The Township finds that the streets of the county, state, and Township
to be used by the franchisee and the operation systems within the boundaries
of the franchise area or valuable public property is acquired and maintained
by the county, state, and Township at great expense to the taxpayers.
A. The grant of franchise to set streets is a valuable property
right without which the grantee would be required to invest substantial capital
and right-of-way cost and acquisitions.
B. The administration of this chapter and the franchise
imposes upon the Township additional regulatory responsibilities and expense.
The franchisee of the franchise hereunder shall pay the Township a franchise
fee in the amount designated by the franchise authority, in no event less
than 5% of its gross annual revenues, or the maximum amount permitted under
applicable federal law, state, or local law. If such maximum is greater than
5%, franchisee shall, simultaneously with the change in any federal law, increase
the franchise fee to the maximum allowed by that law.
(1) The franchise fee is in addition to other tax or payment.
This payment shall be in addition to any other tax, fee, or assessment imposed
by both utilities and telecommunications operators or their services, but
not including a tax, fee, or assessment which is unduly discriminatory against
cable operators or telecommunications operators, or payment owned to the government
or other tax jurisdictions by the franchise.
(2) Payment of the franchise fee made by grantee to the Township
shall not be considered in the nature of a tax but shall be in addition to
any and all other taxes which now or may be required hereafter by any federal,
state, or local law.
(3) Acceptance by the Township. No acceptance of any payment
by the Township shall be construed as a release or in accord and satisfaction
of any claim the Township may have for further or additional sums payable
as franchise fee under this chapter or for the performance of any other obligation
of the franchisee.
(4) Failure to make required payment. In the event any franchise
payment or recomputation amount is not made on or before the date specified
herein, grantee shall pay additional compensation and interest charged computed
from such due date, at the annual rate equal to the commercial prime interest
rates of the Township's primary depository bank during the period of such
unpaid amount as owed.
(5) Payments to be made quarterly. The franchise fee and
any other costs or damage assessed the grant franchisee shall be paid quarterly
to the Township of East Whiteland and shall commence as of the effective date
of the franchise. The Township shall be furnished at the time of said payment
with a statement certified by the franchisee chief financial officer reflecting
the total amount of quarterly gross revenues and the amount above charges
and computations in a period covered by the payment period. The annual statement
of gross revenue shall be furnished to the Township by an independent, certified
public accountant. Said 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.
Annually franchisee is to provide a complete audit statement within 90 days
from its end of fiscal year period.
(6) The Township right of inspection. The Township shall
have the right to inspect the franchisee's records and the rights to audit
and to recompute any amounts determined to be payable hereunder this chapter
for a period of four years from the date of payment period. Audits shall be
at the expense of the Township unless the audit discloses an underpayment,
in which case the costs of the audit shall be borne by the grantee. Any additional
amounts due to the Township as a result of the audit shall be paid within
30 days following the written notice to the franchisee by the Township, which
notice shall include a copy of the audit report unless written notice of disagreement
is filed by the franchise with the Township within such time period. In the
case of a dispute, the issue shall be resolved through binding arbitration
in accordance with the procedures of the American Arbitration Association.
C. The franchisee shall maintain his financial, fiscal,
or financial records in such a manner as to enable the Board to determine
the costs of assets of the franchisee which are used in providing cable promotion
and communication services within the Township.
In addition to all other rights which the Township has pursuant to law
or equity, the Board reserves the right to revoke, terminate, or cancel this
franchise, and all rights and privileges pertaining thereto, in the event
that:
A. Grantee breaches this franchise; or
B. Grantee becomes insolvent, unable or unwilling to pay
its debts, or its adjudged as bankruptcy and the grantee's creditors or trustee
in bankruptcy do not agree to fulfill as bound by the requirements of this
franchise upon request by the Township.
In the event that the Township determines that the grantee has violated
any material provisions of the franchise, or any material applicable federal,
state, or local law, the Township may make written demand on the grantee that
it remedy such violation and that continued violation may cause revocation.
If the violation, breach, failure, refusal, or neglect by grantee is due to
acts of God or other causes which result from circumstances beyond the grantee's
control. Such determination shall not unreasonably be withheld.
A. A public hearing shall be held by the Board and the grantee
shall be provided with an opportunity to be heard upon 14 days' written notice
of the grantee of the time and place of the hearing. The causes for pending
revocation and the reasons alleged to constitute such cause shall be recited
in this notice. Said notice shall affirmatively recite the cases that need
to be shown by the Township to support a revocation.
B. If notice if given and, at grantee's option, a full public
proceeding is held, the Township determines that a violation, breach, failure,
refusal, or neglect by grantee, the Township shall direct grantee to correct
or remedy the same within such reasonable additional time, in such a manner
and upon such terms and conditions as the Township may direct.
C. If, after notice is given, and, at Township's option,
a full public proceeding is held, the Township determines there was a violation,
breach, failure, refusal, or neglect, then the Township may declare, by resolution,
the franchise revoked and canceled and of no further force or effect. The
Township has the right to take ownership of cable plant and associated switching
and electronic equipment under the terms of eminent domain.
D. The issue of revocation shall automatically be placed
upon the Township Board agenda at the expiration of the time set by it for
compliance. The Township then may terminate franchise forthwith upon finding
the grantee has failed to achieve the plans or may further extend the period,
at its discretion.
E. If the Township, after notice is given and, at grantee's
option, a full public hearing is held and appeal is exhausted, declare the
franchise breached, the parties may pursue their remedies pursuant to the
franchise or any other remedies, legal or equitable.
Franchisee shall post with the Township a cash security deposit to be
used as a security fund to ensure the franchisee's faithful performance of
this chapter, the franchise agreement, and other applicable law, and compliance
with all orders, permits, and directions of the Township, and payment by the
franchisee of any claims, liens, fees, or taxes due the Township which arise
by reason of the construction, operation, or maintenance of the system. The
amount of the security fund shall be $25,000.