Cable Television Franchise Agreement Page 8
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14Any undisputed overpayments made by the Grantee to the City/County/Village shall be credited
upon discovery of such overpayment until such time when the full value of such credit has been
applied to the Franchise Fee liability otherwise accruing under this Section.
5.1.1.
The Parties acknowledge that, at present, the Cable Act limits the
City/County/Village to collection of a maximum permissible Franchise Fee of five percent (5%)
of Gross Revenues.
In the event that a change in the Cable Act would allow the
City/County/Village to increase the Franchise Fee above five percent (5%), the
City/County/Village shall hold a public hearing and determine if the City/County/Village should
collect the additional amount. Following the determination, the City/County/Village shall notify
the Grantee of its intent to collect the increased Franchise Fee and Grantee shall have a
reasonable time (not to be less than ninety (90) days from receipt of notice from the
City/County/Village) to effectuate any changes necessary to begin the collection of such
increased Franchise Fee or notify the Grantee of its intent to not collect the increased fee. In the
event that the City/County/Village increases said Franchise Fee, the Grantee shall notify its
Subscribers of the City/County/Village’s decision to increase said fee prior to the
implementation of the collection of said fee from Subscribers as required by law.
5.1.2.
In the event a change in state or federal law requires the
City/County/Village to reduce the franchise fee percentage that may be collected, the parties
agree the Grantee shall reduce the percentage of franchise fees collected to the lower of: i) the
maximum permissible franchise fee percentage; or ii) the lowest franchise fee percentage paid
by any other Cable Operator granted a Cable Franchise by the City/County/Village pursuant to
the Cable Act, and Section 11-42-11 [for Counties, “Section 5-1095”] of the Illinois
Municipal/Counties Code; provided that: (a) such amendment is in compliance with the change
in state or federal law; (b) the City/County/Village approves the amendment by ordinance; and
(c) the City/County/Village notifies Grantee at least ninety (90) days prior to the effective date of
such an amendment.
5.1.3.
Taxes Not Included. The Grantee acknowledges and agrees that the term
“Franchise Fee” does not include any tax, fee, or assessment of general applicability (including
any such tax, fee, or assessment imposed on both utilities and Cable Operators on their services
but not including a tax, fee, or assessment which is unduly discriminatory against Cable
Operators or Cable Subscribers).
5.2.
Franchise Fees Subject to Audit.
The City/County/Village and Grantee
acknowledge that the audit standards are set forth in the Illinois Municipal/Counties Code at 65
ILCS 5/11-42-11.05 [for Counties, “55 ILCS 5/5-1095.1 for Counties] (Municipal/County
Franchise Fee Review; Requests For Information). Any audit shall be conducted in accordance
with generally applicable auditing standards.
5.3.
Proprietary Information. Notwithstanding anything to the contrary set forth in
this Agreement, the Grantee shall not be required to disclose information which it reasonably
deems to be proprietary or confidential in nature, with the exception of the information directly
related to an audit of Franchise Fees as set forth in Section 5.2. The City/County/Village agrees
to treat any information disclosed by the Grantee as confidential and only to disclose it to those
employees, representatives, and agents of the City/County/Village that have a need to know in
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