Chapter 5.33 FRANCHISE - CABLE COMMUNICATIONS


Section 5.33.110 Franchise fee and taxes.

    A.    The payment of franchise fees for the CATV system governed by 47 U.S.C. ' 542 and IP/TV service.  Franchisee  shall  pay  a  franchise  fee  equal  to  5%  of  its  annual Gross  Revenue  received  by Franchisee from the provision of CATV or IPTV services over the cable system within the City.  Said  franchise  fee shall be paid quarterly on or before March 1st, June 1st, September 1st, and December  1st  of  each  year  for  the calendar  quarter  immediately  preceding  the  date  of  such payment.  For any twelve-month period, the franchise fees paid by Franchisee with respect to the IPTV  service shall not  exceed 5 percent of Franchisee’s gross  revenues derived  in  such period from the  provision  of  IPTV Services.   The City  shall have  access  to  the Franchisee’s records, upon written request, to verify the amount due to the City.
    B.  If  the  FCC,  Congress  or  other  governmental  entity  with  authority  changes the maximum franchise fee allowed, then the City and Franchisee agree to establish the franchise fee to be paid to the City from that point in time forward as the maximum franchise fee allowable by
law, unless otherwise negotiated and agreed to by both the Franchisee and the City in writing.  A new Franchise Agreement may be negotiated and entered into between the City and Franchisee or an addendum to this franchise agreement may be agreed upon by the City and Franchisee relative
to any new or updated terms and/or franchise fee calculations if necessary or required.
     C.  Verification. All books and records showing the revenues of the operator shall be open at all reasonable times to the inspection of the City or agent appointed by the City.
     D.  Additional  compensation.  If  any  payment  amount  is  not made  on  or  before the dates specified, the operator shall pay as additional compensation:
          1.  An interest charge of 10% per annum.
          2.  The  acceptance  of  any  payment  by  the  City may  not  be  construed  as  a release or as an accord and satisfaction of any claim the City may have for further and additional sums payable as a utility tax under this ordinance or for the performance of any other obligation of the operator.   
    E.  Pass through fees. Any operator "pass through" or itemization of the utility tax on subscriber's bills shall be in accordance with applicable law.

 
 


(Ord. 2009-22, Add, 10/30/2009)