The township finds that the streets and public
rights-of-way of the county, state and township together, with township
services such as police, fire, etc. to be used by a franchisee for
the operation of a cable television system, are valuable public property
acquired and maintained by the county, state and township at great
expense to the taxpayers. The township further finds that the grant
of a franchise to use streets and public rights-of-way is a valuable
property right without which a franchisee would be required to invest
substantial capital.
A.Â
The township shall be paid a franchise fee in an amount
of 5% of its gross annual revenues.
B.Â
The franchisee fee is in addition to all other taxes
and payments of general applicability that the franchisee may be required
to pay under any federal, state or local law and to any other tax,
fee or assessment imposed by utilities and cable operators for use
of their services, facilities or equipment.
C.Â
Payment of the franchisee fee shall not be considered
in the nature of a tax.
D.Â
No acceptance of any payment by the township shall
be construed as a release or an accord and satisfaction of any claim
the township may have for further or additional sums payable as a
franchise fee under this chapter or for the performance of any other
objection of the franchisee.
E.Â
In the event that any franchise fee payment or recomputation
amount is not made on or before the date specified herein, the franchisee
shall pay additional compensation and interest charges computed from
such due date, at an annual rate equal to the commercial prime interest
rate of the township's primary depository bank during the period such
unpaid amount is owed.
F.Â
The franchise fee and any other costs assessed by
the township against a franchisee shall be paid quarterly to the township
and shall commence as of the effective date of the franchise. The
township shall be furnished at the time of each payment with a statement
certified by the franchisee's chief financial officer or certified
public accountant reflecting the total amount of quarterly gross revenues
for the payment period. Quarterly payments shall be made to the township
no later than 45 days following the end of each calendar quarter.
Quarter computation dates are the last days of the months of March,
June, September and December. An annual statement of gross revenues
shall be furnished to the township by an independent, certified public
accountant. The franchisee shall provide an annual complete audit
statement for each calendar year within 90 days from the end of that
calendar year, which shall include a statement (computer run or otherwise)
of the subscriber connection history (including disconnects) for the
prior year.
