§ 16-39. Franchise fee.

In further consideration of the granting of this franchise to the franchisee, the franchisee shall pay to the city annually, no later than February 20, an amount equal to three percent of gross of all cable subscriber revenues, including, but not limited to, subscriber revenues, advertising, pay cable, and leased channel revenues of the franchisee derived from cable television operations within the city limits during the previous 12 months. Provided further, if the percentage rate is increased by the FCC or its successor, then the fee authorized hereunder may be amended by the city council to the highest fee authorized by the FCC or its successor to regulatory matters, effective as of the date such higher fee is approved by such regulatory agency. In the event the city council shall have the right to inspect the records of the franchisee at any reasonable time for the purpose of ascertaining accurately what the actual gross receipts of the franchisee may have been for cable television service for the past month, months, year and/or for the present year. The city administrator will approve forms on which this report will be made. Such forms are hereby made part of this article. The franchisee will be subject to the same deficiency determination, interest and penalties set forth in the excise tax on alcoholic beverages (section 4-73) for failure to file the required form and pay the fee, or for not paying or for underpayment of the fee due.

(Code 1985, § 4-422; Ord. of 4-6-1981)