A. Because the streets of the city, to be used by the company in the operation of its system within the boundaries of the city, are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and because the grant to the company of a franchise to use the said streets is of economic value, without which the company would be required to invest substantial capital in right-of-way costs and acquisitions, the company shall pay to the city an amount equal to five percent of company’s (gross annual revenue from all sources attributable to the operations of the company within the confines of the city). This payment shall be in addition to any other tax or payment owed to the city, county or other taxing jurisdiction of the company.

In the event company bundles or combines 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 resulting in a discount on cable services, company agrees that for the purpose of calculation of the franchise fee, it shall allocate cable service revenue no less than a pro rata share of the revenue received for the bundled or combined services. The pro rata share shall be computed on the basis of the published charge for each service in the bundled or combined classes of services when purchased separately.

B. It is the intent of the city to utilize franchise fees, as the city council determines necessary, to defray the costs of local regulation of a franchise, support and development of the community access channels, and for any other purposes deemed appropriate. The city shall dedicate 1.25 percent of the total franchise fee to support the operation of BTV10.

C. If the city increases the local taxing rate or unilaterally imposes any tax, fee or other payment on the company in excess of that imposed at the date of issuance of the franchise, the company shall be authorized to modify basic subscriber rates without the express authorization of the city only to the extent necessary to generate additional revenue in order to meet this additional obligation.

D. Franchise fees shall be paid monthly not later than 45 days following the end of a given month. Neither current nor previously paid franchise fees shall be subtracted from the gross revenue amount upon which franchise fees are calculated and due for any period, unless otherwise required by applicable law. Nor shall copyright fees or other license fees paid by company be subtracted from gross revenues for purposes of calculating franchise fees.

E. In the event that any franchise payment or recomputed amount, cost or penalty, is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such rate at the annual rate of 12 percent per annum or two percent above prime lending rate as quoted by major Seattle banks, whichever is greater. [Ord. 2012-05-030; Ord. 2005-06-046; Ord. 2000-07-037; Ord. 1998-09-075; Ord. 9121 § 9, 1982; Ord. 8999 § 28, 1981].