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17.01.139. Amount and payment of Franchise Fee

            (1)        During the term of the Franchise, Grantee shall pay to the City an amount equal to four percent (4%) per year of the Grantee's annual Gross Revenue received.

            (2)        The Franchise Fee shall be paid quarterly forty-five (45) days after the end of each previous calendar quarter.  Not later than the date of each payment, the Grantee shall file with the City, a written statement signed by an officer of the Grantee attesting to the accuracy, completeness, and veracity of the statement, and which identifies in detail the sources and amounts of Gross Revenues received by a Grantee during the period for which the payment is made.

            (3)        No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the City may have for further or additional sums payable under the provisions of this Section.

            (4)        The City agrees that all Franchise Fees paid to the City will be collected from Subscribers as "external costs" as such term is used in 47 C.F.R. 76.922, and will be separately stated on Subscribers' bills as permitted in 47 C.F.R. 76.985.

            (5)        Should the Cable Act ever be amended to change the maximum Franchise Fee percentage allowable by law, or should the statutory limit imposed by Section 11-16-1 et seq., Utah Code (as amended), or any successor provision, is increased above six percent (6%), the Grantee shall upon request of the City, enter into a amendment to this Franchise, increasing the Franchise Fee to the level requested by the City, but not to exceed the increased statutory limit, nor shall the Franchise Fee paid be unduly discriminatory towards the Grantee or its customers, solely because of their status as such.

            (6)        At any time during the term of this Franchise, the City may require that the Grantee change, either decrease or increase, the Franchise Fee percentage, so long as such change in Franchise Fees does not exceed the allowable amount permitted by law.  The City shall give the Grantee ninety (90) days written notice of any such change in the Franchise Fee percentage.  The City agrees that all amounts paid by the Grantee as Franchise Fees may be added to the price of Cable Services and collected from the Grantee's Subscribers as permitted in 47 C.F.R. 76.922.  In addition, all amounts paid as Franchise Fees may be separately stated on Subscribers' bills as permitted in 47 C.F.R. 76.985.  Any change in Franchise Fees will be payable by the Grantee after (a) the approval of the City, if required, to the inclusion of the change on Subscribers' bills, including any required approval pursuant to 47 C.F.R. 76.933; (b) notice to the Grantee's Subscribers of the change.


Ord. No.97-35, Recodified, 6/19/1997
Ord. No. 99-62, Enacted, 12/16/1999

Municipal Code (PDF Format)



 
 
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