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 Richfield
 Code of Ordinances
 Appendix C. TRANSITORY ORDINANCES
 TRANSITORY ORDINANCE NO. - 17.40A

  § 6. Financial Terms.  

Latest version.

  • While this Ordinance is in effect the obligations of Grantee are modified to the extent provided in this section.

    Subdivision 1. Franchise Fees; Percentage. The annual franchise fee shall be five percent (5%) of gross revenues payable as follows. An annual franchise fee of four percent (4%) shall be paid to City in equal quarterly payments on or before the first day of each of the months of November, February, May and August next following the end of Grantee's fiscal year. These payments are consistent with the payment arrangement contained in the Relief Ordinance. In addition and pursuant to the new local programming funding commitments set forth in Subdivision 4 herein, an annual franchise fee of one percent (1%) shall be paid to City in quarterly payments on or before the first day of each of the months of November, February, May and August on current year revenues beginning August 1, 1992. For purposes of calculating the annual franchise fee, all amounts spent to fund the Restructured Local Programming Obligations shall be deducted from Gross Revenues.

    Subdivision 2. Letters of Credit. The City Council may by resolution reduce the required amount of the Letter of Credit below $50,000.00 if in its sole discretion it determines that a lesser amount is reasonable and adequate to protect the public. It may thereafter, by resolution, require the amount of the Letter of Credit to be increased or fully restored to the amount of $50,000.00. Grantee shall comply with this requirement within 60 days after written notice has been given by the City.

    Subdivision 3. Performance Bond. The Grantee may dispense with the $300,000.00 performance bond required by the Franchise. The City Council may thereafter by resolution require that such bond, or similar bond in a lesser amount, be provided by Grantee. Grantee shall comply with this requirement within 60 days after written notice has been given by the City.

    Subdivision 4. Restructured Local Programming Obligations. Beginning with the third weekly show of November, 1991, Grantee shall assume responsibility for funding the production of the News Show. The News Show shall continue to be produced in a manner which is generally consistent with the terms of the Agreement between Grantee and the SWSCC, a copy of which is attached hereto as Exhibit 1. However, the role of the SWSCC and the Member Cities shall be advisory in nature an neither the SWSCC or Member Cities shall be required to provide ongoing direct financial support for the News Show. Grantee shall be obligated to continue to fund and produce the News Show for a period of two (2) years through the second weekly show of November, 1993. Thereafter, Grantee shall be required to expend at least $100,000.00 annually of its total funding requirement under the Restructured Local Programming Obligations on local origination programming. Such funding shall be expended by Grantee in consultation with the SWSCC, as set forth in the Restated Performance Agreement.

    All provisions of the Relief Ordinances and Performance Agreement related to the funding of Local Programming shall remain in effect through July 31, 1992.

    Beginning August 1, 1992, Grantee shall assume full responsibility for funding the Restructured Local Programming Obligations. From August 1 through December 31, 1992, the budget for local programming shall be 5/12 ths of $347,000.00; provided that Grantee shall be required to meet all Restructured Local Programming Obligations, including the production of the News Show, irrespective of the actual cost of meeting such obligations. Thereafter, the annual budget shall be escalated by an amount equal to five percent (5%) as estimated in Exhibit 2 hereto. Throughout the term of this Ordinance, Grantee shall consult with the SWSCC concerning the provision of the Restructured Local Programming Obligations pursuant to the terms of the Restated Performance Agreement. The expenditures made pursuant to this subdivision shall be in complete satisfaction of Grantee's total Restructured Local Programming Obligations during the period of this Ordinance and shall be deemed to satisfy Grantee's Local Programming Obligations as well.

    The amount of funding for the Restructured Local Programming Obligations shall not include any costs of operation, capital for access equipment replacement or administration not directly related to the provision of Local Programming. Grantee shall be responsible to maintain or replace, as necessary, the equipment listed in the Exhibit to the Contract for Local Programming Facilities, which is Exhibit 1 to the Performance Agreement, and shall not offset such expenditures against the funding for the Restructured Local Programming Obligations.