§ 50-62. Alternative user charge.

(a)

This section is applicable to any licensed, but unfranchised, MCS provider, and to any MCS provider who has had its franchise ruled unconstitutional, unenforceable, or invalid. For all franchised MCS providers then the provisions concerning franchise fees shall be applicable.

(b)

Where not specifically prohibited by federal or state law, and as an alternative to the imposition of a franchise fee as set forth in this local law, the commission/franchising authority may impose, extract, and collect, a charge from an affected MCS provider for the use by such provider of the streets, rights-of-way, easements, and public ways of the city.

(c)

The alternative user charge shall be based on the following mathematical mode:

(1)

Determine the present value of all public streets, rights-of-way, easements, and public ways of the city in which are located multichannel system facilities and equipment of the affected MCS provider;

(2)

Take the average percentage increase in land appraisals within the city (as determined by the property appraiser for the city) for the five preceding years;

(3)

Take the average percentage increase for the five preceding years and use it to determine the dollar amount of property value increase for the remaining term of the franchise (if no franchise applicable, then use five years);

(4)

Add the present value to the dollar amount of property value increase for the remaining term of the franchise (if no franchise applicable then use five years);

(5)

Divide the adjusted value by the remaining number of years on the term of the franchise (if no franchise applicable then use five years);

(6)

Multiply that figure by five percent to arrive at the annual user charge that is to be collected from the affected MCS provider.

For purposes of illustration only, the formula reads as follows:

Present value, = (plus) dollar amount of property increase for remaining term of the franchise (based on average percentage increase of land appraisals for past years of franchise term, divide the adjusted value by the remaining years on the term of the franchise, multiply that figure by five percent, = (equals) the annual alternative user charge.

(d)

The commission/franchising authority adopts such an alternative user charge, in order to receive fair compensation for the affected MCS provider's use of the public streets and public ways if such compensation cannot be obtained by imposing a flat percentage fee on such MCS provider's annual gross revenues. However, an affected MCS provider may agree to an alternative charge that is based on a flat percentage of gross revenues, as long as that charge does not exceed five percent of an affected MCS provider's annual gross revenues.

(e)

It is expressly understood that a franchise fee and an alternative user charge will not be imposed on the same MCS provider at the same time, for the same period.

(f)

An affected MCS provider shall at no time be charged or obligated to pay an alternative user charge that exceeds five percent of such provider's gross revenues (as defined by this chapter) for any particular reporting period. If the alternative user charge does exceed five percent of gross revenues, then such alternative user charge should be reduced to reflect an amount not greater than the five percent cap.

(g)

An affected MCS provider shall pay 25 percent of the alternative user charge at the end of every three months.

(Ord. No. 92-12, § 96, 9-21-92)