§ 4.16.05. Franchise fees.

The grantee shall pay a franchise fee which is intended to compensate the city for all costs which may be associated with administering or regulating grantee's cable system. The mount of the franchise fee shall be five percent of the grantee's annual gross subscriber receipts, as defined herein. Such fee shall be paid on an annual basis. Grantee shall be entitled to list the franchise fee as a separate line item on monthly bills.

Due to federal and local regulations requiring that grantee notify cable subscribers at least thirty (30) days prior to the effective date of any increases in monthly charges on subscriber bills, any increased franchise fee mounts which may be due to the city shall begin accruing sixty (60) days following the effective date of the ordinance from which this section is derived. If the city requires more than thirty (30) days notice to subscribers of increased rates, then any increased franchise fee amounts which may be due to the city shall begin accruing sixty (60) days after the city's required notice period.

At the city's request, the grantee shall file a report showing grantee's gross subscriber receipts for the calendar year and the amount of franchise fees due to the city. Such reports may be requested once per calendar year. The grantee shall have an obligation to maintain financial records of its gross subscriber receipts and grantee fee payments for audit purposes for a period of three years, and the city shall have the right to audit the grantee's books at the offices where such books are maintained.

( Ord. No. 99-13, § 5 )