§ 5-10.06. Franchises: Payments.

(a)

In consideration of the granting and exercise of a franchise to use the City rights-of-way for the operation of a cable television system, any grantee may be required to pay to the City, during the life of the franchise, any or all of the following:

(1)

The amount equal to five (5%) percent of its gross annual cable service receipts as defined in subsection 5-10.01(t).

(2)

A percentage of other receipts as authorized by the Federal Communications Commission if any and levied by the City.

(b)

The foregoing percentage payments shall be made in lawful money of the United States on or before April 1 of each year for operations during the preceding calendar year or as otherwise required by the Council. In the event that any franchise payment or recomputed amount is not made within ten (10) days of the dates specified herein, grantee shall pay as additional compensation:

(1)

An interest charge, computed from such due date, at the annual rate equal to the commercial prime interest rate in effect upon the due date;

(2)

A sum of money equal to five (5%) percent of the amount due in order to defray those additional administrative expenses and costs incurred by the City by reason of delinquent payment.

(c)

The city shall have the right to inspect the grantee's revenue records under the franchise and the right of audit and recomputation of any and all amounts payable pursuant to the provisions of this chapter. The cost of such audit shall be borne by the grantee when such audit results in increasing, by more than five (5%) percent, the grantee's annual payment to the City.

(d)

No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable pursuant to the provisions of this chapter or for the performance of any other obligation imposed by the provisions of this chapter.

(§ 2, Ord. 719, eff. January 4, 1990, as amended by § 2, Ord. 987, eff. January 4, 2001)