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Company on behalf of the City, or any similar direct tax on the subscriber collected by the Company for any governmental entity. . G. "Subscriber" means any person, firm or corporation receiving or desiring to receive cable communication service from the Company's system. Section 1-3. Authority for Franchise. This franchise is granted as an exercise of the City's governmental powers, pursuant to the specific authority conferred upon it by Section 15.1-23.1 of the Code of Virginia, as amended. Section 1-4. Franchise Territory. This ordinance and the franchise granted by it shall be applicable to all territory within the corporate limits of the City of Charlottesville, as now or hereafter constituted, with the exception of certain of the property within those corporate limits belonging to the Rector and Visitors of the University of Virginia, over which, by law, the County of Albemarle retains jurisdiction. Section 1-5. Authority of Franchisee. Subject to the conditions imposed by other sections of this ordinance, the franchise hereby granted confers upon the Company the right to operate a cable communication system within the City, • and to use the City's streets, highways, alleys, public utility and pedestrian easements, rights-of-way and any other property of the City, and any easements that have been granted for comparable uses, for the installation, operation and maintenance of that system to serve the property owners and other inhabitants of the City. Section 1-6. Acceptance of Franchise; Term. This franchise shall become effective upon the Company's delivery to the City of a written agreement to be bound by all of its terms, not more than 30 days after the adoption of this ordinance by City Council. The term of the franchise shall be five years from the date of such acceptance. Section 1-7. Franchise Fee. A. As part of the consideration for the rights and privileges granted to it in this franchise, the Company shall pay to the Treasurer of the City an annual fee equal to five percent of its gross revenues, as defined in Section 1-2 of this ordinance. Such fee shall be paid in addition to, and not in lieu of, any real or personal property taxes, business license taxes, consumer utility taxes, or other taxes, service fees or charges of general application payable by the Company pursuant to other ordinances of the City. The franchise fee shall be payable each • January 31, calculated on the gross revenues of the Company from operation of its cable system during the preceding calendar year. -4-