§ 6. [Fees.]

I.

Fees—Generally.

(a)

Payment to the city of franchise consideration. The grantee shall pay to the city a franchise fee of five percent of its gross annual revenues for each year of the term of the franchise. The portion of the fee set forth herein for public, educational and governmental access channels shall not be construed as a public, educational and governmental access channel fee restricted in its use to capital costs by the act. The franchise fee shall be in addition to all other fees and assessments which are required to be paid to the city and all other entities, and which do not constitute a franchise fee under the act. The franchise fee may be increased to the maximum amount permitted by law, including fees for capital costs associated with public, educational and governmental services, as the city commission deems appropriate, at an advertised public hearing after 15 days' notice by certified mail to the grantee.

(b)

Time of payment.

(1)

Monthly franchise fee payments based upon that pro rata portion of the gross annual revenues for the month for which the monthly franchise fee payment is to be made shall be paid not later than 20 days after the end of each monthly period. All amounts which are not paid when due hereunder shall bear interest at the legal rate, as defined by state law, until paid. An adjustment shall be made at the end of the fiscal period, if necessary to correct the total amount of franchise fees due. In the event it is not possible to calculate each monthly franchise fee payment within the required time for payment, grantee shall estimate, using its best efforts, the monthly payment and make said payment no later than 20 days after the end of each monthly period. Grantee shall certify the correctness of each monthly payment or make the appropriate adjustments no later than 90 days after the end of each month.

(2)

Acceptance of any franchise fee payment shall not be construed as an accord that the amount paid is, in fact, the correct amount, nor shall acceptance of payment be construed as a release or waiver of any claim the city may have for further or additional sums. All amounts paid shall be subject to an annual audit and recomputation by the city. For this purpose, all financial records relating to gross annual revenues, whether derived directly or indirectly, of the grantee for the designated service area shall be open for review and inspection by the city upon reasonable notice to the grantee. In addition, if such recomputation results in additional revenues to be paid to the city, such amount shall bear interest at the legal rate, as defined by state law, from the due date until paid unless the calculation of the amount paid in error is the fault of the city.

(3)

Nothing in this section 6(I) shall limit the grantee's liability to pay other applicable local, state or federal taxes, fees, charges or assessments.

II.

Franchise fee shall mean the charge based on the gross annual revenue of the grantee levied pursuant to this ordinance. It shall not include:

(1)

Any tax, fee or assessment of general applicability;

(2)

Fees for capital costs associated with public, educational or governmental access facilities and equipment; or

(3)

Any other fees or charges not based solely on the gross revenue of the grantee.

III.

Gross annual revenues means all revenues derived directly or indirectly by the grantee, its affiliates, subsidiaries, parent, and any person in which the grantee has a financial interest, from or in direct or indirect connection with the operation of a cable system pursuant to this ordinance, including but not limited to, basic subscriber service monthly fees, pay cable fees, the distribution of any cable-related service or other service over a cable system, installation and reconnection fees, wiring fees, leased channel fees, converter rentals and sales, advertising revenues, revenue derived from the sale of products advertised or promoted on a cable system to the extent that such revenue represents payment, in whole or in part, for the use of a channel on a cable system, and revenue derived from the sale of signal to other program packagers, including but not limited to satellite master antenna system (SMATV) operator. "Gross annual revenues" shall include but shall not be limited to, all amounts billed rather than only those amounts actually collected. Gross annual revenues shall not include any taxes on services furnished by the grantee herein imposed directly upon any subscriber or user by the state or other governmental unit and collected by the grantee on behalf of other governmental units.