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HomeMy WebLinkAboutMC-667 , . . .' . . . \ ORDINANCE NO. MC-667 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE AMENDING MUNICIPAL CODE SECTION 14.08.110 TO INCREASE FRANCHISE FEE TO FIVE PERCENT AND TO PROVIDE FOR THE VERIFICATION OF FRANCHISE FEES BY THE GRANTOR, THE CITY'S AUTHORITY TO AUDIT, INTEREST ON DELINQUENT PAYMENTS, PASS THROUGH OF FRANCHISE FEES TO SUBSCRIBERS, AND MEANS TO CHANGE FRANCHISE FEES. THE MAYOR AND THE COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Municipal Code Section 14.08.110, is hereby amended to read as follows: "14.08.110 Franchise Payments A. In consideration of the granting and exercise of a franchise to use the streets, as defined in subsection I of Section 14.08.010, for the construction and operation of a cable television system, any grantee shall pay to the City during the life of the franchise, an annual franchise fee equivalent to five percent (5%) of the grantee's gross revenues from operations wi thin the City for the period, inc].uding, but not limited to, basic service revenues, non-basic service revenues, advertising revenues, telemarketing revenues, lease revenues, and all other one-way and interactive service revenues generated in any manner by the grantee. B. The percentage payments shall be made in the manner, and at times directed in the franchise or by resolution of the Council. C. Not less than annually, the grantee shall provide the City with an unqualified certification of an independent certified public accountant certifying the accuracy of the franchise fee paid within the preceding twelve (12) months. DCR:mg June 28, 1989 1 tlC~67 9 10 11 12 13 14 15 16 . .. \ - 1 2 Said certification shall be prepared in accordance with 3 generally accepted accounting standards. 4 D. Not more than once each year during the term of the 5 franchise, the City or its representative shall have the 6 right to conduct an independent audit of grantee's records to 7 determine if proper payments have been made to the City, and if 8 such audit indicates a franchise fee underpayment of two percent (2%) or more, the grantee shall bear all reasonable costs of such audit. Each grantee shall make available for inspection by authorized representative of the City, its books, accounts, and all other financial records at reasonable times and upon reasonable advance notice for the purpose of permitting exercise of the authorities conferred by this Section. E. No acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City 17 may have for further or additional sums payable under this 18 19 20 21 22 23 24 25 26 27 28 chapter or for the performance of any other obligation under this Chapter. F. In the event that any franchise payment or recomputed amount is not made on or before the dates specified in the franchise agreements, grantee shall pay as additional compensation an interest charge, computed from such due date, at the annual rate equal to the commercial prime interest rate in effect upon the due date. G. Any grantee "pass through" or itemization of franchise fee costs on subscribers' bills shall be in accordance with DCR:mg June 28, 1989 2 /'1~-66 7 , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 federal law. . \ - Any grantee shall pass through to subscribers the amount of any decrease in a franchise fee. H. The City reserves the right to change its fees if after a public hearing it determines good cause exists and such action does not conflict with federal laws, FCC rules and regulations or the laws of the state of California." I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a __I~g~~~~_____ meeting thereof, held on the 17th day of July Council Members Estrada, Reilly, Flores, Maudsley, AYES: , 1989, by the following vote, to wit: Minor, Pope-Ludlam, Miller NAYS: None ABSENT: None 19 20 21 22 23 24 25 26 27 28 of II/I , 1989. Approved as form and legal content: JAMES F. PENMAN City Attorney By: ~~~~ ./ DCR:mg June 28, 1989 3