§ 5.5-27. Franchise fee.

(a)

For the reason that the streets and public rights-of-way of the city to be used by a grantee in the operation of its cable system within the boundaries of the City of Cumberland are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and that the grant of a franchise to a grantee is a valuable right without which a grantee would be required to invest substantial capital in right-of-way costs and acquisitions, the grantee shall pay to the city an amount equal to five (5) percent of the grantee's gross revenue, unless otherwise provided for in the franchise agreement. If the statutory five (5) percent limitation on franchise fees is raised or the federal statute deletes the franchise fee limitation entirely, then the franchise fee may be subject to renegotiation.

(b)

This payment shall be in addition to any other tax, fee or assessment of general applicability or payment owed to the city by a grantee.

(c)

The franchise fee and any other costs or penalties assessed shall be payable quarterly on a calendar-year basis to the city and a grantee shall file a complete and accurate verified statement of all gross revenues, and shall pay the franchise fee, within forty-five (45) days after the quarter as established between the city and the grantee.

(d)

The city shall have the right, no more frequently than biannually, to inspect a grantee's income records and the right to audit and to recompute any amounts determined to be payable under this chapter upon thirty (30) days prior notice to the grantee. Any additional amount due to the city as a result of the audit shall be paid within thirty (30) days following written notice to the grantee by the city, which notice shall include a copy of the audit report. Unless required by law, the city shall not disclose to any third party (other than its financial advisors in their capacity as such) any financial information or other information that would reasonably be regarded as confidential that the city gains access to in connection with the provisions of this subsection. A grantee's income records, when made available to the city, shall not include subscriber specific information.

(e)

If any franchise fee payment or recomputed amount, cost or penalty, is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such date at the legal maximum rate charged by the United States Internal Revenue Service for late tax payments and a grantee shall reimburse the city for any reasonable additional expenses and costs incurred by the city by reason of the delinquent payment(s).

(Ord. No. 3525, § 1, 5-17-05)