§ 12-19. Franchise fee.

(A)

Unless prohibited by applicable law, a Franchisee, as compensation for the privilege granted under a franchise for the use of the public rights-of-way to construct, maintain and operate a cable system, shall pay the County a franchise fee in an amount of either (1) five percent (5%) of the franchisee's gross revenues; or (2) in the event 47 U.S.C. § 542 or other applicable law is amended to permit the County to assess a franchise fee of a greater percentage or amount than that specified in subsection (1) above, or on a broader revenue basis than defined in this chapter, the franchisee shall pay the County the new percentage or amount as established by the Board after a public hearing of which the franchisee has received notice.

(B)

Unless prohibited by applicable law, a Franchisee shall pay the franchise fee due to the County on a quarterly basis. Payment for each quarter shall be made to the County not later than forty-five (45) calendar days after the end of each calendar quarter. All payments shall be accompanied by a calculation of gross revenue certified by a certified public accountant or the franchisee's chief financial officer.

(C)

A franchisee shall file with the County, on a quarterly basis with the payment of the franchise fee, a financial statement setting forth the computation of gross revenues used to calculate the franchise fee for the preceding quarter and a detailed explanation of the method of computation. The statement shall be certified by a certified public accountant or the franchisee's chief financial officer. The franchisee shall bear the cost of the preparation of such financial statements.

(D)

Subject to applicable law, no acceptance by the County of any franchise fee payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the County may have for additional sums payable.

(E)

The franchise fee payment is not a payment in lieu of any other tax, fee or assessment.

(F)

Unless prohibited by applicable law, the County may, from time to time, and upon reasonable notice, but in no event not less than seven (7) days prior notice, inspect and audit any and all books and records of the franchisee relevant to the determination of gross revenues and the computation of franchise fees due, and may recompute any amounts determined to be payable under the franchise. The cost of the audit shall be borne by the franchisee if, as a result of the audit, the County determines that the franchisee has underpaid the franchise fees owed in an amount equal to or exceeding two percent (2%) of the franchise fees actually paid. A franchisee shall make all books and records necessary to satisfactorily perform the audit readily available for inspection to the auditors in the County, or in the alternative, the franchisee shall pay all costs necessary for the County to perform the audit at a location outside the County.

(G)

In the event that a franchise fee payment is not received by the County on or before the due date set forth in subsection B above, or is underpaid, the franchisee shall pay a late charge of eighteen percent (18%) per annum of the amount of the unpaid or underpaid franchise fee payment, provided, however, that such rate does not exceed the maximum amount allowed under Florida law, and that the franchisee shall not be responsible for paying interest on delinquent franchise fees resulting from erroneous database information provided by the County. Any interest and/or late charge paid by the franchisee is intended to be a charge incidental to the enforcement of a franchise within the meaning of 47 U.S.C. §542(g)(2)(D), and may not be deducted from the franchise fee imposed by this chapter or any franchise agreement. Furthermore, the County may invoke all rights and remedies available under applicable law and this chapter.

(H)

When a franchise terminates for whatever reason, the franchisee shall file with the County within sixty (60) calendar days of the date its operations in Orange County cease, a financial statement, certified by a certified public accountant or the franchisee's chief financial officer, showing the gross revenues received by the franchisee since the end of the previous fiscal year. Adjustments shall be made at that time for franchise fees due to the date that the franchisee's operations ceased.

(I)

Any transaction or arrangement which has the effect of circumventing payment of franchise fees and/or evasion of payment of franchise fees (for example, by non-collection of revenues, non-reporting of revenues, collection of revenues by parents, affiliates or subsidiaries, bartering, or any other means) from the operation of the franchisee's cable system to provide cable service in Orange County is strictly prohibited.

(Ord. No. 98-20, § 1, 9-15-98; Ord. No. 2001-25, § 6, 12-18-01)