4.20.111.5 Franchisee to pay city five percent, or maximum permitted by law, of gross annual revenue as a franchise fee.

   4.20.111.5.1.   Because the streets and other city rights-of-way which are used by the franchisee in the operation of its cable system within the boundaries of the city are valuable city properties acquired and maintained by the city at great expense to taxpayers, and because the grant to the franchisee to use of said properties is a valuable property right without which the franchisee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the city will incur costs in regulating and administering a franchise, and to compensate the city for franchisee's use of the city rights-of-way in which its cable system is located, which compensation may be used by the city:

   4.20.111.5.1.1.   To regulate the construction, reconstruction, operation, maintenance, use and development of such a system on the city;

   4.20.111.5.1.2.   For the costs of regulating and administering a franchise;

   4.20.111.5.1.3.   For the development and use of access channels;

   4.20.111.5.1.4.   For fair and just compensation for the use of city rights-of-way; and

   4.20.111.5.1.5.   To the extent permitted by law, for other purposes whether or not such purposes are related to the regulation of cable systems in the city.

   4.20.111.5.2.   A franchisee shall be subject to and pay, to the extent not prohibited by applicable federal or state law, a franchise fee for the use of the property rights granted to the franchisee, i.e., the privilege of using the public rights-of-way or city property to, construct, maintain, and operate a cable system or any portion thereof, as a condition and requirement of each and every franchise. The franchise fee shall be in an amount equal to five percent, or the maximum permitted by law, of franchisee's gross revenues, as defined in the section entitled "Definitions." (Ord. 205 § 3, 2001)