Chapter 30.20


30.20.010    Payment of franchise fee.

30.20.020    No accord or satisfaction.

30.20.030    Late fees and interest.

30.20.040    Discounts on bundled services.

30.20.010 Payment of franchise fee.

(a)    During the term of any franchise granted pursuant to this title, the franchisee shall pay to the city for the use of the rights-of-way, as well as the maintenance, improvements, and supervision thereof, a franchise fee as specified in the franchise agreement.

(b)    Each payment shall be accompanied by supporting information, verified by an officer of the franchisee, containing a detailed, accurate statement of the franchisee’s gross revenues and the computation of the payment amount, in the form and containing the information specified in the format attached to this title as Appendix A.* (Ord. 4206 § 1 (part), 2009)

*    Code reviser’s note: Appendix A is on file in the office of the city clerk.

30.20.020 No accord or satisfaction.

No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claims the city may have for further or additional sums due or payable as a franchise fee under the franchise agreement or for the performance of any other obligation of the franchisee hereunder, or as an acknowledgement that the amount paid is the correct amount due. (Ord. 4206 § 1 (part), 2009)

30.20.030 Late fees and interest.

(a)    Any unpaid fees shall be subject to interest charges computed from the due date, at the maximum allowed rate as provided under state law until the date the city receives the payment.

(b)    If any franchise fee payment is not made on or before the required date, the franchisee shall pay a late payment charge of five percent of the amount originally due, as a cost incidental to the enforcing of the franchise, in addition to the interest charge specified in subsection (a) of this section. This charge shall be applicable only with respect to late payment of an undisputed amount. If it is later determined as a result of a dispute or audit that there was an underpayment on a payment that was timely made, the five percent charge shall not be applicable. (Ord. 4206 § 1 (part), 2009)

30.20.040 Discounts on bundled services.

If a franchisee bundles cable service with noncable service, the franchisee agrees that it will not intentionally or unlawfully allocate such revenue for the purpose of evading the franchise fee payments required under this chapter and its franchise agreement. In the event that the franchisee or any affiliate shall bundle, tie, or combine cable services (which are subject to the franchise fee) with noncable services (which are not subject to the franchise fee), so that subscribers pay a single fee for more than one class of service or receive a discount on cable services, a pro rata share of the revenue received for the bundled, tied, or combined services shall, to the extent reasonable, be allocated to gross revenues for purposes of computing the franchise fee. To the extent there are published charges and they are reasonable, the pro rata share shall be computed on the basis of the published charge for each of the bundled, tied, or combined services, when purchased separately. However, tariffed telecommunications services that cannot be discounted under state or federal law or regulations are excluded from the bundled allocation obligations in this section. (Ord. 4206 § 1 (part), 2009)