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<br />B. Grande will not discriminate in any way in the provision of services to customers on the basis of race, <br />color, religion, national origin, age, sex or disability. <br /> <br />C. Grande will not discriminate against any person in its employment practices because of race, color, <br />religion, national origin, age, or sex, nor will Grande discriminate in its employment practices against <br />any qualified person because of disability. <br /> <br />Section 10. Approval of Transfer. <br /> <br />A. Grande will have the right to transfer this Agreement. The written approval of the City Council of <br />the City will be secured by Grande before Grande may transfer or assign this Agreement, or any of the <br />rights or privileges included within it, or any significant portion of its plant or system. <br /> <br />B. Any successor or assignee of Grande will be bound by all the terms of the Agreement. Any transfer <br />or assignment will be effective only when the assignee files its written acceptance and agreement to be <br />bound by this Agreement with the City Clerk. <br /> <br />C. The City will not unreasonably withhold approval of a transfer. The proposed assignee must show <br />its ability to operate and maintain Grande's facilities, its financial responsibility, and its ability to comply <br />with the terms of this Agreement. <br /> <br />Section 11. Payment of Franchise Fee to City; Audit. <br /> <br />A. General Compensation. The City Council finds that the City right-of-way to be used by Grande in <br />the provision of services in the City is valuable public property, acquired and maintained by the City at <br />substantial expense and obligations to City taxpayers. Without the rights granted by this Agreement, <br />Grande would be required to undertake substantial investments and obligations in acquiring its own <br />right-of-way and easements. Grande agrees to pay to the City as general compensation a franchise fee <br />consisting offive percent of Grande's gross revenue derived within the City from cable service. It is the <br />intent of the parties to include in the term "gross revenue" the value of all consideration to Grande, cash <br />and otherwise, that Grande derives from the provision of cable service through and in connection with <br />Grande's facilities, including: <br /> <br />1. all fees charged to Grande's customers for use of Grande's facilities; <br /> <br />2. revenues from leasing Grande's facilities to third parties for provision of services otherwise <br />governed by the terms of this Agreement; <br /> <br />3. advertising, including a prorata portion of national revenue attributable to Grande from the <br />operation of Grande's facilities in the City; and <br /> <br />4. sale or rental of customer lists. <br /> <br />"Gross revenue" does not include Grande's revenues from telecommunications services, nor does it <br />include revenue not actually received. <br /> <br />B. Calculation and Payment on a Quarterly Basis of Franchise Fee. Grande will make franchise fee <br />payments to the City each calendar quarter. Grande will make these payments to the office designated <br />by the City Manager by the 30th day following the close of each respective quarter. Grande will make <br />any necessary prorations. Each payment will be accompanied by a summary of the data and calculations <br />to support the amount of the payment, including a breakout by month. <br /> <br />C. The compensation in this section is in addition to all special assessments and taxes, including, but <br />not limited to, ad valorem taxes, right-of-way construction permits, inspection fees and assessments for <br />recovery of costs incurred by the City. <br /> <br />D. For any quarterly payment made after noon on the date due, Grande shall pay a late payment charge <br />of$lOO. <br /> <br />E. Grande's payment of compensation under this section does not limit or impair the privileges or rights <br />of the City, whether under this Agreement or otherwise. The City's acceptance of payment will not be <br />construed as an agreement that the amount paid is correct, nor will it be construed as a release of any <br /> <br />C:\TEMP\Grande Franchise final.doc <br /> <br />7 <br />