To the fullest extent permitted by federal, state and local law, the city reserves the right to regulate and may regulate a franchisee’s rates for cable service and other communication services and late fees for payments of bills.
(Ord. 205 § 3, 2001)
4.20.111.2.1. 
A franchisee, for information purposes, and for the city to ensure nondiscrimination, shall provide the city with a complete schedule of all current basic service and enhanced service rates and charges for cable services, including premium services TV and pay-per-view rates and charges, as of January 1st of every year.
4.20.111.2.2. 
Thirty (30) days prior to any price changes, the franchisee shall give notice to all affected subscribers of any pricing changes or additional charges, excluding temporary marketing and sales discounts or offers and pay-per-view events, which notice shall clearly state all price increases and/or decreases, provided that such pricing changes or additional charges are within the control of the franchisee. In those cases where such pricing changes or additional charges are not within the control of the franchisee, the franchisee shall provide such notice as is reasonable under the circumstances.
4.20.111.2.3. 
Forty-five (45) days before any price changes or additional charges are to take effect, a franchisee shall provide the city with a copy of the proposed notification for subscribers. The city may review the text of the notification and comment upon its form and content, provided it does so within five business days following receipt from the franchisee. The final form and content of such notice shall be within the discretion of the franchisee, provided that such notice clearly and accurately identifies any such price changes or additional charges. Nothing in this section shall be construed as diminishing the city's powers to regulate a franchisee's rates for cable service or other communication services.
(Ord. 205 § 3, 2001)
The franchisee agrees that installation (i.e., connection) and service fees shall be uniform as to all city subscribers within the categories (if any) set forth in the renewal proposal.
(Ord. 205 § 3, 2001)
4.20.111.4.1. 
The franchisee shall notify the cable administrator and subscribers in writing of any change in rates at least thirty (30) days prior to the change.
4.20.111.4.2. 
Where the franchisee operates a cable system in a nearby community, the franchisee agrees to make available to the cable administrator, at any time upon the latter's demand, a schedule of its fees in other cities.
4.20.111.4.3. 
Official services purchased by the city will not be subject to a converter deposit; however, the city agrees to report and pay for missing or stolen converters utilized for official services.
(Ord. 205 § 3, 2001)
4.20.111.5.1. 
Because the streets and other city rights-of-way which are used by the franchisee in the operation of its cable system within the boundaries of the city are valuable city properties acquired and maintained by the city at great expense to taxpayers, and because the grant to the franchisee to use of said properties is a valuable property right without which the franchisee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the city will incur costs in regulating and administering a franchise, and to compensate the city for franchisee's use of the city rights-of-way in which its cable system is located, which compensation may be used by the city:
4.20.111.5.1.1. 
To regulate the construction, reconstruction, operation, maintenance, use and development of such a system on the city;
4.20.111.5.1.2. 
For the costs of regulating and administering a franchise;
4.20.111.5.1.3. 
For the development and use of access channels;
4.20.111.5.1.4. 
For fair and just compensation for the use of city rights-of-way; and
4.20.111.5.1.5. 
To the extent permitted by law, for other purposes whether or not such purposes are related to the regulation of cable systems in the city.
4.20.111.5.2. 
A franchisee shall be subject to and pay, to the extent not prohibited by applicable federal or state law, a franchise fee for the use of the property rights granted to the franchisee, i.e., the privilege of using the public rights-of-way or city property to, construct, maintain, and operate a cable system or any portion thereof, as a condition and requirement of each and every franchise. The franchise fee shall be in an amount equal to five percent, or the maximum permitted by law, of franchisee's gross revenues, as defined in the section entitled "Definitions."
(Ord. 205 § 3, 2001)
Consistent with Section 622(h) of the Cable Act, the city shall have the power to require any person, other than a cable service provider, who originates or controls the distribution of any service over the cable system and receives fees for such service, which fees are not received by or transmitted through the cable service provider, to pay the city a fee equal to five percent, or the maximum permitted by law, of the gross revenues of such person derived from the distribution of such service over the cable system, less any amounts directly paid to the cable system in compensation for the use of such cable system.
(Ord. 205 § 3, 2001)
The franchise fee assessed shall be payable quarterly to the city. The franchisee shall file a complete, accurate, and certified statement of all collected gross revenues within the city during the period for which said quarterly payment covers, and said payment shall be made to the city not later than thirty (30) days after the end of each quarter. The franchisee shall also provide annually within ninety (90) days after the end of the fiscal year a report certified by a certified public accountant, who may be an employee of franchisee, verifying all collected gross revenues.
(Ord. 205 § 3, 2001)
4.20.111.8.1. 
The city shall have the right to inspect and examine all of a franchisee's books of account, income records and other records and documents relevant to an accurate determination of the total amount of gross revenues derived by the franchisee from the provision of cable services on the city, including such income and subscriber records as may be necessary to determine the accuracy of the franchisee's pro rata allocation of revenue to the franchise.
4.20.111.8.2. 
The city shall have the right to audit and to re-compute any amounts determined to be payable under a franchise agreement; provided, however, that such audit shall commence within thirty-six (36) months following the close of each of the franchisee's fiscal years (unless subsequent information indicates fraud or improper withholding of information, in which case the thirty-six (36) month limitation shall not apply), and that the city shall not conduct such an audit more frequently than twice in one year (unless subsequent information indicates fraud or improper withholding of information). The franchisee shall make such records available the city within ten (10) days of request. Such records shall be available for inspection by the city upon ten days request during normal business hours and shall be retained by the franchisee for a period of three years.
4.20.111.8.3. 
The city will bear the cost of any such audit; provided, however, that if such audit indicates a franchise fee underpayment of five percent or more of the amount due, franchisee shall assume all costs of such audit and pay such costs at such time as any proceedings contesting the city's audit are completed.
4.20.111.8.4. 
Any additional amounts due to the city as a result of the audit shall automatically be paid within thirty (30) days following the completion of the audit. The franchisee shall be given a copy of the audit report.
4.20.111.8.5. 
The franchisee has the right to appeal the results of any audit conducted by the city; nevertheless, the franchisee shall remain liable and shall pay the city the amount owed according to the audit. Upon final determination of the audit appeal, if the franchisee has overpaid franchise fees, then the city will remit such overpayment within thirty (30) days of completion of the determination of overpayment.
(Ord. 205 § 3, 2001)
No acceptance by the city of any payment from franchisee 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 as a franchise fee under the ordinance codified in this title or for the performance of any other obligation of the franchisee. Acceptance of an accord and satisfaction or release shall not occur unless or until the city shall agree to such accord and satisfaction or release in a separate writing, signed by the city. There shall be an accord and satisfaction with respect to any payment not subject to audit within thirty-six (36) months following the close of the fiscal year to which such payment relates, unless there is subsequent evidence that franchisee has engaged in fraud or has improperly withheld relevant records which relate to such payments.
(Ord. 205 § 3, 2001)
In the event that the franchisee does not make any franchise payment(s) or re-computed amount(s) on or before the applicable date(s) heretofore specified, then a late penalty shall accrue at a rate of one and one-half percent per month on the unpaid amount(s) from the date on which it was due. If the franchisee has not made a franchise payment or re-computed amount on or before the date that such payment or amount is otherwise due in accordance with the provisions of the ordinance codified in this title or the franchisee’s franchise agreement and such payment or re-computed amount is not made within five days after receipt of written notice from the city, franchisee shall pay an additional late penalty. Such a late penalty shall be an amount equal to ten (10) percent of the total unpaid amount including accrued interest.
(Ord. 205 § 3, 2001)
4.20.111.11.1. 
This section is applicable to any licensed but unfranchised cable service provider, and to any cable service provider who has had its franchise ruled unconstitutional, unenforceable, or invalid. This section also is applicable to a franchised cable service provider who has had its franchise fees ruled unconstitutional, unenforceable, or invalid.
4.20.111.11.2. 
Where not specifically prohibited by federal or state law, and as an alternative to the imposition of a franchise fee as set forth in the ordinance codified in this title, the franchising authority may impose, extract and collect a charge from an affected cable service provider for the use by such provider of the streets, rights-of-way, easements, and right ways of the city.
4.20.111.11.3. 
Such an alternative user charge shall be based on the value of the rights-of-way being used by the affected cable service provider as determined by the city. However, in no event, shall the alternative user charge exceed five percent, or the maximum permitted by law, of the affected cable service provider's gross revenue for the reporting period.
4.20.111.11.4. 
An alternative user charge is adopted in order to receive fair compensation for the affected cable service provider's use of the public streets and public ways if such compensation cannot be obtained by imposing a flat percentage fee on such cable service provider's annual gross revenue. However, an affected cable service provider may agree to an alternative charge that is based on a flat percentage of gross revenue, as long as that charge does not exceed five percent, or the maximum permitted by law, of an affected cable service provider's annual gross revenue.
4.20.111.11.5. 
It is expressly understood that a franchise fee and an alternative user charge will not be imposed on the same cable service provider at the same time, for the same period.
4.20.111.11.6. 
An affected cable service provider shall at no time be charged or obligated to pay an alternative user charge that exceeds five percent, or the maximum permitted by law, of such provider's gross revenue (as defined by the ordinance codified in this title) for any particular reporting period. In the event that the alternative user charge does exceed five percent, or the maximum permitted by law, of gross revenue, then such alternative user charge shall be reduced to reflect an amount not greater than the five percent, or other legal cap.
(Ord. 205 § 3, 2001)
The alternative user charge assessed shall be payable quarterly to the city. The cable service provider shall file a complete, accurate and certified statement of gross revenues within the city during the period for which said quarterly payment covers, and said payment shall be made to the city not later than thirty (30) days after the end of each quarter. The cable service provider shall also provide annually within ninety (90) days after the end of the fiscal year a report certified by a certified public accountant, who may be an employee of the cable service provider, verifying gross revenues.
(Ord. 205 § 3, 2001)
4.20.111.13.1. 
No person, or cable service provider shall be permitted to construct, operate or maintain a cable system which requires the laying or positioning or use of cable (coaxial, fiber or functional equivalent) across the rights-of-way of the city, without having first obtained a cable service franchise, unless such person or cable service provider is exempted under state law, or not required under the cable act.
4.20.111.13.2. 
Consistent with the cable act, no franchise shall be required for the city to operate as cable service provider.
(Ord. 205 § 3, 2001)