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City of Smithville, MO
Clay County
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Table of Contents
Table of Contents
[R.O. 1991 § 615.130; Ord. No. 1607 § 12, 3-21-1995]
A. 
Discretion To Regulate Rates. The Act provides for regulation of basic service rates, including certain equipment necessary to receive basic service. The City reserves the right to exercise its authority under the Act to regulate the rates charged by operators for basic service and affiliated equipment. Should the Act be amended, or implementing regulations or other rules or decisions modify the authority of the City to regulate rates, the City shall retain the greatest discretion permissible to consider implementing Federal or State law in this area.
B. 
FCC Submissions. Should the City elect to regulate rates, it shall provide copies of its submissions to the FCC and to the operator at the time it submits the information to the FCC.
[R.O. 1991 § 615.140; Ord. No. 1607 § 13, 3-21-1995]
A. 
Payment To City.
1. 
Use Of Streets/Cost Of Regulation. In consideration of the rights, powers, privileges, permission and authority granted to an operator for use of the City's streets and other public property, an operator shall pay to the City an amount equal to five percent (5%) of its gross revenues received from the operation of the system in the City. This amount represents compensation for the cost of reasonable regulation permitted or mandated by Federal law, and for the use of the streets and other public property by an operator.
2. 
Payment Of Fee. Payment of annual franchise fees shall be in lieu of all other occupational, pole attachment or other license fees or charges imposed by the City with respect to the business of operating a cable communications system.
3. 
Revenue Not From Operation Of System. This franchise does not excuse the payment of any occupational license fee, charge or tax relating to any business endeavor for which an operator is not obligated to pay a franchise fee.
4. 
Taxes Of General Applicability. Imposition of a franchise fee does not prohibit the City from imposing on operators, as part of a group of businesses or activities, any tax, fee or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their services, but not including a tax, fee or assessment which is unduly discriminatory against cable operators or subscribers).
5. 
Payment Time And Method. Franchise fee payments shall be made within thirty (30) days after the expiration of each quarter year ending December 31, March 31, June 30 and September 30, that is, January 30, April 30, July 30 and October 30. Each payment shall be accompanied by a statement of gross revenues received for the quarter in connection with the operation of the system in the City, and a report showing the computation of the fees. For operators providing cable service in the City on the date this Chapter becomes effective, this shall be in two (2) parts. The first part shall set forth the gross revenues for the period of the quarter for which any lower franchise fee is assessed, and the second part shall set forth the gross revenues for the period of the quarter for which a five percent (5%) franchise fee is assessed.
6. 
Acceptance Of Payment Not Accord Or Release. No acceptance of any 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 City may have for further or additional sums payable under the provisions of this Chapter or a separate franchise agreement. All amounts paid by an operator shall be subject to audit by the City.
7. 
Late Payment. In the event that any payment is not made on or before the applicable date fixed in this Section, an operator shall pay, as additional compensation, an interest charge computed from such date at the annual rate equal to the commercial prime interest rate in effect upon the due date plus two (2) percentage points. The prime rate will be determined by the Bank of New York, or its successor, on the effective date on which interest becomes due.
8. 
Early Termination Of Franchise. In the event a franchise is terminated for any reason before its normal termination date, an operator shall immediately submit to the City a financial statement prepared within the terms of this Section showing the operator's gross revenues for the time elapsed since the last period for which the operator has paid to the City the required percentage of gross revenues. An operator shall pay to the City not later than thirty (30) days following termination of a franchise the required percentage of gross revenues.
9. 
Amendment Of The Act.
a. 
Specific Federal Limit. Should the Act be amended by changing the authorized maximum amount for a franchise fee which may be imposed by the City to a different specific percentage or amount, the City may, by ordinance, modify this Section to reflect the amendment of the Act.
b. 
Removal Of Federal Limit. Should the Act be amended by removing any cap on the authorized maximum amount for a franchise fee which may be imposed by the City, the City may increase the franchise fee to that amount assessed against a telephone company. However, should the amount assessed against a telephone company be less than the amount assessed against an operator at the time the cap is removed, the amount assessed against an operator shall not fall below that amount assessed at the time the cap is removed.
10. 
Approval Of Franchise Fee Pass-Through. If the City's approval is required under applicable law for an operator to pass through any portion of a franchise fee to its subscribers in the City, an operator shall not be required to pay that portion of any franchise fee to the City until such approval has been granted and has become effective.
B. 
Audits. The City may arrange for and conduct audits of the necessary financial records of an operator for the purpose of verifying franchise fees. The City shall notify an operator at least seven (7) days prior to the date it will begin reviewing the operator's records. At that time the City will, to the best of its ability, describe the records and documents it wants to review, and the operator shall make such of its books and records as may be relevant to the determination of gross revenues and franchise fees due available for inspection. For any record requested, but not disclosed by the operator, the City shall be given a written explanation of why the operator contends the record is not relevant. If requested, an operator shall provide a copy of the written procedures used by the operator to calculate the franchise fee base and payment to the City. An operator's records shall be reviewed during normal business hours at a convenient time and place made available by the operator. Notwithstanding the foregoing, an operator shall not be required to make any portion of its books and records available if it reasonably believes making such books and records available would violate applicable law, including without limitation the privacy provisions contained in the Act. If the City or any affiliate of the City shall construct or operate a cable communications system in the City, then any audits conducted pursuant to this Section shall be conducted by an independent auditor who has agreed in advance only to verify franchise fees and not to disclose any portion of an operator's books and records or other proprietary information to the City.
[R.O. 1991 § 615.150; Ord. No. 1607 § 14, 3-21-1995]
A. 
Insurance Required.
1. 
Every operator shall maintain, throughout the term of its franchise, liability insurance from a company approved by the City insuring the operator and the City against all damages described in Section 615.170 of this Chapter, in the minimum amounts of:
$1,000,000.00 for property damage to any one (1) person;
$1,000,000.00 for property damage in any one (1) accident;
$1,000,000.00 for personal bodily injury or death to any one (1) person or individual; and
$1,000,000.00 for personal bodily injury or death in any one (1) accident.
2. 
Should the General Assembly or the courts of the State of Missouri modify the rule of sovereign immunity, as it exists on the effective date of this Chapter, by increasing the potential liability of the City beyond these amounts, upon notice from the City, operators will provide liability insurance which will meet or exceed those new amounts.
B. 
Certificate Of Insurance. Every operator shall submit a certificate of insurance to the City confirming that a satisfactory policy is in effect, which policy shall be renewed on its anniversary throughout the term of the operator's franchise. The policy shall contain a separate endorsement requiring the insurance company to notify the City in writing of any change in, or cancellation of, the policy at least ten (10) days prior to any change or cancellation.
[R.O. 1991 § 615.160; Ord. No. 1607 § 15, 3-21-1995]
A. 
Indemnification.
1. 
Indemnification Of City Officials. Every operator shall, at its sole expense, fully indemnify, defend and hold harmless the City, the members of the Board, including the Mayor, and all other City Officials, employees, agents, boards and commissions, when acting in its or their capacities and within the scope of its or their official municipal duties, from and against any and all claims, suits, and actions, liability and judgment for damages or otherwise:
a. 
Damage To Persons Or Property. For actual or alleged injury or death to individuals, or injury to property, including loss of use of property due to an occurrence, whether or not such property is physically damaged or destroyed, in any way arising out of or through, or alleged to arise out of or through, any act or omission of the operator or its officers, agents, employees, or contractors, or to which the operator or its officers, agents, employees or contractors acts or omissions in any way contribute;
b. 
Violation Of Rights Or Interests. Arising out of or alleged to arise out of any claim for damages, with respect to the operator's operation of its system, for invasion of the right of privacy, defamation of any person, or the violation or infringement of any copyright, trademark, trade name, service mark or patent, or any other right of any person; or
c. 
Statutory Violations. Arising out of or alleged to arise out of the operator's failure to comply with the provisions any Statute, regulation or ordinance of the United States, State of Missouri, the City, or any local agency, applicable to the operator in its business.
2. 
Indemnification Of Operator. The City shall, at its sole expense, fully indemnify, defend and hold harmless an operator, its employees and agents, when acting in their capacity as such, from and against any and all claims, suits, and actions, liability and judgment for damages or otherwise in relation to any matter in any action, suit or proceeding arising out of any act or omission of the City or its officers, agents, employees or representatives.
3. 
Defense Of Actions. Nothing herein shall be deemed to prevent the parties indemnified and held harmless herein from participating in the defense of any litigation by their own counsel at their sole expense. Such participation shall not, under any circumstances, relieve either party from its duty of defending against liability or paying any judgment entered against such party.
4. 
Limitation On Damages. Should either party indemnify, defend, and hold harmless the other party as provided for in this Chapter, then that party's liability and obligations shall be limited to the actual amount of any damages as finally agreed upon by the operator and the City, together with reasonable expenses actually incurred in connection with any action, suit or proceeding arising under this Section. Neither party may increase, modify, or alter in any way the other party's liability provided said party has indemnified, defended, and held the other party harmless in any of these proceedings.
5. 
Negligence Or Willful Misconduct. Notwithstanding anything to the contrary contained in this Chapter, neither party shall be so indemnified or reimbursed in relation to any matter, in any action, suit or proceeding in which such party is negligent, including in the performance of its obligations under this Chapter or a separate franchise agreement, or has engaged in willful misconduct or criminal acts. The indemnifying party shall, however, provide a defense even though, in good faith, it believes at the commencement of any action that the other party may have engaged in the above-described conduct. However, if the indemnified party is found to have engaged in willful misconduct or criminal acts, the indemnifying party shall be reimbursed for all amounts paid and expenses incurred in connection with such action, suit or proceeding, including attorney's fees.
B. 
Liquidated Damages. Liquidated damages for non-performance during the construction of a system, or the upgrade of a system shall be chargeable as follows:
1. 
For failure to submit required plans regarding the construction of a system or the upgrade: one hundred dollars ($100.00) per day.
2. 
For failure to commence the construction of a system or the upgrade of a system in accordance with the requirements of this Chapter or a separate franchise agreement: one hundred dollars ($100.00) per day.
3. 
For failure to complete the construction of a system or the upgrade of a system in accordance with the requirements of this Chapter or a separate franchise agreement: one thousand dollars ($1,000.00) per day.