§ 26-5. Franchise payments.

(a)

The grantee shall pay to the city, on or before March 31 of each year, a three percent franchise fee based on gross subscriber revenues received for cable television operations in the city for the preceding calendar year. No other fee, charge or consideration shall be imposed, except that the governing body may impose a fee in excess of three percent but no more than five percent of gross subscriber revenues received from cable television operations in the city, provided that the FCC certifies, after appropriate showing made by the grantee, that a franchise fee in excess of three percent but not greater than five percent will not interfere with the effectuation of federal regulatory goals in the field of cable television and after appropriate showings made by the governing body that the franchise fee in excess of three percent but no greater than five percent is appropriate in light of the city's planned regulatory program for cable television. A grantee shall file with the city within 30 days after the expiration of each calendar year during the period the franchise shall be in force a financial statement showing in detail the gross annual subscriber revenues as defined in this chapter of the grantee during the preceding year. It shall be the duty of a grantee to pay to the city at the time of filing such statement the sum prescribed in this section. A grantee shall also file within 90 days following the conclusion of each fiscal year of a grantee an annual report prepared and audited by an independent certified public accountant acceptable to the city, showing the yearly total gross subscriber revenues and payments to the city and any further relevant financial information in regard to the grantee as may be required by the administrative officer and governing body.

(b)

If the franchise should be terminated or forfeited prior to the end of the basic 15-year term, a grantee shall immediately submit to the city a financial statement prepared as before required showing the gross subscriber revenues of a grantee for the time elapsed since the last period for which a grantee has paid to the city the required percentage of gross annual subscriber revenues, and a grantee shall pay to the city not later than 30 days following the termination of the franchise a like percentage of such revenues and any other such sums legally due and owing to the city.

(c)

If any payment is not made on or before the applicable date fixed in subsections (a) and (b) of this section, interest on such payments shall apply from such date at the yearly rate of eight percent.

(d)

The city shall have the right to inspect a grantee's records showing the gross receipts from which its franchise payments are computed and shall have the right of audit and recomputation of any and all amounts paid under the franchise. No acceptance of any payment by the city shall be construed as a release of or an accord or satisfaction of any claim the city might have for further or additional sums payable under the terms of this chapter or for any other performances or obligation of grantee pursuant to this chapter.

(e)

Payments of compensation made by a grantee to the city pursuant to the provisions of this chapter shall not be considered in the nature of a tax but shall be in addition to any and all taxes which are now or hereafter required to be paid by any law of the United States, the state or the city.

(Code 1976, § 8-5)