§ 5.22.270. Franchise fee.

A.

For the reason that the streets of the city to be used by the grantee in the operation of its system within the boundaries of the city are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and that the grant to the grantee to the streets is a valuable property right without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions, the grantee shall pay to the city an amount equal to five percent of the grantee's gross revenue from the operation of the grantee within the confines of the city or contract area. If the statutory five percent limitation on franchise fee is raised or the federal statute deletes the franchise fee limitation entirely, then the franchise fee may be subject to renegotiation. Thirty (30) percent of the revenue received by the city from the franchise fee will be dedicated to the public, educational, and governmental (PEG) channel, if such channel is in operation.

B.

This payment shall be in addition to any other tax, fee or assessment of general applicability or payment owed to the city by the grantee.

C.

The franchise fee and any other costs or penalties assessed shall be payable quarterly on a calendar year basis to the city and the grantee shall file a complete and accurate verified statement of all gross revenues as previously defined within forty-five (45) days after the quarter as established between the city and the grantee.

D.

The grantee shall not be liable for the collection of franchisee fees from existing customers in a newly annexed area until notified in writing by the city of the annexation. Upon receiving such notice, the grantee shall begin collection as soon as possible, but in no case later than sixty (60) days.

E.

The city shall have the right to inspect the grantee's income records and the right to audit and to recompute any amounts determined to be payable under this chapter. Any additional amount due to the city as a result of the audit shall be paid within thirty (30) days following written notice to the grantee by the city which notice shall include a copy of the audit report.

F.

If any franchise payment or recomputed amount, cost or penalty, is not made on or before the applicable dated heretofore specified, interest shall be charged daily from such date at the legal maximum rate charged by the US Internal Revenue Service for late tax payments and the grantee shall reimburse the city for any additional expenses and costs incurred by the city by reason of the delinquent payments(s).

(Ord. 1848, 2002; Ord. 1727, 1999; Ord. 1669 (part), 1997)

(Ord. No. 2095, 1-25-2010)