§ 21-21. Franchise fees and fees in lieu of franchise fees.

(1)

When applicable. This provision, and any franchise fee provision in a franchise adopted pursuant to this chapter shall not apply during such time as the City of Coral Springs is prohibited by state law from collecting a franchise fee or similar charge. If the city is permitted to charge a franchise fee or similar fee, but not the fee specified below, the highest franchise fee permitted will be paid.

(2)

Cable systems; generally. Each cable system franchisee shall pay the city a franchise fee in an amount equal to five (5) percent of gross revenues derived by the franchisee, or any cable operator of the cable system from the operation of the cable system to provide cable services. To prevent evasion of franchise fees, any revenues from activities performed by an affiliate that could have been performed by a cable operator of the system (including but not limited to selling advertisements and selling services to subscribers) will be treated as revenues of the franchisee.

(3)

Open video systems: generally. To the extent that the OVS is used to provide cable service, every operator of an open video system shall pay the city a fee in lieu of a franchise fee. The in lieu fee will be based on the gross revenues derived by the operator from the operation of the OVS to provide cable service. To prevent evasion of franchise fees, any revenues from activities performed by an affiliate that could have been performed by an operator of the system (including but not limited to selling advertisements, and selling services to subscribers) will be treated as revenues of the operator. The amount of the fee shall be equal to the percentage rate of the franchise fees imposed on cable operators pursuant to this section 21-21.

(4)

Use of systems by other persons. Persons who provide cable service to subscribers for a fee via a cable system or open video system and whose revenues are not included in the fees specified by section 21-21(2)-(3) may be charged a fee by the city.

(5)

Exceptions. The franchise fee required under this section 21-21 need not be paid in the case of a cable system or an open video system that is not designed to provide service in the city, and that does not provide service in the city. The city shall establish a fee in lieu of the fees specified in this section 21-21 that recovers an amount equivalent to the fair market value of the property used in the city and reserves the right to charge additional fees as contemplated by section 21-21(6).

(6)

Application to persons that provide different types of services. The fact that a fee is paid on one (1) type of service provided over a cable or open video system, does not excuse an operator from its duty to pay fees on other types of services provided over that facility. As an example, and not as a limitation of the foregoing, a cable operator that pays a franchise fee on revenues derived from the provision of cable services must pay the fees imposed upon telecommunication service providers to the extent that it provides telecommunications services; likewise, the operator of a telecommunications facility must pay a franchise fee to the extent it provides cable services to subscribers via a cable system.

(7)

General rules for payment of fees.

(A)

Unless otherwise specified in a franchise agreement or a license, franchise license and in-lieu fees shall be paid to the city quarterly, and not later than forty-five (45) calendar days after the end of each calendar quarter.

(B)

Unless a franchise agreement or license provides otherwise, each payment shall be accompanied by a statement showing the manner in which the fee was calculated.

(C)

No acceptance by the city of any fee shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of such payment be construed as a release of any claim the city may have for additional sums payable.

(D)

The franchise license or in lieu fee payment is not a payment in lieu of any tax, fee or other assessment except as specifically provided in this title, or as required by applicable law. By way of example, and not limitation, permit fees and business license taxes are not waived and remain applicable, and other fees and assessments to recover costs associated with operating and maintaining the right-of-way that may be established from time to time by resolution of the city commission.

(E)

Within ninety (90) calendar days following the end of the calendar year, each person required to pay a fee based upon gross revenues under this section 21-21 shall submit a statement, attested to by a certified public accountant or the chief financial officer of such person, setting forth gross revenues of the cable or open video system, by category, and describing what revenues were included and what revenues, if any, generated or derived from operations in the city were excluded in the fee calculation, and any adjustments made to gross revenues. If payments are late, in addition to paying any applicable penalties or damages, the person that owes the fee shall pay interest on the amount owed at the statutory interest rates applicable to judgments.

(F)

The city may, upon five (5) business days advance written notice, inspect and examine any and all books and records reasonably necessary to the determination of whether fees have been accurately computed and paid.

(G)

Notwithstanding the foregoing, in the event that a person that is obligated to pay a fee ceases to provide service for any reason (including as a result of a transfer), such person shall make a final payment of any amounts owed to the city within ninety (90) calendar days of the date its operations in the city cease, and shall provide a statement of gross revenues for the calendar year through the dates operations ceased which statement shall contain the information and certification required by section 21-21(7)(E).

Nothing in this section 21-21 is meant to alter the effect of any election made by the city regarding permit fees and license taxes that may be made pursuant to state law.

(Ord. No. 2000-134, § 1, 1-2-01)