section 112.02 of this chapter. 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. The franchise fee payment shall be due annually and payable within 90 days after the close of the preceding calendar year. Each payment shall be accompanied by a brief report prepared by a representative of the Grantee showing the basis for the computation. The period of limitation for recovery by the City of any franchise fee payable hereunder shall be three years from the date on which payment by the Grantee is due to the City.
2. Rates and Charges. The City may regulate rates for the provision of basic cable and equipment as expressly permitted by federal or State law.
3. Renewal of Franchise.
A. The City and the Grantee agree that any proceedings undertaken by the City that relate to the renewal of the Grantee’s franchise shall be governed by and comply with the renewal provisions of federal law.
B. In addition to the procedures set forth in the Cable Act, the City agrees to notify the Grantee of all of its assessments regarding the identity of future cable related community needs and interests, as well as the past performance of the Grantee under the then current franchise term. The City further agrees that such assessments shall be provided to the Grantee promptly so that the Grantee has adequate time to submit a proposal pursuant to the Cable Act and complete renewal of the franchise prior to expiration of its term.
C. Notwithstanding anything to the contrary set forth in this subsection, the Grantee and the City agree that at any time during the term of the then current franchise, while affording the public appropriate notice and opportunity to comment in accordance with the provisions of federal law, the City and the Grantee may agree to undertake and finalize informal negotiations regarding renewal of the then current franchise and the City may grant a renewal thereof.
D. The Grantee and the City consider the terms set forth in this subsection to be consistent with the express renewal provisions of the Cable Act.
4. Conditions of Sale. If a renewal or extension of the Grantee’s franchise is denied or the franchise is lawfully terminated, and the City either lawfully acquires ownership of the cable system or by its actions lawfully effects a transfer of ownership of the cable system to another party, any such acquisition or transfer shall be at the price determined pursuant to the provisions set forth in Section 627 of the Cable Act. The Grantee and the City agree that in the case of a final determination of a lawful revocation of the franchise, the Grantee shall be given at least 12 months to effectuate a transfer of its cable system to a qualified third party. Furthermore, the Grantee shall be authorized to continue to operate pursuant to the terms of its prior franchise during this period. If, at the end of that time, the Grantee is unsuccessful in procuring a qualified transferee or assignee of its cable system which is reasonably acceptable to the City, the Grantee and the City may avail themselves of any rights they may have pursuant to federal or State law. It is further agreed that the Grantee’s continued operation of the cable system during the 12-month period shall not be deemed to be a waiver—or an extinguishment of—any rights of either the City or the Grantee.
5. Transfer of Franchise. The Grantee’s right, title, or interest in the franchise shall not be sold, transferred, assigned, or otherwise encumbered, other than to an entity controlling, controlled by, or under common control with the Grantee, without prior written notice to the City. No such notice shall be required, however, for a transfer in trust, by mortgage, by other hypothecation, or by assignment of any rights, title, or interest of the Grantee in the franchise or cable system in order to secure indebtedness.