§ 25.17. Franchise Fee.

Pursuant to the laws of the State of Florida, beginning October 1, 2001, counties and municipalities are no longer permitted to impose a franchise fee on cable services. However, in the future, should the laws of the State of Florida with respect to such matter be changed by the Legislature or be held invalid or unconstitutional by a court of competent jurisdiction, then the City, to the extent permitted by law at such future time, shall require the Grantee to collect and pay a franchise fee, file such reports and maintain books and records as set forth in the following subsections:

A.

The Grantee, in consideration of the privilege granted under the Franchise for the operation of a Cable Television System within the Public Ways of the City, and the expense to the City of regulation and administration arising therefrom, shall pay quarterly to the City five percent (5%) of the Gross Revenues derived in such period from the operation of the Cable Television System to provide Cable Service or, if the maximum amount permitted by law is greater than 5% of the Gross Revenues, then an amount determined by Council, in its sole discretion, up to the maximum amount permitted by law. Such payment will be considered timely if received by the Treasury Bureau of the City within thirty (30) days from the end of the previous quarter. If the Grantees' quarterly franchise fees exceed $10,000, all payments shall be made to the City by Electronic Fund Transfer via the ACH system, or other means as may be approved by the City Treasurer on a case by case basis.

B.

The Grantee shall file with the City, within thirty (30) days after the expiration of each of the Grantee's fiscal quarters, a financial statement clearly showing the Gross Revenues of the Grantee during the preceding quarter, and shall simultaneously tender payment of the quarterly portion of the franchise fee. The Grantee shall file, within one hundred twenty (120) days following the conclusion of the Grantee's fiscal year, an annual certified audit, prepared and reported by a Certified Public Accountant acceptable to the City, clearly showing the yearly total Gross Revenues in accordance with Generally Accepted Accounting Principles as required herein; such annual report and audit shall be paid for by the Grantee.

C.

The City shall have the right, consistent with the provision of Section 25.22.D., to inspect during normal business hours the Grantee's income records, the right of audit and the right to the recomputation of any amounts determined to be payable under this ordinance. The Grantee shall maintain its books and records within a forty-five mile radius of the City of Orlando City Hall, or provide these books and records to the City at City Hall within thirty (30) days of the City's written request. If books and records are not provided to the City at City Hall within thirty (30) days, the City shall conduct the inspection and audit at Grantee's place of business and Grantee shall bear all costs of said audit. Any additional amount due the City as a result of the audit, including interest at the rate set forth in Section 25.17.F., 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.

D.

If the Grantee directly bills Subscribers for amounts to be paid to leased access programmers for the provision of services on the System, then such amounts shall be considered Gross Revenues and the Grantee shall deduct the same percentage from such amounts as the then-applicable franchise fee percentage pursuant to Section 25.17.A. and include such deducted amounts in its payment made to the City pursuant to Section 25.17.A. and include such payments in its reports pursuant to Section 25.17.B.

E.

The Grantee shall ensure, through contract or other arrangement, that any Person other than the Grantee who collects from Subscribers of Cable Service amounts that would constitute Gross Revenues if received directly by the Grantee is required to remit to the City quarterly a percentage of such amounts collected which is equal to the then-applicable franchise fee. Such contract or arrangement must also require the Person to submit reports which meets the requirements of Section 25.17.B. and must entitle the City to enforce the fee and reporting requirements directly against the Person.

F.

In the event that any franchise fee payment is not made on or before the applicable dates heretofore specified, interest shall be charged from such due date at the maximum rate allowed by law or one and one-half percent (1½%) per month, whichever is less. For recomputed or audited amounts, interest thereon shall be calculated, at the rate described in the preceding sentence, from the date the payment that is the subject of the recomputation or audit was originally due the City or for such lesser period of time as may be required by law.

(Ord. of 1-7-1985, Doc. #19125; Ord. of 9-23-1996, Doc. #29666; Ord. of 8-13-2001, § 4.3, Doc. #34000)